Elementos Ltd (ASX:ELT, OTC:ELTLF) has received the final assays from a resource drilling program at the flagship, wholly-owned Oropesa Tin Project in Spain.
The latest result from hole ADD_23 confirms another near-surface tin hit and extends a new mineralisation zone at the cornerstone asset.
With the final piece of the puzzle in place, ELT has rounded out its drilling campaign at Oropesa, meaning it can push ahead with an updated mineral resource estimate (MRE) for the tin asset, slated for delivery next month.
It comes as global tin prices hit all-time highs on the London and Shanghai exchanges, trading at US$37,525 and US$44,439 a tonne, respectively.
New zone “to play critical role”
Elementos CEO Joe David said: “This final assay confirms further extension of the significant zone of shallow tin mineralisation recently identified at the project.
“This assay result is significant in both its thickness and its high grade. This shallow tin zone will likely play a critical role in the re-definition of the updated mineral resource estimate which is on track to be completed at the end of October 2021.
“The company is pleased to bring the data collection phase of the mineral resource estimate to a close, completing a very successful program.
“This updated mineral resource estimate, when completed, will set the foundations for a very robust European tin project.
“This mineralisation will underpin an updated mine plan, which in turn will underpin the economics of the project. The global spot tin price is currently at all-time highs and, if it remains elevated, this will likely materially change the economics of our project.
“The current tin price combined with an updated mineral resource estimate has the company very excited about the path forward for our shareholders moving into our definitive feasibility study for Oropesa.”
Final assay at Oropesa extends new #tin zone: https://t.co/QanpqbcYsa
This assay further builds confidence in the ability to grow the Oropesa resource at a time when global tin prices are at all-time-highs on both the London (US$37,525) and Shanghai exchanges (US$44,439/t). $ELT pic.twitter.com/ZSzfaNXgdU
— Elementos (@ElementosTin) September 27, 2021
Last result is in
The final result from the Oropesa drilling campaign follows assay data from 40 other diamond drill holes executed over the tin project.
ELT reported further results in early September, which defined tin mineralisation at the asset over a new, shallow zone.
As the last piece of the puzzle, hole ADD_23 confirms the zone’s prospectivity and extends the new tin zone further out.
Some of the best hits — reported at a 0.1% tin cut-off grade — include:
- 18.7 metres at 0.55% tin from 29.2 metres, including 6 metres at 1.10% from 41.9 metres;
- 1 metre at 0.31% from 74.5 metres; and
- 3.2 mertes at 0.18% from 21 metres.
More broadly, Elementos said the final result builds confidence in the ability to grow the project’s resource as demand for tin continues to soar.
Tin demand drives DFS fast-track
Amid rising tin prices, Elementos committed to advancing directly towards a definitive feasibility study (DFS) for Oropesa in July.
The move means it will bypass a traditional pre-feasibility study and seek out a definitive development decision to take advantage of the current tin market.
Oropesa is regarded as one of the world’s largest undeveloped, open-cut mineable tin deposits, meaning it could be a key supplier amid rising metal demand.
David said at the time: “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 and 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 hopes to finalise its DFS report in the second half of 2022.