Australian listed Aus Tin Mining Ltd. (ASX: ANW) has announced the execution of a Sale & Purchase Agreement to acquire the Granville Tin Project, near Zeehan, on Tasmania’s West coast, for which it has also revealed high grade assay results from recent drilling.
The project comprises of two mining leases, an open pit (Granville East) and a processing plant on care and maintenance. The company plans to restart the existing processing plant in Q1 2016 using the existing 15,000 tonne ore stockpile as feed. In addition, there are plans to expand the plant operation to treat 40,000 tpa of ore and to recommence mining at Granville East as a more sustainable source of plant feed.
The company has also reported the results of a limited drilling programme, undertaken recently at Granville East as part of the due diligence. The drilling results are encouraging with recorded intersections including 7 m at 2.65%Sn from 4 m. Having secured ownership of the Granville Tin Project, the company intends to undertake additional drilling at Granville East in due course to assess the potential of tin mineralisation at depth and the likely lifespan of the operation.
Chief Executive Officer, Peter Williams, said: “The acquisition of the Granville Tin Project represents an important milestone for Aus Tin Mining with the company positioned to become Australia’s second only ASX listed tin producer from Q1 2016. The combination of high tin grades, open‐pit mining and relatively simple metallurgy provide the foundation for a profitable operation at current prices and offer significant upside to an increased tin price.”