AusNiCo Limited announced the positive results of a preliminary economic evaluation of the Taronga tin project in New South Wales, which had been the subject of a pre-feasibility study by Newmont in the early 1980s. AusNiCo engaged DRA Pacific Pty Ltd to complete a new ±30% estimate for capital and operating costs for the processing plant (tin recovery only) based on parameters reported in the Newmont PFS. With the re-costing of plant capital and operating cost completed, the updated economic evaluation demonstrates a positive operating cash flow of some A$13 per tonne of ore, based on a 3.7 million tpy capacity plant incorporating heavy media separation and costing A$95 million. Work has now commenced to determine the potential value of by-product credits including copper and silver and a new PFS is to be commissioned.
The Taronga project has an historic resource estimate of 46.7Mt of ore containing 68,000 tonnes of tin, as well as significant copper and silver (up to 0.12%Cu and 6.5g/t respectively) and other minerals of possible by-product potential including tungsten, molybdenum, bismuth and indium. ASX-listed AusNiCo acquired control of the project following the completion of a merger with Taronga Mines in January this year.
