Metals X reported positive Q3 results from its 50% owned Renison tin mine in Tasmania earlier today, with a strong increase in production to 1,718 tonnes of tin-in-concentrate and a significant reduction in operating costs.
Tin production rose 49% compared to Q2 and 4.5% compared to the same period of 2015, bringing total tin production for the calendar-year-to-date to 4,546 tonnes. Ore mined totalled 199,023t and plant throughput totalled 188,631t in Q3, both were new records for the operation. The increased production translated directly into lower unit costs; C1 cash costs fell 37% to A$11,028 per tonne compared to Q2, while full costs fell 24.5% to A$17,344 per tonne over the same period.
The increased plant throughput offset the lower mined tin grades of 1.26% Sn reported for the quarter, down from 1.37% Sn in Q3 2015 and also down compared to the 12 month rolling average of 2.11% Sn. Tin recoveries also fell to 71%, compared to the 12 month rolling average of 96.2%.
Q3 was the first full quarter where Metals X has run the operation as an owner-operator, a key contributor to the strong performance reported relative to Q2. The mine has also benefited from improvements in productivity from the exploitation of the mine’s Central Federal Basset Zone (CFB). The company has also reported strong results for the zone from its ongoing steady state resource definition drilling programme, including a highlight of 2.5m at 7.87% Sn. The results demonstrate the zone’s higher grade potential.
ITRI View: Metals X operates the mine as a 50:50 joint venture with Yunnan Tin Group and other Chinese investors. The operation produced 6,816 tonnes of tin-in-concentrate in 2015, but production this year is likely to fall below within the 6,000-6,500t range, largely due to the dip in Q2 output during the transition from contract mining. However, if the mine’s Q3 performance can be maintained going forwards, Renison’s tin production should increase next year and has the potential to surpass the 2015 total.
