Metals X today provided an update on its plans to re-start its Renison operation in Tasmania, but also announced the planned closure of the Collingwood mine in Queensland.
The company expects to begin re-commissioning of the Renison concentrator in mid-June. For three years the mill will be fed with ore from the Mt Bischoff open pit mine and Renison underground mine. Mining has already started at Mt Bishoff and will commence at Renison in May. Metals X forecasts that Renison’s total production of tin-in-concentrate will be 8,500 tonnes in financial year (July-June) 2008 – 2009, rising to a temporary peak of 10,580 tonnes in 2009 – 2010. Initial cash operating costs net of copper by-product credits are estimated at A$8,400/tonne (US$7,800/tonne). A feasibility study on tin tailings treatment at Renison, which could produce another 5,500 tpy, is due to be completed later this year.
Metals X will close the Collingwood mine, which opened in 2005 and produced 2,031 tonnes of tin-in-concentrate last year “late in the first half of this year”, once existing fully developed lodes are mined out. It has not yet been decided whether to put the mine on care and maintenance or permanently close it. Various problems have meant that production from the mine has fallen well short of its original planned capacity of some 3,500 tpy. The company is also selling off its other Queensland tin projects to the newly ASX-listed Consolidated Tin Mines.
