Aus Tin Min­ing

Aus­tralia’s sec­ond tin fo­cused pro­ducer, Aus Tin Min­ing, re­mains fo­cused on the de­liv­ery of high-value met­als crit­i­cal to the en­ergy rev­o­lu­tion, with three near-term projects and ex­pan­sions un­der­way.

The Australian Mining Review - - CONTENTS - JES­SICA CUM­MINS

AF­TER re­sum­ing min­ing op­er­a­tions at the moth­balled Granville project in 2016, the race has been on for Aus Tin to grow pro­duc­tion.

Fol­low­ing an ex­pan­sive ap­provals process, the com­pany ob­tained the fi­nal green light in April 2018 to ex­pand the op­er­a­tion.

Once com­plete, this ex­pan­sion will in­clude the de­vel­op­ment of a tail­ings stor­age fa­cil­ity, the lat­est tech­nol­ogy grav­ity equip­ment, and re­sump­tion of min­ing at the high-grade Granville East de­posit via a cut­back on the east­ern wall.

The ex­pan­sion will also en­able Aus Tin to in­crease fore­cast pro­duc­tion to a rate of 550 tonnes per an­num (tpa) of con­tained tin.

Re­cent quar­ter re­sults proved largely pos­i­tive for Aus Tin, with sig­nif­i­cant ad­vance­ments made at Granville.

In April, the com­pany awarded Jem­rock a con­tract to un­der­take min­ing ac­tiv­i­ties at Granville East and be­gin con­struc­tion of a new tail­ings stor­age fa­cil­ity re­quired for Level 2 op­er­a­tions, set to be com­plete this quar­ter.

The com­pany also en­tered into a new two-year tin pur­chase agree­ment with Traxys Europe, which it claims will be on “more favourable terms for the com­pany”.

On the down side, fore­cast pro­duc­tion cash costs at Granville in­creased from $15,600 per tonne to $17,300 per tonne.

“In­cor­po­rat­ing the fi­nalised con­tract min­ing costs and adopt­ing a lower tin re­cov­ery of 60 per cent based on Level 1 op­er­a­tions, the fore­cast cash cost of pro­duc­tion (C1) for the Granville Ex­pan­sion has risen to $17,300/t of re­cov­ered tin,” Aus Tin chief ex­ec­u­tive Peter Williams said.

“Based on the cur­rent tin price, the oper­at­ing mar­gin is es­ti­mated at $9400/t of tin in con­cen­trate.”

The Granville ex­pan­sion was also set to pro­vide cash flow to un­der­pin the com­pany’s other as­sets in its de­vel­op­ment port­fo­lio; near term projects Taronga and Mt Cobalt.

Taronga Tin Project

Ranked fifth in the world for un­de­vel­oped global tin re­serves, the Taronga project in NSW has been a pri­or­ity for Aus Tin for some time.

Mr Williams said dur­ing the June quar­ter the project pro­gressed var­i­ous pre-con­struc­tion work and reg­u­la­tory plans.

“The de­sign for the Tail­ings Stor­age Fa­cil­ity was fi­nalised and sub­mit­ted to the reg­u­la­tors for con­struc­tion ap­proval, and engi­neers were ap­pointed to com­plete the pre­lim­i­nary de­sign and cost es­ti­mate for the pi­lot plant,” Mr Williams said.

“To progress the Min­ing Lease Ap­pli­ca­tion, a sur­vey of the lease bound­ary was com­pleted and sev­eral tech­ni­cal re­ports were re­ceived for in­clu­sion in the Min­ing Op­er­a­tions Plan.

“What’s no­table about Taronga is that it is a world class as­set with sig­nif­i­cant up­side and sub­ject to ob­tain­ing all reg­u­la­tory ap­provals we are tar­get­ing ore prod­uct by the end of 2018.”

Re­sults from re­cent pre­lim­i­nary test work also showed that the site was suit­able for ore sort­ing.

“An­a­lyt­i­cal re­sults for the stan­dard static test in­di­cate an over­all 54 per­cent in­crease in head grade (0.56 per cent tin to 0.86 per cent tin) whilst achiev­ing 96 per­cent tin re­cov­ery,” Mr Williams said.

Aus Tin will ac­cel­er­ate the next stage of test work with a two-tonne bulk sam­ple through TOMRA’s pi­lot fa­cil­ity in Syd­ney, and the re­sults will pro­vide in­for­ma­tion for scale-up to a full-scale pro­duc­tion plant.

With the de­sign of its new Tail­ing Stor­age Fa­cil­ity com­pleted and wait­ing ap­proval, a cost es­ti­mate was being re­viewed for the pi­lot plant as well as a sur­vey of the lease bound­ary to progress the Min­ing Lease ap­pli­ca­tion.

“What’s no­table about Taronga is that it is a world class as­set with sig­nif­i­cant up­side and it will be in pro­duc­tion later this year or the be­gin­ning of 2019.”

Al­lim­ages:AusTinMin­ing.

Aus Tin’s Granville Project, 20km north of Zee­han lies within the his­toric Heem­skirk tin field.

Mt Cobalt mag­netic tar­gets.

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