Elementos Ltd (ASX:ELT, OTC:ELTLF) has completed an optimisation study for the Oropesa Tin Project that outlines material increases in scale and economics for the Spanish project.
The study highlighted a 1.25 million tonnes per annum run-of-mine rate for the project, capable of producing 3,350 tonnes of contained tin per year.
It used a base-case tin price of US$32,500 per tonne – a notable discount from the current price of US$42,901 – and produced the following economic parameters:
- Pre-tax ungeared Net Present Value (NPV8%) of approximately A$292 million and post-tax NPV8% of approximately A$198 million;
- Pre-tax Internal Rate of Return (IRR) is approximately 46%; and
- Mine life of at least 13 years, with a payback period of about 2.5 years.
Altogether Elementos believes it holds a globally significant tin project, with a production target of 15.5 million tonnes of run-of-mine ore.
Low capital-ex, long-life tin project
“The optimisation study confirms that Oropesa will deliver a low capital-intensive project, with a competitive operational cost base, producing significant quantities of tin concentrate for at least 13 years. The operational and financial metrics summarised in this optimisation study are extremely positive,” Elementos managing director Joe David said.
“It demonstrates Oropesa’s potential to become a significant European tin operation, supplying material quantities of tin concentrate into the global supply chains during a period of unanticipated growth in demand to service the world’s insatiable appetite for critical electrical components.
“This optimisation study is now the basis for the company’s DFS (definitive feasibility study) and will be the basis of all the required regulatory submissions.”
Elementos will use the 1.25 million tonnes per annum project scale as the basis for a DFS and Spanish environmental and mining licence applications for Oropesa.
The mine has been redesigned to comply with all known environmental and mining licence regulations and restrictions, with a focus on minimising disturbed areas and environmental impact.
First phase of larger mining operation
“The fact that the financial outcomes presented are incredibly strong when based on a design which we believe is conservative and complies with all required regulations has the company more motivated than ever,” David continued.
“Following recent mineralisation intercepts outside the current mineral resource limits, the company anticipates that the presented optimisation study will prove to be the first phase of a larger mining operation, with the company planning further Oropesa exploration programs at the appropriate time.
“The study, completed by a team of independent consultants, follows extensive drilling, geological, geotechnical, feasibility and metallurgical test-work programs over more than 12 years.”
About Elementos
Elementos is committed to the safe and environmentally conscious exploration and production of high-grade tin resources, regardless of the location.
The company is focusing primarily on the Oropesa Tin Project in Spain, which was acquired in January 2020 and is regarded as one of the world’s largest undeveloped, open-cut mineable tin deposits, with access to world-class infrastructure.
It also owns the Cleveland Tin Project, which is around 80 kilometres southwest of Burnie in the mineral-rich northwest region of Tasmania, Australia.