According to the latest release, the project has a JORC Resource of 12.54 Mt at 0.54% Sn for roughly 68,000 tonnes of tin. While this is lower than the original exploration target, this uses a cut-off grade of 0.15% Sn.
The report estimates that around US$ 52 million will need to be invested before mining can begin. This initial CAPEX puts Oropesa at the lower end of the tin project CAPEX curve.
Once construction is completed, Elementos estimates that it will take around 4 years to reach full production. At nameplate capacity, 750,000 tonnes of ore will processed each year to produce a 62% tin concentrate.
The next steps for Oropesa are to complete a Definitive Feasibility Study and to finalise environmental permits. The company is also planning “further drilling to expand and upgrade the size of the existing resource and lower the overall waste-to-ore ratio for the project”.
Our view: With a reported full cost of around US$ 13,500/tonne, Oropesa sits at the lower half of the tin cost curve. Yet, according to the report, the mine would need a tin price of US$ 19,750 to achieve its targeted revenue.
Although tin prices are currently experiencing a downturn due to the coronavirus outbreak, we believe that prices will rebound in the medium-term future due to increasing demand and low investment in mine projects.