Metals X Limited announced today that it is to re-open the Renison mine in Tasmania, which has been on care and maintenance for the last two years. The announcement follows the belated granting of a permit to develop the nearby Mt Bischoff mine. The company will immediately set the wheels in motion for the re-start of the Renison and Mt Bischoff mines and Renison tin concentrator plant. Metals X will fund the project from existing cash reserves and is finalising a A$15 million debt facility with Credit Suisse (Singapore Branch) secured against the group’s nickel royalty income assets only to provide additional working capital for the group’s activities.
The Renison project is expected to produce approximately 8,500 tonnes of contained tin per annum with a blended feedstock from both underground mining at Renison and open pit mining at Mt Bischoff. The new operating plan also includes recovery of small quantities of by-product copper for the first time.
Metals X expects the manning up and pre-production phases of the Renison project will take 6-8 months to complete and it expects to resume tin production after commissioning of the process plant in mid 2008. Shortly thereafter the company expects to be in a position to consider the development of its Rentails tailings fuming project following the completion of a definitive feasibility study.
The company also released latest reserve estimates for its Tasmanian and Queensland properties. Total measured, indicated and inferred mineral resources (including tailings) amount to 195,103 tonnes of contained tin.
