Elementos Ltd (ASX:ELT) (OTCMKTS:ELTLF) (FRA:9EM) board of directors have approved moving the development of the Oropesa Tin Project (Project) directly to a Definitive Feasibility Study (DFS).
This decision was taken in recognition of the extensive work undertaken to date, as well as to take advantage of the opportunity to accelerate the development timeframe of the project in a strong tin market.
Following a robust and multi-faceted project review, the board endorsed the strategy of moving directly into a DFS to mature the project.
“Continued strong tin mineralisation”
Elementos chief executive officer Joe David said: Our ‘direct-to-DFS’ decision follows the completion of the updated economic study completed last year and the continued strong tin mineralisation intercepts announced at Oropesa over the past nine months.
“The parallel progression of a new mineral resource estimate, feasibility development programs, environmental & exploitation applications and the commencement of the DFS puts Elementos in the best possible position to develop Oropesa rapidly into a tightening tin market.
“Current macroeconomic drivers strongly favour the development of new tin mines to meet a forecast supply deficit, particularly the European Union, which is short on tin mineralisation and low on producing mines.”
Elementos will further refine its DFS delivery date as programs of work are completed, but is targeting the finalisation in the second half of 2022.
Confirms confidence
The scope of the project is driven by numerous techno-economic factors, including:
- The high levels of project definition and engineering delivered in the 2020 updated economic study;
- The limited number of options remaining to be assessed with the project scope being defined clearly in the 2020 updated economic study;
- The feasibility development programs16 already in progress (metallurgical, geotechnical, hydrogeological) will input DFS level of engineering confidence;
- Recent tin price strength (over US$30,000/t) and the long-term supply and demand fundamentals;
- Strong European Union (EU) support for the development of ‘intra-EU’ strategic and critical mineral supplies and mines; and
- Strong demand for the proposed Oropesa tin concentrate by industry off-takers.
Bypassing a PFS in favour of a DFS reflects the company’s confidence in the project and should demonstrate to Elementos’ shareholders and stakeholders that the company’s primary focus is to drive the Oropesa Tin Project through its development gates and into production.