A planned merger between ASX-listed gold and copper explorer Elementos and unlisted Rockwell Minerals could lead to the re-opening of another historic Australian tin mine. Rockwell has a 50% stake in the Cleveland project in north-west Tasmania and an option agreement to acquire the balance. The Cleveland mine was operated by Aberfoyle between 1968 and 1986, during which time it produced 23,519 tonnes in tin and 9,691 tonnes of copper in concentrate. Average head grades were 0.68% Sn and 0.28% Cu.
Apart from the previously exploited tin-copper deposit, the project includes a large low grade tin tailings dam and a separate tungsten deposit. Elementos has just released a JORC resource estimate for the Cleveland project which includes 47,000 tonnes of contained tin equivalent metal in the tin-copper deposit, 13,000 tonnes of contained tin equivalent in tailings and 12,000 tonnes of contained WO3 in the tungsten deposit. Rockwell has already completed an internal scoping study on tailings treatment and other studies on re-opening the mine. Development work planned or already in progress includes the finalisation of environmental permitting and mining lease applications and a de-watering programme to allow access to the old mine, which includes a four kilometre decline and eleven kilometres of underground development.
Subject to due diligence procedures and shareholder approval the merger between Elementos and Rockwell is expected to be closed by the end of June.
