Consolidated Tin Mines this week announced the results of a Pre-feasibility Study (PFS) on its Mt Garnet project in northern Queensland and is immediately embarking on a Definitive Feasibility Study (DFS). At a presentation in Sydney it announced a tight timetable of studies and negotiations which could result in initial tin production commencing by the end of next year.
The PFS is based on a 1Mtpy open pit operation delivering ore to a 1Mtpa conventional flotation concentrator that will remove the silica content prior to the ore being processed with conventional tin fuming using a rotary kiln. The Mt Garnet concentrator is expected to produce an estimated 2,900 tpy of tin-in-concentrate at 68% Sn plus some 235,000 tpy of iron ore at 65% Fe and 54,000 tpy of fluorite @ 86% CaF2 in concentrate. Net operating costs after allowing for by-product credits are estimated at some A$13,900/tonne of contained tin. Total capital expenditure to first production is put at A$76 million, based on the conversion to tin processing of an existing copper and base metals mill owned by partner and shareholder Snow Peak. The largest element in capex is A$40.6 million for roasting and fuming. The ore processing units will be fed by three deposits – Gillian, Pinnacles and Windermere – with the former expected to be the source of feed during the first three years of operation.
In a statement Consolidated Tin Mines’ Chairman and Managing Director Ralph De Lacey said: “I am extremely pleased to update the market on our prefeasibility study, which provides the critical reassurance to progress the development of the Mt Garnet Tin Project. The study demonstrates the economics of a robust and significant tin project. Unlike other projects, Mt Garnet boasts existing infrastructure and near surface ore, which are the drivers of low capital and operating costs. The PFS has confirmed that we have the opportunity to develop a substantial and profitable tin mining project. Discussions are well advanced with our major shareholder, Snow Peak, to finalise a binding agreement to ensure that full asset value is realised for all stakeholders, with the aim of achieving tin production by end 2014”.
