Aus Tin Mining today announced that mining has commenced at its Granville East Mine in Tasmania, with the first block averaging 2.1% tin.
In April, the company was awarded approval to increase its processing limit upwards to some 40,000 tonnes and to resume mining at the Granville East open pit mine. As part of this agreement, the company were required to build a new tailings storage facility. In doing so, the processing plant material will be transitioned from tailings and stockpiled material to the higher-grade ore from the Granville East Mine.
According to CEO Peter Williams, this milestone marks the transition to Level 2 operations. The company are said to be “particularly delighted with the grade of the first block”, which is “more typical of underground mines”, rather than the mine’s open-pit mining method.
Our View: The transition to Level 2 operations is forecast to result in an increase in tin-in-concentrate output to some 550 tonnes per year, which will provide the cash flow required to help underpin the company’s development portfolio, which includes the Taronga Tin Project. The Taronga project is currently in the planning phase, with the company progressing towards the Mining Operations Plan, which will be followed by an initial mining parcel of some 50,000 tonnes of ore.