GRANVILLE TIN MINE CHANGES HANDS

The Australian Mining Review - - NEWS - RAY CHAN

Aus Tin Min­ing has signed a Heads of Agree­ment with Ten Min­ing to sell its Granville Tin Mine in Tas­ma­nia.

The agree­ment re­places a De­cem­ber 2019 fund­ing plan which sought to re­sume oper­a­tions at Granville.

Un­der the terms, Ten Min­ing will re­ceive all shares from Ten Star Min­ing, a sub­sidiary of Aus Tin Min­ing, which in turn will snare $365,000 and a fur­ther $635,000 for ex­ist­ing en­vi­ron­men­tal bond­ing com­mit­ments.

Aus Tin Min­ing wants to off­load the Granville Tin Mine to di­ver­sify its port­fo­lio and fo­cus on ex­plo­ration within the Lach­lan Fold Belt in NSW.

The com­pany re­cently sealed a farm-in agree­ment with Lach­lan Cop­per to earn a 51pc in­ter­est in three ex­plo­ration li­cence ar­eas.

The Lach­lan Fold Belt has al­ready recorded some suc­cess from the likes of Alkane Re­sources, Sky Met­als and

Mag­matic Re­sources. Since Jan­uary, Aus Tin Min­ing had been work­ing with Ten Min­ing on prepa­ra­tions to restart Granville, and was seek­ing ap­proval for 24-hour oper­a­tions at the site.

How­ever, de­lays in fi­nal­is­ing fund­ing doc­u­men­ta­tion and re­stricted move­ment into Tas­ma­nia due to COVID-19 had im­pacted the sched­ule.

In light of this, Aus Tin Min­ing con­sid­ered the divest­ment to be an ad­van­tage as it shifts its fo­cus to cop­per and gold ex­plo­ration in NSW.

De­spite the sale, the com­pany re­mains pos­i­tive on tin as a com­mod­ity, and will re­tain its Taronga Tin Project in north­ern NSW, which has a higher value than Granville.

Taronga has pre­vi­ously re­ported JORC re­serves of 22mt at 0.16pc tin for 35,600t con­tained tin.

A 2014 pre-fea­si­bil­ity study (PFS) also iden­ti­fied sev­eral ar­eas of po­ten­tial up­side in re­la­tion to re­source grades and by-prod­ucts. To test grade up­side at Taronga, Aus Tin Min­ing will un­der­take a drilling pro­gram once fund­ing is avail­able.

To pre­serve its sav­ings dur­ing COVID-19, Aus Tin im­ple­mented a 25pc re­duc­tion in fees for di­rec­tors and se­nior man­age­ment in March.

An over­view of the open cut pit at Granville.

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