ASX-listed tin explorer and developer, Elementos Ltd., has announced a new, two-stage, development strategy focussing on the hard-rock open pit and underground resource at its 100% Cleveland Tin Project in Tasmania, detailed in a recent corporate presentation for investors, available here.
The Stage 1 development is now focussed on the near-surface tin resources at Cleveland, with an expanded open pit strategy expected to reduce dilution and ore losses and the cash flow generated used to accelerate development of the second stage of development. This would the see the operation move underground to target tin, copper and tungsten resources. During the low price environment of 2015 and 2016, the company had proposed a three-stage project strategy, with a tailings reprocessing operation preceding the development of open pit resources at the site. Any development of the tailing resource will now take place as part of the first stage open pit development.
Scoping studies have been completed on both the open pit and underground resources. The company has lodged a mine lease application taking into account the expanded open pit design with the Tasmanian government. Elementos are still carrying out metallurgical test work on the tailings with the aim to improve recoveries, but the main focus at the present time is carrying out an exploration programme to increase the near-surface, open pit resource.
With sufficient investment, the project timeline envisages completion of a DFS for the project in the first half of 2018 with construction in the second half of the year and first production by Q1 2019.
