Consolidated Tin Mines : 15 Oct – CSD Einasleigh Exploration Program – Further Encouraging Drilling Results

Microsoft Word - CSD Wangou Further Drill Results Final for Release.docx

ANNOUNCEMENT

15 October 2015

ASX/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 REGISTER

279,770,521

TOP 5 SHAREHOLDERS

Current CSD Share Price: $0.047

Current LME Price Tin: US$16,155

Zinc: US$1,785 Copper: US$5,260 Lead: US$1,767

Einasleigh Exploration Program Further Encouraging Drilling Results

Consolidated Tin Mines Limited (ASX: CSD) is pleased to provide further drilling results on the Einasleigh Exploration Program under the farm‐in agreement between Snow Peak Mining Pty

Snow Peak Int'l

22.8%

Ltd and Wanguo International Mining Group (Wanguo) (The farm‐in agreement transfers to

st

ARM (NQ) Pty Ltd Ralph De Lacey HSBC Cust Ltd Baoxian Ji

10.4%

5.8%

2.8%

1.9%

CSD as part of the Asset Sale Agreement (ASA) set out on a notice of meeting on 1

2014).

Highlight assays include:

December

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OBJECTIVE

To become a fully diversified producer of base metals in concentrate and to develop the tin project through to production thus minimising metal price fluctuation risk

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STRATEGY

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

• Hole KB151 ‐ 11m @ 1.46% Cu and 0.29 g/t Au from 300m depth down hole, including 2m @ 5.61% Cu and 1.21 g/t Au (uncut; see Table below)
• Hole JA086B ‐ 2m @ 5.1% Zn, 1.0% Pb and 62 g/t Ag from 159m depth down hole
• Hole JA086B - 11m @ 4.7% Zn, 2.1% Pb and 32.1 g/t Ag from 163m depth down hole, including 3 m @ 6.73% Zn, 4.59% Pb and 33.6 g/t Ag

Further assay details are provided in Appendix 2.

KB151 is at Kaiser Bill and has a JORC resource (based on the JORC code 2004 edition) of 13,500,000 indicated tonnes at 0.8% Cu, 0.1 g/t Au, 6 g/t Ag and 1,500,000 inferred tonnes at 0.9% Cu, 0.1 g/t Au and 11 g/t Ag. (Refer Kagara Limited ASX release 25 October 2011) JA086B is at Jackson, part of the Chloe/Jackson polymetallic deposit, which has a combined resource for Chloe‐Jackson (Inferred plus Indicated, under JORC 2004) of 4.6Mt at 4.9% Zn, 2.0% Pb, 0.2% Cu and 52 g/t Ag. (Refer Kagara Limited ASX release 25 October 2011).

Continuation of near term drilling plans will focus on Kaiser Bill, Chloe and Jackson extensions as well as infill drilling to focus on potential high grade areas and to advance inferred and indicated resources to indicated and measured status.

Registered Office:

395 Lake Street,

Cairns North, QLD, 4870 Ph: +61 (0) 7 4032 3319

Page | 1

Summary of Results

KB151 was collared at 186870E, 7948490N (MGA94z55) with an Azimuth of 286 Degrees and targeted the southern, down‐dip edge of the deposit. The Kaiser Bill sulphide resource dips south at approximately 30 degrees, and plunges to the west‐south‐west. KB151 is shown in Figure 1.

Hole KB151	Northing (m) 7948490N	Easting (m) 186870E	RL (m) 478	EOH(m) 333.1	Dip ‐70	Azi 286˚AMG
FROM	TO	INTERVAL	% Cu	g/t Ag	g/t Au
300	311	11	1.46	7.9	0.29 uncut
300	311	11	1.46	7.9	0.20 cut

Figure 1: Cross‐section of drill Hole KB 151 (looking north‐east) in relation to existing drilling of Kaiser Bill Resource, with projected drill hole traces. Histogram values: green 0.4‐0.6% Cu; yellow 0.6‐0.8% Cu; orange 0.8‐1.0 % Cu. Geology: red , sulphide mineralisation; blue, biotite gneiss; pink; leucogneiss; purple, dolerite

JA086B was collared at 815620E, 7939663N (MGA94 55) with an Azimuth of 161 Degrees and targeted the extension of the north‐dipping, sheet‐like deposit beyond the limits of the currently defined resources. JA086A is shown in Figure 2.

Hole JA086B	Northing (m) 7939663N	Easting (m) 815630E	RL (m) 593	EOH(m) 228.2	Dip ‐65	Azi 161 ˚AMG
FROM	TO	INTERVAL	% Pb	% Zn	% Cu	Ag g/t
159	161	2	1.01	5.12	0.04	62
163	174	11	2.12	4.70	0.16	32.1

Figure 2: Cross‐section of drill Hole JA086B (815640E, looking east) in relation to existing drilling of Jackson Resource, with projected drill hole traces. Histogram values; orange 5‐7% Pb+Zn. Red polygon, north‐dipping sulphide mineralisation.

JA086B

About Consolidated Tin Mines Limited

Consolidated Tin Mines is finalising the acquisition and transfer of all assets held by SPM under an Asset Sale Agree (ASA) set out in a notice of meeting released to ASX on 1st December 2014. When complete the Company will become a base metal producing company producing Zinc, Lead and Copper concentrates with a Silver co‐ product. During the transitional period the company manages the SPM operations which produce polymetallic ore with the ore processed at the Mount Garnet concentrator located approximately 140km south west of Cairns in Northern Queensland. As part of the acquisition of SPM assets the company is actively exploring within the highly prospective Einasleigh/Greenvale area in North Queensland held by SPM 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 located at Mount 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.

Wanguo International Mining Group

Wanguo is a Hong Kong listed public company and is principally engaged in the business of mining, with an operating copper mine in the Jiangxi Province, China. Wanguo's farm in to earn a 50% interest requires them to develop an additional 20 Mt JORC Measured Resource or complete 150,000m of drilling on the exploration areas.

Wanguo will continue to fund and manage all exploration activity as well as be responsible for all environmental and reporting requirements.

Competent Person's Statement

The information regarding the exploration activities and information set out in this ASX Release is based on information compiled by Mr Terry Lees, a Competent Person, who is a consultant to the Wanguo exploration program, and a Fellow of Australian Institute of Geoscientist. Mr Lees has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity that is being undertaken to quality as a Competent Person as defined in the 2012 Editions of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Lees consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

For further information please contact: Cairns Corporate Headquarters Phone: +61 (0) 7 4032 3319

Website: www.csdtin.com.au Email: admin@csdtin.com.au

APPENDIX 1

Drill Hole KB 151

Drill Hole JA086B

Appendix 2

Assay Table - Kaiser Bill KB 151

HOLE	From	To	% Cu	Au g/t	Ag g/t
KB151	187	188	0.018
KB151	188	189	0.029
KB151	189	190	0.041
KB151	190	191
KB151	194	195	0.062
KB151	195	196	0.037
KB151	196	197	0.102
KB151	197	198	0.097
KB151	198	199	0.029
KB151	201	202	0.145
KB151	202	203	0.130
KB151	203	204	0.010
KB151	204	205	0.029
KB151	205	206	0.043
KB151	206	207	0.017
KB151	207	208	0.020
KB151	208	209	0.040
KB151	209	210	0.020
KB151	210	211	0.147
KB151	211	212	0.096
KB151	212	213	0.028
KB151	236	237	0.466

HOLE	From	To	% Cu	Au g/t	Ag g/t
KB151	237	238	0.110
KB151	238	239	0.046
KB151	239	240	0.147
KB151	271	272	0.254
KB151	299	300	0.093	0.31
KB151	300	301	0.811	0.19	4
KB151	301	302	3.320	0.59	20
KB151	302	303	7.900	1.84	39
KB151	303	304	0.887	0.21
KB151	304	305	0.078
KB151	305	306	1.200	0.06	11
KB151	306	307	0.183	0.08
KB151	307	308	0.593	0.07	5
KB151	308	309	0.240	0.07
KB151	309	310	0.413	0.01	4
KB151	310	311	0.390	0.02	4
KB151	311	312	0.012	0.02
KB151	312	313	0.026
KB151	313	314	0.035
KB151	314	315	0.020	0.02
KB151	315	316	0.040
KB151	316	317	0.011

*

Assay Results - Jackson JA086B

HOLE	FROM	TO	% Pb	% Zn	% Cu	Ag g/t
JA086B	108	109	0.039	0.048	0.007
JA086B	109	110	0.018	0.063	0.008
JA086B	155	156	0.021	0.056	0.006
JA086B	156	157	0.012	0.023
JA086B	157	158	0.015	0.034
JA086B	158	159	0.017	0.039	0.004
JA086B	159	160	0.510	3.280	0.052	27
JA086B	160	161	1.510	6.950	0.028	97
JA086B	161	162	0.012	0.055
JA086B	162	163	0.058	0.113
JA086B	163	164	0.031	2.790	0.014
JA086B	164	165	0.055	7.500	0.121
JA086B	165	166	1.170	3.060	0.136	45
JA086B	166	167	7.010	6.750	0.142	62
JA086B	167	168	4.820	7.200	0.248	28
JA086B	168	169	1.950	6.250	0.210	11
JA086B	169	170	1.250	4.190	0.191	6
JA086B	170	171	1.690	3.310	0.163	9
JA086B	171	172	2.080	3.820	0.251	54
JA086B	172	173	3.180	3.710	0.247	138
JA086B	173	174	0.074	3.160	0.079
JA086B	174	175	0.037	0.109	0.019
JA086B	175	176	0.029	0.173	0.059
JA086B	176	177	0.018	0.153	0.168
JA086B	177	178	0.011	0.038	0.011
JA086B	178	179	0.011	0.035	0.011
JA086B	179	180	0.008	0.034	0.007
JA086B	180	181	0.006	0.026	0.007

*

Appendix 3

The following information is provided to comply with the JORC (2012) requirements for the reporting KB151 and JA086B drilling results on tenement EPM 13072

SECTION 1 SAMPLING TECHNIQUES AND DATA

Criteria JORC Code explanation Commentary

Sampling techniques Nature and quality of sampling (e.g. cut

channels, random chips, or specific specialised industry standard measurement tools appropriate to the

minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used

Aspects of the determination of mineralisation that are Material to the Public Report. In cases where 'industry standard' work has been done this would be relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information

Drilling techniques Drill type (e.g. core, reverse circulation,

open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face- sampling bit or other type, whether core is oriented and if so, by what method, etc).

Drill sample recovery Method of recording and assessing core

and chip sample recoveries and results assessed

Measures taken to maximise sample recovery and ensure representative nature of the samples

Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

Diamond drill core (NQ2 size) was sampled.

Drill core was oriented by the drilling company using a standard Reflex orientation device on the core barrel. The bottom of hole line (BoH) was used to mark where to split the core, and the same side sampled if possible.

Assay intervals are determined geologically; typically 1m intervals, but not more than 1.5m. The whole sample crushed to 50000 ppm Cu, Zn) were re-assayed for ore-grade results with 4 acid digest and ICP/AES finish.

Diamond drilling NQ2, with oriented core from standard Reflex core orienting tool.

During logging core loss was documented. In the mineralized interval core loss in both holes was insignificant.

No measures, as both holes are diamond core with good recoveries.

There is no sample bias as all sampled material is drill core, with very good drill core recovery.

Criteria JORC Code explanation Commentary

Whether core and chip samples have

Logging

been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

The total length and percentage of the

NA. Kaiser Bill has Inferred and Indicated Resources reported by Copper Strike Ltd in 2010; Jackson has Inferred and Indicated Resources reported by Copper Strike Ltd in 2008.

Logging is conventional qualitative; all core is photographed.

relevant intersections logged All core islogged.

Sub-sampling techniques and sample preparation

If core, whether cut or sawn and whether quarter, half or all core taken.

If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

For all sample types, the nature, quality and appropriateness of the sample preparation technique.

Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

Core is sawn along 'BoH' orientation line (if present), and half core taken from the same side of BoH.

NA.

Diamond sawing of core and sampling half core is appropriate.

The current QAQC regime involves the submission of one blank sample and one certified low grade sample, at random intervals but averaging every 30 samples. QAQC standards are also used in-house by the laboratory.

Quality of assay data and laboratory tests

Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

Whether sample sizes are appropriate to the grain size of the material being sampled.

The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

Half core is appropriate.

Half core is appropriate.

Dissolution by 4 acids is considered 'near-total' digestion. Au by fire assay and ICP up to ore grade for base metals is appropriate. Ore grade assays (>50000 ppm Cu, Zn) were re-assayed with 4 acid digest and ICP/AES finish.

No geophysical tools or XRF instruments were used for any results in this report.

Criteria JORC Code explanation Commentary

Quality of assay data and laboratory tests continued

Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.

The current QAQC regime involves the submission of one blank sample and one certified low grade sample, at random intervals but averaging every 30 samples. QAQC standards are also used in-house by the laboratory.

Accuracy and precision are at an acceptable level. External laboratory checks will be undertaken as more results are returned and to double check the precision of ore-grade assays

Verification of sampling

and assaying The verification of significant intersections by either independent or alternative company personnel.

Significant intersections were not checked by an independent company or person. Assay results were checked against logging as a validation.

The use of twinned holes. Not at this time.

Documentation of primary data, data

entry procedures, data verification, data storage (physical and electronic) protocols.

Discuss any adjustment to assay data.

Location of data points Accuracy and quality of surveys used to

locate drillholes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

In accord with the company's 'Exploration Procedures Manual'.

At Kaiser Bill, the previous Resource Report for Copper Strike (Golder Associates, 2010), recommended cutting Cu grades >8% Cu to that level, and Au grades >0.9 g/t Au to that level. Both uncut and cut grades are reported.

Hole collars located with GPS. All holes are surveyed with single shot down-hole device, normally every 30m.

Data spacing and

Specification of the grid system used. MGA94 zone55 (KB151), MGA94 zone54 (JA086B).

Quality and adequacy of topographic

control. Topographic coverage is adequate.

Both KB151 and JA086B were drilled outside the currently

distribution Data spacing for reporting of Exploration Results.

Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

Whether sample compositing has been

defined resources, and appear likely to expand those resources if further drilling is successful.

Both KB151 and JA086B were drilled outside the currently defined resources, in order to expand these resources. No resources are currently being attached to these holes.

applied. No.

Orientation of data in relation to geological structure

Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

The drill holes appear to be consistent with the styles, thicknesses and grades for their locations within or on the margins of the Kaiser Bill and Jackson deposits, respectively.

The orientation of both drill holes is at a relatively high angle to the deposits, as currently understood. Structures likely to introduce sample bias were not intersected.

Samples kept in the company's core storage facility until

Sample security The measures taken to ensure sample security.

Audits or reviews The results of any audits or reviews of

transported by commercial carrier or CSD staff to the laboratory.

sampling techniques and data. No audits have been conducted.

SECTION 2 REPORTING OF EXPLORATION RESULTS

Criteria JORC Code explanation Commentary

Mineral tenement and land tenure status

Exploration done by other parties

Geology

Type, reference name/number, location and ownership including agreements or material issues with third parties including joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

Acknowledgment and appraisal of exploration by other parties.

Deposit type, geological setting and style of mineralisation

EPM13072, held by Snow Peak Mining Pty Ltd. Located 250km south west of Cairns. Subject to Assets Sales Agreement to Consolidated Tin Mines Limited, as approved by Company shareholders on 12 January 2015 and farm-in Agreement with Wanguo International Mining Group.

Granted under Private Indigenous Land Use Agreement with Ewamian Native Title Parties.

Significant previous work by Copper Strike Ltd, and before that Teck Cominco.

The host sequence of Kaiser Bill and Chloe-Jackson is the Palaeoproterozoic Einasleigh Metamorphics, consisting of amphibolite-grade or higher, calc-silicate, pelitic to psammitic gneiss, amphibolite and leucogneiss, intruded by Permo-Carboniferous felsic dykes.

Kaiser Bill in its' current configuration comprises disseminated and stringer sulphides with magnetite, locally to massive sulphide, within a weak but pervasive breccia, astride the contact between leucogneiss (interpreted as a metamorphosed felsic volcanic or intrusive rock) and metasedimentary biotite gneiss. Geometry, textures and alteration indicate the deposit is a syn-metamorphic replacement of both units the deposit straddles; leucogneiss and biotite gneiss. Silica-chlorite-magnetite alteration is intimately associated with mineralisation. Kaiser Bill has been referred to as an 'IOCG' (Iron-oxide Copper Gold) deposit.

Drill hole information A summary of all information material to

the understanding of the exploration results including tabulation of the following information for all Material drill holes:

• Easting and northing of the drill hole collar

• Elevation or RL (Reduced Level - elevation above sea level in meters) of the drill hole collar

• Dip and azimuth of the hole

• Down hole length and interception depth

• Hole length

The Chloe-Jackson trend contains a Pb-Zn-Ag mineral system, now present as a series of deposits that have geological similarities to 'Broken Hill type' deposits in terms of host rocks, alteration, mineralogy and chemistry. The sulphide system is hosted by altered calc-silicates, now a quartz-epidote-garnet assemblage, within metasedimentary biotite gneiss. Chloe is a north-dipping, east-plunging, lens- like zinc-lead-silver massive sulphide deposit, while the nearby Jackson deposit is a folded, north-dipping sheet-like deposit.

KB151 collar: 186870E, 7948490N (MGA94 z55), RL 478m.

Az 286˚AMG, dip -70˚, total length 333.1m.

JA086B collar: 815620E, 7939663N, (MGA94 z54), RL

593m. Az 161.5˚AMG, dip -65˚, total length 228.2m.

Full assays for relevant metals are included, and summary down hole intercepts in Tables.

Data aggregation methods

In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.

At Kaiser Bill, the previous Resource Report for Copper Strike (Golder Associates, 2010), recommended cutting Cu grades >8% Cu to that level, and Au grades >0.9 g/t Au to that level. Both uncut and cut grades are reported.

At Kaiser Bill, intercepts were calculated by summing assays of 1m intervals, and applying a cut-off grade of 0.4% Cu over a minimum 2 metres. The 0.4% Cu cut-off is the same as that used in previous resource calculations by Copper Strike Ltd, the latest in 2010.

At Jackson, previous resource calculations by Copper Strike Ltd, in 2008 used a 3% Zn equivalent cutoff grade, over a minimum 2 metres. Here the cutoff grade used is 3% (Pb+Zn) over minimum 2 metres, as a proxy for the Zn equivalent calculation. No cutting of high grades is required. Intercepts were calculated by summing assays of 1m intervals, and applying a cut-off grade 3% (Pb+Zn) over a minimum 2 metres.

Where aggregated intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated

and some typical examples of such aggregations should be shown in detail.

All samples in these results are 1 metre lengths.

Criteria JORC Code explanation Commentary

Data aggregation methods continued.

Relationship between mineralisation widths and intercept lengths

The assumptions used for any reporting of metal equivalent values should be clearly stated.

These relationships are particularly important in the reporting of exploration results.

If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. 'down hole length, true width not known').

No assumptions, apart from the use of Pb+Zn in the cut-off grade calculations.

KB151 intersects the south-dipping sulphide deposit at c. 65˚, so the estimated true thickness is 90% of the intersected width.

JA086B intersects the north-dipping sheet-like deposit at c. 75˚, so the estimated true thickness is 96% of the intersected width.

Diagrams Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plane view of drill hole collar locations and appropriate sectional views.

Balanced Reporting Where comprehensive reporting of all

Exploration Results is not practical, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

Cross-sections of each of the holes are included.

The respective Cu/Au and Pb/Zn/Cu/Ag results of all samples from the two holes at Kaiser Bill and Jackson are included.