Trading in Queensland-based MGT Resources shares commenced on the Australian Securities Exchange (ASX) on 9 January. As a prelude to the IPO, the company raised A$1.26 million though a share issue to two cornerstone investors from Hong Kong and Taiwan. MGT has several hard-rock tin prospects and a small refurbished mill in the Mount Garnet area of Northern Queensland and is also carrying out gold exploration work in the state.
The current indicated and inferred JORC resources at the Smiths Creek, Summer Hill and Dalcouth prospects amount to 793,400 tonnes at an average grade of 0.78% tin, or 6,163 tonnes contained tin. Having already refurbished and commissioned the Mount Veteran mill, the company is in a position to start production in the first half of this year, treating up to 70,000 tpy of ore to produce some 500 tpy of tin-in-concentrate. Feed is expected to come initially from the Dalcouth orebody.
Subject to success in delineating further resource potential, the mill can be expanded incrementally to 250,000 tpy and then 500,000 tpy capacity. Capex for the first stage expansion is estimated to be only A$1.5 million.
