Metals X, which plans to reactivate the Renison and Mt Bischoff tin mines in Tasmania next year, continues to face operating problems at its Collingwood mine in northern Queensland. Production from the mine in the July-September quarter was only 391 tonnes of tin-in-concentrate, less than half theoretical capacity.
The main problem recently is that excessive dilution in mining has resulted in low head grades of 0.77% Sn. However the company reports that since the end of the quarter, productivity and grades have improved as the mine moved to new stoping areas and newly implemented control measures took effect. The company is also now carrying out further treatment of Collingwood concentrates at the Renison site in order to remove copper and arsenic, thereby reducing smelter penalty charges and producing a small quantity of copper concentrates. In the latest quarter cash operating costs were A$22,960/tonne (US$20,150/tonne at current exchange rates).
Metals X also reported that it has signed an option to sell the Gillian and Windemere tin projects in Queensland to Consolidated Tin Mines, a junior company planning to list on the ASX. Meanwhile pilot plant trials of the Rentails tailings treatment project are continuing, with fuming trials being carried out in November/December and a full feasibility study due to be completed in the first half of next year.
