Canadian tin explorer Cornish Metals (AIM/TSX-V: CUSN) has released an updated PEA demonstrating strong project economics for the historic tin mine in Cornwall, set to commence production in mid-2028.
Following the major investment from the UK National Wealth Fund and further investment from Vision Blue Resources, Cornish Metals has increased the pace of development at the fully-permitted South Crofty. The investment funds some initial capex requirements and aids in progressing mine dewatering and other early project works including detailed engineering studies.
The company is working to restart tin mining at South Crofty, one of the longest continuously operating tin mines globally which closed following the tin price crash of the 1980s. The deposit is the highest-grade tin deposit in the world not currently in production.
The updated PEA sees mine throughput of 500 ktpa averaging 0.94% Sn, for production of 49,000 tonnes of tin as well as 3,800 tonnes of copper and 3,200 tonnes of zinc.
Cost benchmarking work by ITA shows South Crofty’s operating costs firmly in the lower quartile of projected tin production costs in 2030, with the mine having an LOM net cash cost inclusive of zinc and copper by-product credits of US$13,493 per tonne of tin.
Further information on cost modelling services provided by ITA is available on our website.
With pre-production capital costs of £198 million (approximately US$267 million), and using a tin price of US$33,900 per tonne, the company anticipates a payback period of 3.3 years.
The company calculated a post-tax NPV6 of £180 million (approximately US$235 million) and an IRR of 20%. In the first five years of full production, Cornish Metals anticipates an annual average EBITDA of £70 million (approximately US$94 million).
Cornish Metals’ CEO, Don Turvey, said the PEA marks “another important step for South Crofty as we advance towards first tin production by mid-2028”, and highlighted the promising project economics.
The PEA uses a mine life of 14 years, and Turvey emphasised that “the upside potential through further Mineral Resource expansion, as evidenced by the mine’s historical record of consistently replacing mined tonnes and adding to the resource base”.
The company has a near-mine exploration target of 6-13 Mt grading 0.5-1.8% Sn.
Our view: ITA is pleased to see progress advancing at South Crofty and further confirmation of the project’s promising economics. Production as early as 2028 would make Cornish Metals one of the tin market’s first new producers since Alphamin Resources commenced production in 2019, and potentially the first primary tin miner in Europe.
Cornish Metals Inc is a member of ITA’s Explorers & Developers Group.
