CONSOLIDATED TIN MINES LIMITED ANNOUNCEMENT
11 May 2015ASX/MEDIA RELEASE
Consolidated Tin Mines Limited
ABN: 57 126 634 606
Phone: +61 (7) 4032 3319 info@csdtin.com.au
www.csdtin.com.au
Snapshot:
ASX CODE: CSD◊ ABOUT CSD Consolidated Tin Mines
(ASX: CSD) is a base metal
producing company with a significant tin project in
advanced stage DFS
◊
SHARES ON REGISTER279,770,521
TOP 5 SHAREHOLDERSSnow Peak Int'l | 22.8% |
ARM (NQ) Pty Ltd | 10.4% |
Ralph De Lacey | 5.8% |
Beacon Minerals | 5.0% |
Baoxian Ji | 1.9% |
◊
OBJECTIVETo develop the tin project through to production and become a diversified producer and minimise metal price fluctuation risk
◊
STRATEGYTo develop and establish tin production and focus on increasing mine life and production profile by developing other tin and base metal production opportunities within the broader Mt Garnet/ Greenvale/Einasleigh region
Current CSD Share Price: $0.055
Current LME Price Tin: US$16,150
Zinc: US$2,355
Copper: US$6,361
Lead: US$2,138
Consolidated Tin Mines Monthly Update - April 2015
Highlights
Consolidated Tin Mines Limited (ASX: CSD) is pleased to provide an update on base metal production and processing. During the month of April the Surveyor mine produced 33,000
Tonnes of ore containing Zinc, Lead, Copper and Silver.
The Mt Garnet Processing Plant processed a total of 40,200 Tonnes of ore producing 2,179
Tonnes of Zinc metal, 711 Tonnes of Lead, 246 Tonnes of Copper, 24,682 Ounces (Troy) of Silver and 144 Ounces (Troy) of Gold. This included a 3:1 blend of Mt Garnet ore stockpiled on the Mt Garnet ROM.
Mining is on track to recommence, post 2014/2015 wet season, at the Mt Garnet
Mine in May 2015.
Progress update of the Mt Garnet tin project Definitive Feasibility Study (DFS).
Gillian Definitive Feasibility Study Update
Pilot Fuming Facility identified at FEECO Green Bay, Wisconsin USA. Bulk sample has been shipped in preparation of pilot scale test work
Mt Garnet Tin Fuming Test Facility commissioned in March 2015 to continue the development of the metallurgical process
Acquisition of Freehold Land containing the Gillian mining lease and surrounding area to be completed by end of June 2015
Registered Office:
395 Lake Street,
Cairns North, QLD, 4870
Ph: +61 (0) 7 4032 3319
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Pilot Project
For the purpose of confirming processing parameters, the Company sourced a suitable pilot scale rotary kiln at FEECO International, based in Green Bay Wisconsin, USA. They operate a pilot kiln facility which will provide the necessary processing conditions to further optimise Sn roasting and recovery. The rotary kiln is 6.1m long with a refractory inner diameter of 0.53m supporting a feed rate of 150kg per hour.
The test work will be undertaken over a 5 day campaign from a 15 tonne bulk sample taken from the Gillian Site and shipped overseas. This sample was extracted from 14 pits using a 25 tonne excavator along the strike of the Gillian deposit, using a rock breaker where required to extract competent rock. The material was then processed through a mobile crusher to minus 25mm and loaded onto pallets. The container ship arrived in the USA on 29th April with expected delivery to FEECO on 11th May 2015.
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11th May 2015 Consolidated Tin Mines Limited
Process Optimisation
During July, August and December 2014, a test work campaign was conducted at CSIRO, in Victoria. The aim of the test work was to confirm the operating conditions for the tin fuming process. These tests achieved several milestones:
Roasting performed at 1000°c, near elimination in silica sinter.
Up to 91% recovery on reverse silica processed feed material, achieving 72% total recovery on tests 2270-26 and 2270-42.
Up to 77% total recovery on unprocessed raw feed material with test 2270-52.
100.00
90.00
80.00
70.00
60.00
50.00
40.00
30.00
20.00
10.00
Recovery (2270-52) Recovery (2270-42) Recovery (2270-26)
0.00
-1.00 -0.50 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50
Residence Time at 1000°c (hrs)
Mine Optimisation and Minimising Costs
A lab was commissioned at the Mt Garnet Concentrator as a significant cost benefit to off site test work. This allows for further test work to be undertaken to optimise and confirm parameters for the tin fuming process. A custom designed rotating drum muffle furnace was constructed by Tetlow Kilns & Furnaces in Clayton, Victoria. The lab initial setup costs were $65,734. This has a 22 test payback compared to off site test work costs and allows for on going and continuous
optimisation test work to be conducted into the future.
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2. Testing…. One… Two…. Three4 Consolidated Tin Mines Limited
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Ongoing Geological InvestigationsPetrological investigations of the Gillian resource have identified two distinct Rare Earth Element phases within the skarn. Investigations of these elements show an increased presence below the 100m depth of Gillian.
Acquisition of LandThe Company has entered into an Option agreement for purchase of Lot 2 on Plan SP254665 which is required for tin mining operations on the Gillian prospect being the background land for the tin mining operations area. CSD will acquire the land being 583.2Ha of freehold grazing land by the end of June 2015 for a GST exclusive price of $900,000. As part of the option agreement, option fees and all compensation paid for exploration activities since 2011 have been taken as a deposit on the purchase totalling $358,847 leaving a settlement price of $541,153.
Wanguo International Mining Group
Agreements for exploration and shared mining opportunities between CSD and the Wanguo International Mining Group (Wanguo) have commenced with a total of 4,818 soil geochemical samples collected from two survey areas at Balcooma and Einasleigh. Ground based IP and magnetic surveys undertaken over and in proximity to the Kaiser Bill prospect have yielded extremely encouraging results with the identification of previously unidentified anomalies.
Wanguo Senior Executives are scheduled to meet with the CSD Board members and the Senior Leadership
Team to discuss and finalise the planned exploration and drilling programs following these positive results.
The company is in advanced discussions with a number of investors and institutions regarding funding opportunities for the tin project and also for, and in conjunction with, growth and expansion opportunities.
CSD Managing Director, Mr John Banning, said of the quarter's results "CSD's strategy of creating a diversified and sustainable miner with a strong growth platform is progressing well through the acquisition of proximal assets that generate positive cash flow, enabling self-funded progression of the Mt Garnet Tin Project DFS, as well as securing a strong exploration partner to further develop the highly prospective acquired base metals assets. The CSD team has performed exceptionally well over the quarter with the asset acquisition occurring seamlessly, solid production and cost performance across the operations and progress of the Mt Garnet Tin
Project DFS. CSD is well positioned to continue driving this strategy forward."
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CSD Executive Joint Chairman, Mr Ralph De Lacey, said"The recent dip in the tin price has most analysts
baffled with no credible explanation to date. The fundamental price driver of supply /demand deficit seems to remain. We will attend the ITRI tin conference to be held in Shanghai 18th to 20th May where this issue will no doubt be high on the agenda and we should come away with a much clearer understanding. Although our focus on the development of the tin project remains our priority, we are now in the enviable position of being a diversified miner with zinc, copper, lead & silver production on going. With a company owned operating
mill generating positive cash-flow within nine kilometres of our Gillian tin project we can expect a smooth transition to tin production following a positive DFS result whilst still maintaining the mill diversification to minimise metal price risk."
For further information please contact:
John Banning | Ralph De Lacey | Darryl Harris |
Managing Director | Executive Joint Chairman | Director |
M: +61 448 101 507 | +61 428 163 176 | +61 419 908 645 |
john.banning@csdtin.com.au | ralph.delacey@csdtin.com.au | dh@csdtin.com.au |
W: www.csdtin.com.au |
About Consolidated Tin Mines
Consolidated Tin Mines (ASX: CSD) is a base metal producing company with current production over 300 wet metric tonnes per day of Zinc, Lead and Copper concentrates with a Silver co-product. The company operates two mines, with the ore processed at Mt Garnet located approximately 180km south west of Cairns in northern Queensland. The company is also actively exploring within the highly prospective Einasleigh/Greenvale area in north Queensland through a free carry farm in agreement. The company is also a focused tin explorer and developer. Its major tin development project, comprised of the Gillian and Pinnacles deposits, is also located at Mt Garnet in north Queensland. All CSD projects are located in established mining areas, in close proximity to the company's owned and operating concentrating infrastructure.
Consolidated Tin's objective is to maintain current base metal production and develop the tin project into a major low cost, open pit tin mining operation. On completion of a favourable tin project DFS, Consolidated Tin's strategy will be to develop and establish tin production and focus on increasing mine life and production profile by developing other tin and base metal production opportunities within the broader Mt Garnet/Greenvale/Einasleigh region. The Company will continue to diversify its asset base to minimise metal price risk.
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