Cornish Metals said it is delighted with the independently produced Preliminary Economic Assessment for the South Crofty tin project in Cornwall
Base case after-tax Net Present Value (NPV) is US$201 million with an Internal Rate of Return (IRR) of 29.8%, numbers that Cornish said confirm the project's potential to be a low-cost mine.
Estimates were based on a 14-year life of mine (LOM) and a price of US$31,000 per tonne, with South Crofty expected to produce a clean, high-grade tin concentrate.
Cornish Metals added that based on the PEA’s after-tax rate of return upfront capital expenditure would be paid back within three years with about US$626 million generated over the life of the project.
The LOM average all-in sustaining cash cost (AISC) of US$13,661 /tonne of payable tin, meanwhile positions South Crofty as a low-cost tin producer, the statement added.
In total, 49,310 tonnes of tin metal in concentrate would be produced over a 14-year LOM at an average annual tin production of over 4,700 tonnes for years 2 through 6 and more than 5,000 tonnes in year four.
Owen Mihalop, chief operating officer said that the NPV was a strong foundation for further evaluation of the project, enabling Cornish Metals to move forward with additional preparation work and progress towards a construction decision, with planned first tin production in 2027.
“The low all-in sustaining cost of about US$13,700 per tonne of payable tin is an important metric and potentially positions the project within the lowest quartile of the global tin industry cost curve.
“We believe the opportunities for mineral resource expansion at South Crofty, and beyond, are significant and this will come into focus when the current mine dewatering and shaft refurbishment project is complete by Q3 2025.”
Ken Armstrong, interim chief executive, said: “This PEA is an important milestone for Cornish Metals and our goal of bringing responsible tin mining back to Cornwall and the United Kingdom.
“Most often PEAs are completed prior to entering the mine permitting process.
“South Crofty has the advantage of having already cleared these hurdles and benefits from an existing mine permit and process plant construction permissions as well as existing mining, transportation and renewable energy infrastructure."