Elementos Ltd (ASX:ELT, OTC:ELTLF) has exceeded initial expectations with a 50% increase in the total mineral resource estimate (MRE) at its 100%-owned Oropesa Tin Project in Spain to 18.86 million tonnes at 0.40% tin at a 0.15% tin cut-off.
It has also notched up a 78% increase in the measured and indicated MRE to 16.21 million tonnes from 9.34 million tonnes reported in 2018.
In the update, 16.62 million tonnes or 88% of the mineral resource is classified as measured and indicated, confirming both geological and grade continuity to support the preparation of a definitive feasibility study (DFS).
The company also noted that 4.97 million tonnes of the mineral resource is now within 100 metres of the surface.
Elementos’ sizeable increase in Oropesa’s MRE, completed by Measured Group, follows the company’s recently completed 46-diamond drill hole program within the project area and supersedes the MRE released in 2018.
Exceed goals set
Elementos CEO Joe David said: “We are extremely pleased by the results of the updated mineral resource estimate, which exceed the goals set by the company before the drilling program started last year in both the magnitude of the increase to the mineral resources tonnes and classification confidence compared to the 2018 numbers.
“These increases result in the project having a large, shallow and geologically confident mineral resource base to assess in our future mine planning studies, via techno-economic modification factors, and supports our goal of releasing a maiden JORC ore reserves statement at Oropesa.
Well-funded to progress to production
“In a period of record-high tin prices, this upgraded mineral resource estimate puts the company in a prime position to complete the mine planning stage of the definitive feasibility study next year and move this project forward and into production.
The company is well funded, with A$5.2 million cash (at September 30, 2021) and ~A$6.3 million of exercisable options outstanding which expire during 2021.
“Elementos is well positioned to progress Oropesa through feasibility studies and into production,” he said.
Shares today have been as much as 8% higher to A$0.027 while the company's market cap is approximately A$101.5 million.
Updated MRE
In comparison to the 2018 MRE, which was comprised of measured, indicated and inferred categories, Measured Group has upgraded the 2021 resource by:
- A significant increase in total mineral resource tonnes of +50% from 12.54 million tonnes to 18.86 million tonnes;
- A 1,200% increase in measured mineral resources from 0.33 million tonnes to 4.30 million tonnes;
- A 37% increase to indicated mineral resources from 9.01 million tonnes to 12.33 million tonnes;
- An increase in total contained tin tonnes of 11% from 68,000 tonnes to 75,400 tonnes; and
- An increase of 12,590 tonnes of contained tin in the measured and indicated mineral resource category.
Tin price
A tin price of US$35,000 per tonne has been employed being derived from sustained higher tin prices in 2021.
At the timing of this report, London Metal Exchange (LME) tin prices were over ~US$38,000 per tonne and China Metals Market prices over US$44,000 per tonne.