Eurotin Inc has released details of a preliminary economic assessment on its Oropesa project in southwestern Spain carried out by SRK Consulting, which shows the potential for the production of some 26,000 tonnes of tin-in-concentrate over an 11.7 year mine life.
The study is based on an open pit mine to a depth of 200 metres, based on the revised resource estimate published in June. The pre-production capital costs of a one million tpy operation are estimated at US$106.4 million. At an assumed average tin price of $27,000/tonne, the after tax net present value of the project at a 5% discount rate is estimated at $99 million. The PEA is based on an average grade of 0.41% tin and 75.5% recovery into gravity and flotation concentrates grading some 55% tin.
Eurotin’s interim CEO David Danziger commented: “This PEA is a major step forward for us in the commercial development of the Oropesa project. In addition, the limited drilling below 200 metres has meant the good drill intersections made there could not be included in either the resource or the PEA’s open-pit design. These intersections convince us that Oropesa’s real future lies at depth beneath the 200-metre-deep open pit used in the PEA.”
