Australian-listed Elementos Ltd. (ASX-ELT) has reported the completion of a JORC compliant pre-feasibility study for the development of a tailings reprocessing operation at its Cleveland tin, copper and tungsten project, near Luina, Tasmania.
As part of the PFS, a subset of the indicated mineral resource has been upgraded to a probable ore reserve. This includes 3.7 Mt at 0.29% Sn and 0.13% Cu, equivalent to 11,000 t of contained tin and 4,800 t of contained copper. No further development of the Tailings Mineral Resource is planned prior to mining.
The PFS envisages a tailings reprocessing operation utilising a loader and truck method over a 7 year mine life. Tin and copper will be separated by flotation and gravity separation, with 47% of tin recovered to a 51% tin concentrate and 31% of copper recovered to an 18% Cu concentrate. An all-in C3 cost of US$ 13,137/tonne of tin is forecast, which represents the full cost of mining net of copper credits including royalties and depreciation, profitable even at current tin prices. Pre-production capital is calculated at A$ 21 million, with total capital at A$ 30.6 million. The Cleveland site has excellent infrastructure, with road access, power, water and communications available. The location is in a low-risk jurisdiction, with strong local support for mining. The open pit and underground resources also provide outlets for future project development.
The company will now undertake a feasibility study and continue with the approvals process, with production targeted for the 2016/2017 financial year.
