CONSOLIDATED TIN MINES LIMITED ACTIVITIES AND CASHFLOW REPORT
13 November 2017
ASX/MEDIA RELEASE
ASX: CSD Share Price: $0.025 (in trading halt) ABN: 57 126 634 606
TIN M IN ES LIM ITED
SEPTEMBER 2017 QUARTER ACTIVITIES REPORT
QUARTERLY ACTIVITIES OVERVIEW
Recommenced mining at the Mt Garnet underground mine on 5 July 2017 with first ore delivered to the ROM on 6 July.
Dewatering of the lower levels of Mt Garnet underground mine completed in July.
Completed the Mt Garnet Mill refurbishment and commissioning and commenced concentrate production on 24 July.
Development work continued at the Dry River South (DRS) project, located 180km south of Mt Garnet at the Surveyor Mine, including:
Commissioning of the cased dewatering bore, including a new poly pipeline from the bore to the Balcooma pit, providing the infrastructure necessary to dewater the DRS mine.
Establishment of access to the DRS Portal.
Commencement of refurbishment of the DRS decline. Once completed, the decline will provide access to the upper production zones of DRS with production from DRS scheduled to commence early next year.
Released an updated JORC Resource for Chloe and Jackson deposits at Einasleigh of 3Mt @ 5.3% Zn.
Dismissal of Baal Gammon Copper's ("BGC") legal claim against the Company with BGC required to pay costs.
$1.8m payable to BGC under the Baal Gammon settlement agreement paid in full.
SUBSEQUENT TO QUARTER END
Commenced trucking of concentrate to Townsville port in October.
Released an updated JORC Resource for the Kaiser Bill deposit at Einasleigh of 15.5Mt @ 0.93% Cu.
Announced CSD's "Company Roadmap Towards 2021" setting out a 4 year plan to maximise the value of the Company's projects (refer announcement dated 1 November 2017).
CONSOLIDATED TIN MINES LIMITED Page 1 of 5
Cairns Corporate Headquarters: 395 Lake Street, Cairns Qld 4870 Phone: +61 (7) 4032 3319
Email: info@csdtin.com.au Web: www.csdtin.com.au
OPERATIONS
The Company completed dewatering the Mt Garnet underground mine in July 2017 and recommenced underground mining operations on 5 July 2017, with first ore delivered to the ROM on 6 July 2017.
The Mt Garnet processing plant refurbishment and commissioning has been completed with the first concentrate produced on 24 July 2017. Transporting of concentrate to Townsville Port and sale to an offtake partner began during October.
Base Metal Production for the September quarter
Ore processed | 35,938 | tonnes |
Mill feed grade Zn | 2.77 | % |
Mill feed grade Cu | 0.38 | % |
Zn recovery | 73.33 | % |
Cu recovery | 67.73 | % |
Zn metal produced in concentrate | 758 | tonnes |
Cu metal produced in concentrate | 103 | tonnes |
Construction of a cased dewatering bore hole at the DRS project was completed in July 2017. A specialist submersible pump has been fitted at the bottom of the bore hole and is being used to transfer water from the DRS underground mine to the Balcooma pit, with progress on schedule. Dewatering of the upper levels of the DRS mine is complete.
The Surveyor in-pit dump has been reshaped to allow access to the historic DRS portal. Refurbishment of the DRS portal has been completed and refurbishment of the DRS decline is underway. Production from the upper levels of the DRS mine is scheduled to commence later this year.
EXPLORATION
Drilling at the Einasleigh Project is continuing with drilling programs underway at the Chloe, Jackson and Kaiser Bill Prospects (three separate drill rigs). These programs are part of the Company's focused exploration strategy to develop new base metal resources to underpin future production. Drill results from the Chloe drilling program were announced to the market 20 September and analysis of this data resulted in successful identification of extension potential of the known mineralisation footprint.
The following updated JORC Resource were recently announced to the ASX:
| Chloe and Jackson | 3Mt @ 5.3% Zn | announced 19 September |
| Kaiser Bill | 15.5Mt @ 0.93% Cu | announced 17 October |
The Company has also continued its exploration program targeting additional base metal resources that can be economically transported to the Mt Garnet processing plant, including:
Completion of the second stage of drilling at the Mt Garnet Deeps project, with a third stage of drilling to be completed during the December quarter. Results of the Stage 2 drilling program were reported in the ASX announcement dated 10 July 2017. The Mt Garnet Deeps Project is a conceptual target parallel to the Mt Garnet underground mine and is being assessed with primary focus on the
economic viability of Area 1 (refer to the 10 July 2017 announcement for further details). A decision on developing this area will be made by the board during the December quarter.
RC drilling of the Kingston and Clinker projects and the Balcooma deposit, all located near the Surveyor Mine.
Drilling of the Gillian Zinc prospect, located 9 km south of Mt Garnet, which is targeting potential Zinc at depth beneath the Gillian tin project.
Drilling of a multi-element (Pb, Zn, As, Cu) soil anomaly at the Nanyetta prospect, located three kilometres along strike to the north of the Mt Garnet mine.
The Company completed due diligence on the Muldiva prospect (refer CSD's ASX announcements dated 19 July and 30 October 2017). The results of this work indicated a potential prospect though did not meet the Company's expectation to add the anticipated tonnes and grade of ore to the Mt Garnet mill in a short timeframe and consequently the Board decided not to proceed with this acquisition.
CORPORATE
BGC's legal claim against the Company has been dismissed and BGC have been ordered to pay costs. Prior to this verdict the Company completed its obligation to pay $1.8m to BGC under the Baal Gammon settlement agreement.
The Company's audited financial statements for the year ended 30 June 2016 were lodged with ASX on 18 July 2017 and the December 2016 half-year financial statements were lodged on 17 August 2017. Quarterly reports for June, September & December 2016 and March 2017 were lodged on 18 August 2017 and the June 2017 Quarterly report was lodged on 25 August. The audit of the Company's 30 June 2017 financial statements is expected to be completed during the December quarter. The Directors will keep shareholders informed of any developments relating to the reinstatement to trading on ASX through the issue of further Company announcements as soon as further information becomes available.
CASH RESERVES & LOAN FACILITIES
The Company had $651,185 in cash reserves at the end of the September 2017 quarter.
As reported in the March 2017 Quarterly Activities Report dated 18 August 2017, Cyan Stone Pty Ltd (Cyan) has agreed to provide the Company with pre-payments of the subscription funds to fund the Company's working capital requirements and exploration activities. Whilst this is not a loan facility, should shareholders not approve the issue of shares to Cyan, the amounts prepaid will be converted into an interest-bearing loan.
For further information, please contact:
Cairns Corporate Headquarters Phone: +61 (7) 4032 3319
Website: www.csdtin.com.au Email: admin@csdtin.com.au
The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.
Table 1: Schedule of Tenements as at 30 September 2017
Registered Holder | Tenement No. | Tenement Name | Interest at start of quarter | Interest at end of quarter | Status |
Consolidated Tin Mines | MDL 38 | Gillian | 100% | 100% | Granted |
MDL 381 | Windermere | 100% | 100% | Granted | |
MDL 448 | Herberton Deep Lead | 100% | 100% | Granted | |
MDL 482 | Jeannie River | 100% | 100% | Granted | |
EPM 14185 | Mt Garnet | 100% | 100% | Granted | |
EPM 15611 | Lynd River | 100% | 100% | Granted | |
EPM 17073 | Mt Garnet Extended | 100% | 100% | Granted | |
EPM 17547 | Tate River Extended | 100% | 100% | Granted | |
EPM 17623 | Mt Garnet West | 100% | 100% | Granted | |
EPM 17753 | Mt Garnet Nth West | 100% | 100% | Granted | |
EPM 17875 | Lynd River Extended | 100% | 100% | Granted | |
EPM 17917 | Smith's Creek Extended | 100% | 100% | Granted | |
EPM 18000 | Mt Garnet East | 100% | 100% | Granted | |
EPM 18118 | Bolwarra | 100% | 100% | Granted | |
EPM 18321 | Mt Garnet South | 100% | 100% | Granted | |
EPM 18795 | Gillian | 100% | 100% | Granted | |
EPM 19105 | Jimbilly North | 100% | 100% | Granted | |
EPM 19204 | Nettle Creek South | 100% | 100% | Granted | |
EPM 19323 | Kangaroo Creek | 100% | 100% | Granted | |
EPM 19468 | Jeannie River Extended | 100% | 100% | Granted | |
EPM 19603 | Dinner Creek | 100% | 100% | Granted | |
EPM 25386 | Spring Creek | 100% | 100% | Granted | |
EPM 25427 | Nettle Creek | 100% | 100% | Granted | |
EPM 25428 | Reedy Creek | 100% | 100% | Granted | |
EPM 25689 | Twelve Mile | 100% | 100% | Granted | |
EPM 25702 | Soda | 100% | 100% | Granted | |
EPM 25711 | Brownville | 100% | 100% | Granted | |
EPM 25939 | Torwood | 100% | 100% | Granted | |
EPMA 26087 | Einasleigh Extended | 0% | 0% | Application | |
EPMA 26540 | Silver Valley | 0% | 0% | Application | |
EPMA 26635 | Einasleigh Upper | 0% | 0% | Application | |
MLA 20583 | Mid Battle Creek | 0% | 0% | Application | |
MLA 20584 | Nettle Creek Extended | 0% | 0% | Application | |
MLA 20585 | Upper Battle Creek | 0% | 0% | Application | |
MLA 20693 | Pinnacles | 0% | 0% | Application | |
MLA 20694 | Windermere | 0% | 0% | Application | |
ML 20743 | Gillian | 100% | 100% | Granted | |
MLA 100022 | Maitland | 0% | 0% | Application | |
Registered Holder | Tenement No. | Tenement Name | Interest at start | Interest at end | Status |
CTM Alluvial Pty Ltd | EMPA 26453 | Lynd Regional | 0% | 0% | Application |
ML 4069 | Nettle Creek | 100% | 100% | Granted | |
ML 4073 | Nettle Creek | 100% | 100% | Granted | |
ML 4074 | Nettle Creek | 100% | 100% | Granted | |
MLA 20721 | Kangaroo Creek | 0% | 0% | Application | |
MLA 20722 | Martins Terrace | 0% | 0% | Application | |
MLA 20723 | Martins Hill | 0% | 0% | Application | |
MLA 100023 | Boomerang | 0% | 0% | Application | |
Consolidated Tin Mines Limited published this content on 16 November 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 15 November 2017 21:29:08 UTC.
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