Tin contained at Renison Bell has significantly increased this year according to part-owner Metals X’ recent update to the mine’s Mineral Resource Estimate (MRE).
Renison, Australia’s largest (and only) tin mine, has been in operation for more than 100 years. However, it is increasingly important to demonstrate the continued long-term viability of the project in a tight tin market.
The updated MRE – which uses data up to 31 March 2022 – indicates strong exploration results, which offset mining depletion. During 2021, some 0.83Mt of ore was mined at Renison, containing some 12,400 tonnes of tin. The 2022 Resource increases Renison’s total in-situ stockpile by 6% (18.1kt).
Renison now has a total Resource of 19.8Mt at 1.61% Sn for just under 320kt of contained tin. Some 90% of this is contained is within the Measured and Indicated Resource, indicating high confidence.
One of the reasons behind the significant increase was the reduction in cut-off grade in the mine. In the 12 months between the previous and updated MRE, tin prices have increased by 62%, allowing for previously uneconomic material to be included in the estimate.
Mr Brett Smith, Executive Director for Metals X, views this result as “yet another outstanding year for the operation”. Brett continued, “We look forward to the updated Life of Mine plan later in the year which is expected to continue to support a mine life in excess of 10 years.” An updated Ore Reserve and Life-of-Mine Plan is to be completed in the third quarter of 2022.
Our view: The updated Renison MRE is increases confidence in the longevity of the historic mine. There is compelling evidence that the Renison Mineral Reserve will see a similar improvement to the Mineral Resource. While the updated Mineral Resource estimate doesn’t indicate the economic viability of the contained tin, a tin price of US$ 27,500/tonne was used for the cut-off grade. This cut-off grade will likely translate across to the Reserve estimate, especially with tin prices currently above US$ 30,000/tonne.