Consolidated Tin Mines (ASX: CSD) has advanced discussions with Snow Peak Mining to formalise access to the Mt Garnet concentrator and its conversion to tin recovery for its Mt Garnet Tin Project in Queensland.
It is also seeking an offshore partner to locate the rotary kiln/reduction roasting process which is expected to significantly reduce capital and operating costs.
The company is planning to carry out a final infill and geotechnical drill program at the Gillian deposit to increase confidence in the Resource model and provide geotechnical information for open cut pit design.
Further evaluation work will also be carried out at the Windermere, which was not included in the Pre-Feasibility Study, with a view to extending the project’s mine life and expanding its production profile.
The Mt Garnet Tin Project is set for production in the second half of 2014.
At the base case of tin priced at A$24,000 a tonne, Mt Garnet would deliver an internal rate of return (IRR) of 111%, with a LOM cash surplus, before tax of A$378.5 million.
It has the potential to generate $1.1 billion in total revenues over an initial mine life of nine years.
Capital cost to first production is estimated at $76 million with combined total cost of A$13,917/t tin FOB.
Detailed mine design and optimisation is expected to significantly reduce mining costs.
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