While the world financial crisis and lower tin prices have adversely affected a number of new mine projects, the big Pirquitas silver/tin/zinc operation in Argentina is still on schedule to start production early next year. In addition several Australian Stock Exchange listed companies have reported this week on progress being made to develop new operations, although only one of the projects is actually in Australia.
Canadian listed Silver Standard Resources reported that it spent US$47.0 million on construction and equipment at Pirquitas in Q3, bringing capex to date to $148 million. Total construction costs are estimated at $220 million. The company has $145 million in cash, following sale of another project in the USA, a silver bullion sale and completion of debt financing arrangements. Gas and water supply infrastructure is now in place, power generation facilities are currently being commissioned and construction of the mill is on schedule. Silver production will commence in Q1 2009, with installation of the tin circuit to be completed after than of the silver circuit. Annual tin-in-concentrate production is expected to be some 2,500 tpy.
Kasbah Resources has continued its drilling programme at the Achmmach deposit in Morocco and has identified a new high grade mineralized zone in the current quarter. Recent drill intercepts have ranged from 0.79% to 1.67% Sn. The company’s target is to identify a resource of some 12 – 14 million tonnes by Q4 2009 and produce a definitive feasibility study (DFS) by Q4 2010. At the end of September it had A$5.7 million cash, but is now aiming to secure additional funding to allow completion of the drilling programme and production of the DFS. The deposit could potentially support a 4,000 – 6,000 tpy tin operation from 2012, based on annual mining rates of 600,000 – 1,000,000 tonnes of ore.
Wolf Minerals today released results of financial modeling of the Hemerdon tungsten-tin project in the UK, following the recent announcement of a resource upgrade. The indicated resource at the project in Devon is 97.3 million tones of ore grading 0.22% tungsten trioxide and 0.023% tin. Although the economics of the project are principally dependent on tungsten, the mine could produce some 8,200 tonnes of tin over its life. The new modeling work gives the mine a median net present value of A$302 million. A feasibility study is due to be completed in May 2009, but Wolf is seeking a strategic industry partner to contribute to capital costs currently estimated at A$160 million.
Tin is also associated with tungsten trioxide at the Mount Lindsay project being drilled by Venture Minerals in North West Tasmania. The project is a magnetite (iron)-tin deposit located 15 km from the recently re-opened Renison mine and drilling has so far identified two high grade tin shoots. Venture is due to publish an initial tin/tungsten resource estimate for Mt Lindsay in the next few weeks.
