ASX-listed AusTin Mining has today released details of a Pre-feasibility Study (PFS) on the Taronga tin project in New South Wales. The planned open pit mine would involve capital expenditure of Au$87.83 million and life of mine cash operating costs of Au$17,935/tonne of tin-in-concentrate. At a forecast tin price of US$25,000/tonne and Au$:US$ exchange rate of 0.90, the project has a pre-tax ungeared net present value of Au$63.15 million.
The PFS proposes processing the relatively simple ore at 2.5Mt per annum using conventional practices and is expected to achieve an overall tin recovery of 70% and generate an average 2,815t of tin in concentrate per annum over a 9.3 year mine life. Medium grade concentrate (55% Sn) acceptable to tin smelters will be produced and are likely to be exported to the Asian market. The mine’s ore reserves are estimated under the new 2012 JORC reporting standard at 22.0Mt @ 0.16%Sn for 35,600t contained tin. However the company notes that there is upside potential in the mine economics notably as a function of ore grade. The independent consultants MiningOne which advised on the mineral resource suggested that the true ore grade could be between 0.19% and 0.25%Sn. If the actual grade of ore processed is 0.19%, the project NPV increases to Au$145.7 million.
The Company’s Chief Executive Officer, Mr Peter Williams said “We are pleased with the results of the pre‐feasibility study confirming the technical and economic viability of the Taronga Tin Project and are excited by the extent of upside opportunities identified during the work. Approaching the study from the perspective of not simply generating a technically sound project but also one that can be financed is expected to be rewarded as we move forward with our funding discussions.”
Over the past six months the Company has short-listed a group of global organisations that have expressed interest in providing the funding for the Definitive Feasibility Study (DFS) and these discussions will be now be progressed ahead of a decision to formally proceed with the DFS.
