Below is from Morgans Noosa conference summary sheet. The blue...

Below is from Morgans Noosa conference summary sheet. The blue comment is from Kyle Williams the Morgans Resource analysts.

EQ Resources (ASX:EQR) operates the Mt Carbine tungsten mine, North Queensland, a 55 minute drive from Port Douglas. For the past 3 years EQR has been processing a 12Mt low grade (0.075% WO ₃) stockpile in a 50/50JV with Europe-based Cronimet Group at a nominal rate of 1Mtpy. This has enabled EQR to optimise the efficiency of its TOMRA X-ray transmission (XRT) ore sorters and process plant. Cronimet is a metals trader and recycler, and purchases the tungsten concentrate on commercial terms to process at its Brazilian smelter. Mining has now re-commenced in EQR’s 100%-owned open pit, with a resource grade of 0.3% WO₃. Our expectation is that production will ramp up to 1Mtpy over the next 6 months, and that the JV with Cronimet, who have sourced and funded the plant and equipment for the operation to date, will be unwound. Tungsten is a critical and strategic metal, with 80% of production from China. My expectation is for profitable operation at the nominal 1Mtpy, and for drilling to increase the resource base, with Mt Carbine ultimately going underground.

What can I say. It looks like the first blasts are well above the resource grade of 0.3%, and recoveries are also high. That’s what understanding the orebody and three years of refining the processing plant can do for you. It’s just going to get bigger and better.