Record Production and Operational Gains The year commenced with particularly strong results. From July to September 2024, the site delivered some of the highest outputs recorded since operations commenced. Crushed ore volumes averaged nearly 87,000 tonnes per month, with Ore Sorter feed consistently above 55,000–60,000 tonnes and 5,500 to 6,000 tonnes of Ore Sorter concentrate produced. September marked a record-setting month: the Gravity Plant produced 10,702 mtu (~214 tonnes of WO3 concentrate at 50% equivalent), the highest monthly output achieved to date, while setting a 24 hour site record of 641 mtu. See ASX Announcement 2nd October 2024: ‘EQR Hits New Production Record as China and US Trade Tension Impact Tungsten Market’ These results were underpinned by a favourable feed blend, including significant volumes of high-grade ore from the deeper benches of the Stage I Pit, which lifted crusher head grades. The Ore Sorter converted this into strong concentrate volumes of 5,000–6,200 tonnes per month, which in turn delivered Gravity Plant feed grades averaging 0.43–0.44% WO₃. This chain effect, from higher-grade ore mined, to sorter output, to concentrate yield, provided a clear demonstration of how pit sequencing and ore quality directly drive plant performance and production. The commissioning of the scavenger jig at the Gravity plant during this period further supported recoveries, allowing the site to capture additional tungsten units from tailings. Adapting to Water Constraints From October 2024, operations faced a significant shift in conditions. Seasonal rainfall was well below historical averages, with the December quarter receiving just 130 mm compared with 808 mm in the prior year and far below the 10-year seasonal norm. Reduced water availability required a transition from wet to dry crushing and sorting, with remaining water reserves prioritised for the Gravity Plant. At the same time, ore quality was increasingly constrained as mining advanced into the upper benches of the Stage II Pit. By November, just 8,814 tonnes of high-grade ore was available, and by December none at all, leaving crusher feed dominated by 25,000 tonnes of low-grade ore and more than 20,000 tonnes of historic stockpile material. This blend pushed the average head grade down to just 0.07% WO₃. Although crusher throughput in December remained relatively strong at 46,062 tonnes, the Ore Sorter produced only 1,135 tonnes of concentrate, and WO₃ output fell to 850 mtu. The decline underscored how production was simultaneously impacted by depleted high-grade ore availability, the reliance on low-grade and stockpiled feed, and the temporary loss of Gravity Plant capacity. Steady Operations Under Transitional Feed The correlation between crusher throughput, ore blend, and downstream plant performance was evident throughout the year. When high-grade ore formed the majority of crusher feed, as seen in August and September (where high-grade ore made up 50–75% of feed), sorter concentrate volumes were robust, supporting elevated Gravity Plant feed grades and record WO₃ production. Conversely, when feed was dominated by low-grade ore and stockpiles, Ore Sorter concentrate production fell below 2,000 tonnes per month, which in turn reduced the Gravity Plant feed grade to just 0.14–0.23% WO₃. This cascading effect directly constrained tungsten production, underscoring the importance of sequencing mining operations to access higher-grade ore sources. As operations moved into early 2025, production stabilised as crusher throughput recovered to consistent levels of 46,000–60,000 tonnes per month with modest head grades in the range of 0.07–0.09% WO₃. Ore Sorter throughput was sustained at ~30,000 tonnes per month, and the Gravity Plant consistently treated 16,000–20,000 tonnes, maintaining feed grade around 0.15–0.20% WO₃. This enabled steady production of 2,400–2,600 mtu of WO₃ concentrate per month average through the February to June period. Despite subdued grades, the Gravity Plant recovery remained strong, delivering consistent tungsten output and demonstrating operational resilience under transitional feed conditions. Plant availability remained high throughout the year, even as the site transitioned from wet to dry operations, deferred several major rebuilds into FY2026, and navigated logistics disruptions in April caused by Cyclone Alfred in the Townsville region. While logistics and concentrate shipments were temporarily affected, these challenges were quickly resolved. Importantly, the operation demonstrated its ability to maintain stability under constrained feed quality, highlighting both the robustness of the processing flowsheet and the adaptability of the operations team. Looking forward, the processing circuit is expected to benefit from the transition into deeper benches within the Stage II Pit, where higher-grade ore is anticipated to become increasingly available. This shift should progressively lift head grades, increase Ore Sorter concentrate yield, and strengthen Gravity Plant feed grades, thereby supporting higher tungsten recoveries. EQ Resources Limited Annual Report 2025 33
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