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