Elementos Ltd (ASX:ELT, OTC:ELTLF) has begun an optimisation study at its wholly‐owned Oropesa Tin Project in Spain to reassess the planned annual mining rate and throughput of the processing plant and supporting infrastructure.
The study will confirm the basis of design for the definitive feasibility study (DFS), by re‐optimising the company’s May 2020 updated economic study, which already positioned Oropesa as a low-cost, globally significant new tin project.
Notably, the optimisation study follows a material increase in key project drivers over the past 18 months which have the potential to reshape the project’s economics and scale amid the recent historic tin price highs above US$40,000/tonne.
“Delivering optimal value to shareholders”
Elementos CEO Joe David said the optimisation study would not delay the delivery of the previously announced DFS.
“The optimisation study is forecast to be completed before key DFS inputs from the feasibility metallurgy, geotechnical and hydrogeological development programs are received towards the end of Q1 2022.
“It is an exciting time to be in tin and given changes in the tin market and growth in our Oropesa MRE, we believe it is worth re‐assessing the project scale to ensure we are delivering optimal value to our shareholders.
“For clarity, there is no commitment by the company that the scale of the project will increase, this is the focus on the optimisation study and will be confirmed at the completion.”
Optimisation study
Elementos' optimisation study is based on changes to key drivers such as global tin price and updated mineral resource estimate have the potential to reshape the project’s scale.
Global tin price: Elemetos’ May 2020 updated economic study was based on a tin price of US$19,750/ tonne.
The current LME cash price has recently closed over US$41,000/tonne (+108%) while the Chinese Metal Market tin price is trading over US$46,000/tonne (+133%)
Updated mineral resource: Following a 46‐hole drill campaign over the past year, Oropesa’s Total mineral resource estimate increased by 50% from 12.54 million tonnes to 18.86 million, with an additional 3.6 million shallow tonnes
Furthermore, Elementos has contracted Measured Group Pty Ltd to help deliver the optimisation study following its appointment to deliver the DFS mine plan and JORC reserves estimate during 2022.