Proactiveinvestors Australia Elementos Ltd https://www.proactiveinvestors.com.au Proactiveinvestors Australia Elementos Ltd RSS feed en Thu, 23 May 2019 12:59:50 +1000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Elementos pre-concentration testing for Oropesa Tin Project proves a success ]]> https://www.proactiveinvestors.com.au/companies/news/220743/elementos-pre-concentration-testing-for-oropesa-tin-project-proves-a-success-220743.html Elementos Limited's (ASX:ELT) first phase ore pre-concentration performance testing on a three-tonne bulk sample from the Oropesa Tin Project in Spain has proved successful.

The company is impressed with the results and initial visual inspection of the product and waste samples indicate that good separation has occurred.

These results demonstrate that ore sorting could potentially provide substantial operational and financial benefits at Oropesa.

A second phase of the test program will involve detailed chemical analyses of all the product and waste samples to determine the overall performance of the process with these results expected in late June 2019.

 

 

Elementos CEO Chris Creagh said: “We are very encouraged by the results of the first technical program completed at Oropesa, the first since finalisation of the acquisition earlier this year.

“While we have to wait for the final assay results to confirm the success of the program, early visual inspections of the sorted samples demonstrate great potential.

“A successful program could have a significant impact on the overall design of the Oropesa plant and potentially lower capital and operating costs which will in turn increase the overall return to shareholders.”

READ: Elementos has tin production path in three countries to help meet global shortage

Test work was completed at TOMRA Sorting Solutions in Hamburg, Germany.

The first phase involved separation of high-density particles from low density particles utilising TOMRA XRT technology.

READ: Elementos to outline its strategy to meet some of the predicted global shortfall in tin supply

The key objective of ore sorting is to maximise waste rejection prior to the expensive process of grinding in a processing plant.

The potential benefits of ore sorting include:

A mass rejection of waste could either reduce the scale of the downstream processing plant or enable an increased plant throughput; Increase the grade of the sorted product feeing into the downstream processing plant; Improve the metallurgical recoveries and concentrate grades in the downstream processing plant; and Reduce the capital and operating costs in the downstream plant, providing the opportunity to exploit more of the mineral resource.

TOMRA XRT sorted bulk sample from high-grade tin ore from Oropesa 

]]>
Wed, 22 May 2019 15:16:00 +1000 https://www.proactiveinvestors.com.au/companies/news/220743/elementos-pre-concentration-testing-for-oropesa-tin-project-proves-a-success-220743.html
<![CDATA[News - Elementos has tin production path in three countries to help meet global shortage ]]> https://www.proactiveinvestors.com.au/companies/news/218469/elementos-has-tin-production-path-in-three-countries-to-help-meet-global-shortage-218469.html Elementos Limited (ASX:ELT) is leveraged to the increasing global shortfall in tin through its staged strategy of bringing tin projects online in three different countries.

Executive director Chris Dunks told investors at this week's Proactive CEO Sessions in Sydney and Melbourne that tin had been identified as the metal most impacted by new technologies.

Chris Dunks addresses investors in Sydney at the CEO Session.

He said that with increasing demand for the metal in new technology, the future for tin looked very bright and Elementos was well-placed to benefit.

The company has three tin projects which it aims to bring online progressively - Oropesa in Spain, Cleveland in Tasmania and Temengor in Malaysia.

READ: Elementos defines exploration target for the Oropesa Tin Project in Spain

First cab off the rank will be Oropesa which is in the mining friendly area of Andalucia in southern Spain, near the original Rio Tinto mine.

Dunks said the project was half-way through the approvals process with first production scheduled for late 2021 or early 2022.

It boasts a 12 million tonne resource, with simple metallurgy.

A definitive feasibility study is on track for completion in mid to late 2019.

Oropesa's impressive tin grade is the equivalent of a 3 g/t gold project or a 1.7% copper project.

The second project in the company's production timetable is Cleveland, which is expected to proceed to the approvals and development phase to begin in early 2020.

Temengor is the final piece in the production jigsaw with this expected to begin in 2025.

It is in a remote location in the country's north, near the Rahman Hydraulic mine, which is the only remaining operating mine in Malaysia.

Read the presentation made by Chris Dunks here.

]]>
Fri, 12 Apr 2019 15:34:00 +1000 https://www.proactiveinvestors.com.au/companies/news/218469/elementos-has-tin-production-path-in-three-countries-to-help-meet-global-shortage-218469.html
<![CDATA[Media files - Elementos taps rising tin demand with Spain, Tasmania and Malaysia projects ]]> https://www.proactiveinvestors.com.au/companies/stocktube/12924/elementos-taps-rising-tin-demand-with-spain-tasmania-and-malaysia-projects-12924.html Tue, 09 Apr 2019 02:02:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/12924/elementos-taps-rising-tin-demand-with-spain-tasmania-and-malaysia-projects-12924.html <![CDATA[News - Elementos to outline its strategy to meet some of the predicted global shortfall in tin supply ]]> https://www.proactiveinvestors.com.au/companies/news/217381/elementos-to-outline-its-strategy-to-meet-some-of-the-predicted-global-shortfall-in-tin-supply-217381.html Elementos Ltd (ASX:ELT) will outline its multi-project tin production and exploration strategy to investors during next month’s Proactive CEO Sessions.

Executive director Chris Dunks will explain how the company is implementing a low-risk growth strategy, aiming to meet some of the predicted global shortfall in tin supply.

Chris Dunks

Elementos has a diversified portfolio of three high quality, exploration and near production tin projects in Spain, Australia and Malaysia.

Last month, Elementos defined an exploration target for the Oropsea Tin Project in Spain of 35.5 – 51 million tonnes at a grade ranging between 0.46% and 0.62% tin.

READ: Elementos defines exploration target for the Oropsea Tin Project in Spain

The exploration target has been accessed on prospective stratigraphy in the vicinity of the existing Oropsea JORC mineral resource of 9.34 million tonnes at 0.55% tin with 50,905 tonnes of contained tin.

 

Metals most impacted by new technologies

Register for the CEO Sessions today

Sydney details, Tuesday, April 9, 2019

Melbourne details, Wednesday, April 10, 2019

Also featuring at both sessions will be Metro Mining Ltd (ASX:MMI)

]]>
Thu, 28 Mar 2019 15:39:00 +1100 https://www.proactiveinvestors.com.au/companies/news/217381/elementos-to-outline-its-strategy-to-meet-some-of-the-predicted-global-shortfall-in-tin-supply-217381.html
<![CDATA[News - Elementos defines exploration target for the Oropesa Tin Project in Spain ]]> https://www.proactiveinvestors.com.au/companies/news/213777/elementos-defines-exploration-target-for-the-oropesa-tin-project-in-spain-213777.html Elementos Limited (ASX:ELT) has defined an exploration target for the Oropesa Tin Project in Spain of 35.5 – 51 million tonnes at a grade ranging between 0.46% and 0.62% tin.

The exploration target has been accessed on prospective stratigraphy in the vicinity of the existing Oropesa JORC mineral resource.

Exploration target results

The target was restricted to a depth of 150 metres from surface with results including 51 million tonnes at a grade of 0.62% for the upper range.

The lower range recorded 35.5 million tonnes at 0.46%.

Global mineral resource estimate

The total measured and indicated resource included 9.34 million tonnes at 0.55% with 50,905 tonnes of contained tin.

Replacement ore body with sulphides

The Oropesa tin mineralisation occurs as a replacement-style orebody associated with sulphides, predominantly pyrite and pyrrhotite within a sedimentary sequence.

Widespread folding of the sedimentary sequence has resulted in the mineralised sequence being overturned and tightly folded being repeated in places.

The project area contains a number of parallel induced polarisation (IP) anomalies, of which the central IP anomaly has undergone intensive diamond drilling.

Exploration drilling program

A detailed exploration drilling program is planned to test IP anomalies with priority drill targets along strike and to the north from the existing resource.

The targets are also in areas earmarked for infrastructure of the proposed mine development which is under application from the regulatory Andalucian authorities.

- Jessica Cummins

]]>
Fri, 01 Feb 2019 00:57:00 +1100 https://www.proactiveinvestors.com.au/companies/news/213777/elementos-defines-exploration-target-for-the-oropesa-tin-project-in-spain-213777.html
<![CDATA[News - Elementos upgrades tin and copper JORC resource at Tasmanian project ]]> https://www.proactiveinvestors.com.au/companies/news/205805/elementos-upgrades-tin-and-copper-jorc-resource-at-tasmanian-project-205805.html Elementos Ltd (ASX:ELT) has updated the overall JORC resource estimate for its Cleveland tin-copper and tungsten project in Tasmania.

The revised JORC hard rock combined open pit and underground resource is now at 7.47 million tonnes grading at 0.75% tin and 0.3% copper and containing 56,100 tonnes of tin and 22,200 tonnes of copper.

Open pit optimisation studies

Elementos chief executive officer Chris Creagh said the definition of a larger open pit tin and copper resource at Cleveland was a positive outcome from the exploration drilling completed in the second quarter of 2018.

Creagh said: “Open pit mining optimisation studies will commence as soon as possible.

“[These will] determine what is expected to be a significantly positive impact on the development potential of a combined open pit mining and tailings retreatment project and underground mining redevelopment of Cleveland.”

Mineralisation remains open

Contained tin content for Cleveland’s open pit resource has increased by 168% from the 2015 estimate, and contained copper by 164%, resulting in 6,426 tonnes of tin and 17,955 tonnes of copper.

The upgrade resulted from: modelling near surface ore lenses that were not included in the previous estimate; increased resources resulting from the recent drilling program; and reducing the dilution along the ore lenses.

Cleveland’s ore body remains open at depth, along strike and down-dip from the currently defined ore lenses.

Refurbishment of historical mine

Cleveland’s open put resource potential has been assessed to a depth of 150 metres from surface.

Pit boundaries are positioned with no impact on existing natural water courses and minimal interference with any future underground redevelopment.

Cleveland operated as an underground mine between 1908-1917 and more recently between 1968-1986.

A total of 23,519 tonnes of tin and 9,691 tonnes of copper were mined before closure and the historical workings extend more than 400 metres below surface.

Elementos plans to produce tin and copper concentrates in an initial combined open pit mining and tailings retreatment operation before refurbishing and developing the underground mine to produce tin, copper and tungsten concentrates.

]]>
Wed, 26 Sep 2018 21:16:00 +1000 https://www.proactiveinvestors.com.au/companies/news/205805/elementos-upgrades-tin-and-copper-jorc-resource-at-tasmanian-project-205805.html
<![CDATA[News - Elementos brings tin production timeline to Proactive's CEO Sessions ]]> https://www.proactiveinvestors.com.au/companies/news/180793/elementos-brings-tin-production-timeline-to-proactive-s-ceo-sessions-180793.html Elementos Ltd (ASX:ELT) is focused on the wholly-owned Cleveland Tin Project in Tasmania, where it has a clearly defined development strategy.

Stage 1 is a combined open pit and tailings retreatment operation to produce tin and copper concentrates, scheduled to commence in 2019.

Stage 2 will include refurbishment and development of the underground mine to produce tin, copper and tungsten concentrates.

Elementos is therefore positioned to add supply to the forecast tin shortfall forecast by 2020.

Find out more from Chris Dunks at Proactive's CEO Sessions.

Click below to register by email

- Melbourne: Tuesday 25th July.
- Sydney: Wednesday 26th July.
- Email Pauline here.
- Call office on (02) 9280 0700.

Presenter list

- Sayona Mining (ASX:SYA): Corey Nolan
- Lithium Power International (ASX:LPI): Andrew Phillips
- Elementos (ASX:ELT): Chris Dunks
- Tyranna Resources (ASX:TYX): Bruno Seneque
- Argent Minerals (ASX:ARD): David Busch (Melbourne only)
- Bryah Resources (ASX:BYH): Neil Marston (Sydney only)
 

]]>
Wed, 19 Jul 2017 08:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/180793/elementos-brings-tin-production-timeline-to-proactive-s-ceo-sessions-180793.html
<![CDATA[News - Elementos raising $2M to advance tin, copper mine in Tasmania. ]]> https://www.proactiveinvestors.com.au/companies/news/180009/elementos-raising-2m-to-advance-tin-copper-mine-in-tasmania-180009.html Elementos (ASX:ELT) is raising up to $2 million from investors to progress the development of its Cleveland tin, copper and tungsten mine in Northwestern Tasmania.

The company plans to develop the mine in three stages - tailings reprocessing, open pit mining and the redevelopment of the existing underground mine.

Elementos is raising $600,000 from a private placement to sophisticated investors at $0.006 per share, including $480,000 from Jervois Mining (ASX:JRV).

The company is also raising up to $1,423,947 from a non-renounceable rights issue to eligible shareholders at $0.006 per share, on the basis of one share for every four shares held.

Money raised from the placement and the rights issue will be used for the purposes of completing a diamond drilling program targeting an increase in the Cleveland open cut resource.

It is worth noting that the Cleveland Underground Mine has an existing indicated and inferred resource of 6.6 million tonnes at 0.63% tin and 0.25% copper.

Elementos will also carry out metallurgical testing, geotechnical studies and environmental compliance studies on the proposed Cleveland open cut development.

The company recently completed a ground magnetic survey which identified a number of new exploration targets along strike from the historical workings and within the mine sequence.

Elementos had previously received approval to proceed with the drilling program at Cleveland.

The company plans to commence drilling in August 2017 for which preparations have commenced.

]]>
Thu, 29 Jun 2017 11:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/180009/elementos-raising-2m-to-advance-tin-copper-mine-in-tasmania-180009.html
<![CDATA[News - Elementos Ltd to begin survey at Australia’s largest open pit tin resource ]]> https://www.proactiveinvestors.com.au/companies/news/169556/elementos-ltd-to-begin-survey-at-australias-largest-open-pit-tin-resource-169556.html The Cleveland project is considered to be the highest grade open pit tin resource within Australia.

It contains an indicated resource of 800,000 tonnes at 0.81% tin and 0.27% copper.

Elementos is aiming to start production at Cleveland by expanding the open cut resources with a targeted exploration program.

The company has contracted a local team to line cut on site in accordance with a plan that has received full approval from Mineral Resource Tasmania.

Line cutting is the process of clearing vegetation to allow safe access for the ground magnetic survey crew.

The ground magnetic survey will be carried out on a line spacing of 30 metres, with survey lines constructed perpendicular to the known strike of the mineralisation at Cleveland.

The survey will be across a total of about 32 line kilometres.

The close spaced survey lines will enable the company to collect magnetic data which will assist in accurate targeting for a proposed diamond drilling program in the first quarter of 2017.

Most of Elementos’ peers have seen strong growth (+100%) this year in response to the strengthening tin price.

]]>
Mon, 28 Nov 2016 07:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/169556/elementos-ltd-to-begin-survey-at-australias-largest-open-pit-tin-resource-169556.html
<![CDATA[News - Elementos adds cash as it looks to progress Cleveland tailings project ]]> https://www.proactiveinvestors.com.au/companies/news/153743/elementos-adds-cash-as-it-looks-to-progress-cleveland-tailings-project-66367.html Elementos (ASX:ELT) is currently investigating appropriate funding sources to progress the Cleveland tailings project, which include equity, project level debt, offtake partners and possibly export development banks.

The company aims to advance the Cleveland tin-copper-tungsten project in Tasmania through a staged commercialisation strategy.

Cleveland is a large Renison style tin-copper deposit, with a separate world-class long life tungsten porphyry deposit accessible from the same in-place underground infrastructure.

The three stage development process would commence with: Stage One; tailings re-treatment, Stage Two; open pit mining and Stage Three; underground mining over a total mine life of 15 years.

A PFS estimated a bite-sized total pre-production CAPEX of $21 million for Stage One.

Cleveland has significant government and stakeholder support including approvals. A mining lease application has been submitted.


Funding update

Elementos recently received a proposal for a loan from the company’s non-executive chairman, Andy Greig.

The company’s directors (with Greig abstaining) determined that the loan is on arms length commercial terms and resolved to execute the loan agreement.

- Loan amount = $500,000.
- Loan term = 2 years.
- Interest rate = 6.0%.
- Unsecured.
- No conversion rights.
- No requirement to repay principal or pay interest during the loan term.
- Repayable by the company at any time (during the loan term).

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

]]>
Tue, 29 Dec 2015 09:20:00 +1100 https://www.proactiveinvestors.com.au/companies/news/153743/elementos-adds-cash-as-it-looks-to-progress-cleveland-tailings-project-66367.html
<![CDATA[News - Elementos banks tax refund for Cleveland tin-copper-tungsten project ]]> https://www.proactiveinvestors.com.au/companies/news/153742/elementos-banks-tax-refund-for-cleveland-tin-copper-tungsten-project-65446.html Elementos Limited (ASX:ELT) has banked $320,000 under the Federal Government’s R&D Tax Incentive Scheme, which relates to expenditure at the company's Cleveland tin-copper-tungsten project during FY15.

Cleveland is a large Renison style tin-copper deposit located in Tasmania, with a separate world-class long life tungsten porphyry deposit accessible from the same in-place underground infrastructure.

The three stage development process would commence with: Stage One; tailings re-treatment, Stage Two; open pit mining and Stage Three; underground mining over a total mine life of 15 years.

A PFS estimated a bite-sized total pre-production CAPEX of $21M for Stage One, which would generate cash at today’s prices.

Stage One cash flow would be sufficient to fund Stage Two, which would fund Stage Three.

The process plant will treat a minimum of 650,000t and maximum of 900,000t of tin, copper and tungsten ores that would generate a total of $638M in sales of concentrate and $166M in pre-tax cash flow over 15 years.

Cleveland has significant government and stakeholder support including approvals. A mining lease application has been submitted.


Analysis

Proactive Investors estimates a 12 month price target of $0.033, assuming capital funding for Stage One.

This target does not include exploration upside from drilling of tin and tungsten targets in 2016, or include Stage Two or Stage Three – providing further share price upside.

We therefore consider our valuation to be very conservative.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

]]>
Thu, 05 Nov 2015 14:00:00 +1100 https://www.proactiveinvestors.com.au/companies/news/153742/elementos-banks-tax-refund-for-cleveland-tin-copper-tungsten-project-65446.html
<![CDATA[News - Elementos Limited appoints Christopher Dunks non-executive director ]]> https://www.proactiveinvestors.com.au/companies/news/153741/elementos-limited-appoints-christopher-dunks-non-executive-director-65437.html Elementos Limited (ASX: ELT) has appointed Christopher Dunks as a non-executive director.

Dunks is currently the managing director of Synergen Met Pty Ltd, a Brisbane-based company that is commercialising novel minerals processing technology.

He was also a founder and managing director of Rockwell Minerals Pty Ltd, the company that merged with Elementos in 2013, and negotiated the original deal to purchase the Cleveland Project.

Elementos is developing the advanced low cost Cleveland tin-copper-tungsten project in Tasmania through a staged commercialisation strategy.


Elementos: Research Note

Elementos is undervalued on staged tin and tungsten potential at Cleveland

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

]]>
Thu, 05 Nov 2015 09:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/153741/elementos-limited-appoints-christopher-dunks-non-executive-director-65437.html
<![CDATA[News - Elementos Limited appoints Andrew Greig to the board ]]> https://www.proactiveinvestors.com.au/companies/news/153740/elementos-limited-appoints-andrew-greig-to-the-board-65371.html Elementos Limited (ASX: ELT) has appointed Andrew Greig as non-executive chairman.

Greig has a wealth of experience and recently retired from a 35 year career with Bechtel Group, Inc, and he brings skills in the engineering and construction of large mining and minerals processing projects around the world.

Elementos is developing the advanced low cost Cleveland tin-copper-tungsten project in Tasmania through a staged commercialisation strategy.


Elementos: Research Note

Elementos is undervalued on staged tin and tungsten potential at Cleveland

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

]]>
Mon, 02 Nov 2015 10:00:00 +1100 https://www.proactiveinvestors.com.au/companies/news/153740/elementos-limited-appoints-andrew-greig-to-the-board-65371.html
<![CDATA[News - Elementos is undervalued on staged tin and tungsten potential at Cleveland ]]> https://www.proactiveinvestors.com.au/companies/news/153739/elementos-is-undervalued-on-staged-tin-and-tungsten-potential-at-cleveland-65261.html Elementos Limited is developing the advanced low cost Cleveland tin-copper-tungsten project in Tasmania through a staged commercialisation strategy.

Cleveland is a large Renison style tin-copper deposit, with a separate world-class long life tungsten porphyry deposit accessible from the same in-place underground infrastructure.

The three stage development process would commence with: Stage One; tailings re-treatment, Stage Two; open pit mining and Stage Three; underground mining over a Total mine life of 15 years.

A PFS estimated a bite-sized total pre-production CAPEX of $21M for Stage One, which would generate cash at today’s prices.

Stage One cash flow would be sufficient to fund Stage Two, which would fund Stage Three.

The process plant will treat a minimum of 650,000t and maximum of 900,000t of tin, copper and tungsten ores that would generate a total of $638M in sales of concentrate and $166M in pre-tax cash flow over 15 years.

Cleveland has significant government and stakeholder support including approvals. A mining lease application has been submitted.

Infrastructure is in place at Cleveland including power, water, communication, workforce, accommodation and an existing underground decline with development drives.

While the Cleveland tin-copper orebody is a globally significant tin deposit, the tungsten porphyry deposit is a potential Tier 1 strategic metal asset. The tungsten potential is not factored into the current Elementos share price.

Proactive Investors estimates a 12 month price target of $0.033, assuming capital funding for Stage One.

This target does not include exploration upside from drilling of tin and tungsten targets in 2016, or include Stage Two or Stage Three – providing further share price upside. We therefore consider our valuation to be very conservative.

 

ASX Code: ELT
Recommendation: Speculative Buy
Sector: Materials
12 Month Price Target: $0.033

Share Price: $0.011
52 Week -: High: $0.014/Low: $0.004
Issued Ordinary Shares: 767.5M
Options: 38.9M

Market Cap: $9M


Major Shareholders:-

Board & Management: 8.2%
Andrew Carlyle Greig: 21.4%
Other Top 20: 38.3%


Directors and Management:-
Chairman: Rick Anthon
Non-Executive Director: Calvin Treacy
Non-Executive Director:    Richard Seville
Non-Executive Director:    Corey Nolan
Chief Executive Officer: Tim McManus


BACKGROUND

Elementos Limited (ASX:ELT) is an Australian metals company that is focused on the development of the advanced stage “brownfield” Cleveland tin-copper-tungsten mine located in north-west Tasmania.

The Cleveland mine was an underground tin and copper producer that operated from 1968 to 1986 under the stewardship of Aberfoyle Limited, and processed 5.7 million tonnes of ore to produce 24,000 tonnes of tin and 10,000 tonnes of copper in concentrate form.

Cleveland is situated at Luina, which is approximately 60 kilometres from the port of Burnie, and is surrounded by well-developed infrastructure that includes sealed all weather roads, electric power, abundant water and a strong mining culture that will also provide a skilled workforce.


MAP ONE: CLEVELAND MINE LOCATION

The Company recently completed a management restructure as part of an initiative to reduce costs and advance development of the Cleveland Project, and appointed Tim McManus as Chief Executive Officer bringing over 20 years’ experience in project development that included roles as Chief Geologist with Xstrata Coal, Regional Manager with AMC Consultants, and Managing Director of Scorpion Energy.

Proactive Investors notes that the management team has completed technical studies that indicate high potential for a long life mine at Cleveland that will develop as a three stage development.

Stage One; tailings re-treatment, Stage Two; open pit mining and Stage Three; underground mining over a total mine life of 15 years.
 
Pre-production CAPEX is estimated at $20.9 million for Stage One that will generate sufficient free cash flow to fund development of Stage Two open pit mining and Stage Three underground mining.


GRAPH ONE: CUMULATIVE CASH FLOW 15 YEAR LIFE OF MINE REACHES $638 MILLION

Cumulative cash flow is currently estimated at $638 million over a 15 year mine life, with high potential to extend beyond a 20 year mine life.


STAGE ONE – CLEVELAND TAILINGS NEAR TERM PRODUCTION IN 2016-2017 TO DRIVE DEVELOPMENT

In August 2015, Elementos completed a Pre-Feasibility Study (PFS) on the wholly-owned Cleveland tailings Project known as TD1 and TD2, and confirmed technical and financial viability with highlights that include:

- Production to commence in 2017.
- Fully allocated cost (C3) is estimated at US$13,137 per recovered tonne of tin, and places the project in the bottom half of the ITRI C3 cost curve.
- Maximum plant feed rate of 650,000 tonnes of tailings per year for a project life of 7 years.
- 47% of tin recovered in concentrate form for a total of 5,200 tonnes of tin, and 31% of copper in concentrate for a total of 1,500 tonnes of copper.
- Pre-production capital required of A$20.9 million, with operating cost per tonne of tin recovered of US$7,879 (C1), US$12,055 (C2), and US$13,137 (C3).
- Life of mine average metal price received of US$21,171 per tonne of tin and US$6,900 per tonne of copper for total life of mine (tailings) revenue of A$143.0 million.
- Net cash flow of A$39.0 million to produce a Net Present Value of A$34.0 million (pre-tax) at a discount of 8%, Internal Rate of Return of 68% (pre-tax), and pay back of capital within 3 years.


DIARGRAM ONE: LAYOUT OF TAILINGS DAM DEPOSITS TD1 AND TD2

The JORC Probable Ore Reserve is estimated at 3.7m tonnes containing 0.29% tin and 0.13% copper containing 11,000 tonnes of tin and 4,800 tonnes of copper, and was generated from approximately 6,000 data points garnered from reliable historical production records that are sufficient for bankable feasibility studies, mine planning and production.

The PFS assumed that contractors would carry out mining and operate on a 24 hour / 7 day basis, and include full environmental controls and a rehabilitation plan to follow completion of tailings reprocessing.

Howcam-Mincore completed an engineering study that confirmed that the tailings require no crush or grind circuit and that a process plant design with conventional gravity and floatation circuits rated at a maximum of 650,000 tonnes per year can produce a tin concentrate grading 51% tin, and a copper concentrate grading 18%, with recoveries of 47% and 31% respectively.

Concentrate will be shipped via Burnie and Melbourne to Asian smelters.

Elementos is proceeding with environmental and mine permitting and Bankable Feasibility Study to support funding of Stage One operations, as well as permit applications for open pit and underground mining operations.

Local community and stakeholders are very supportive for the re-development of Cleveland that is located in a very low risk jurisdiction with a long history of support for mining operations.

CAPEX AND OPEX

Pre-production capital of A$20.9m is required for process plant commissioning and associated processing infrastructure. Post-production capital (including sustaining capital), funded from project cash flows, requires an additional A$9.74 million for a total CAPEX of A$30.6 million.

Contingency allowances include 15% for engineering studies, 15% for budget quotes and 25% for industry benchmarking which makes no allowance for the positive influences of current deflationary pressures and underutilisation within the resources markets and amongst contractors.

Life of Mine OPEX (operating costs) for a recovered tonne of tin on a Net Direct Cash Cost (C1) estimated at A$10,618 / US$7,879 per tonne and included mining, processing, inland transportation, ocean transportation, treatment and sale costs, general administration and copper credit.

Depreciation added A$5,627 / US$4,176 per tonne for a C2 production cost of A$16,245 / US$12,055 per tonne.

Tasmanian Government Royalty added A$1,458 / US$1,082 per tonne for a C3 production cost of A$17,703 / US$13,137 per tonne of tin recovered.

The tin price and foreign exchange rate forecasts for the PFS were derived from Roskill, and copper price forecast from Citi Research, with Roskill forecasting a recovery in tin prices to 2019, and considerable upside after 2020 due to expected supply deficits.

The project is profitable at current spot pricing.


STAGE TWO – CLEVELAND OPEN PITS – FORECAST PRODUCTION IN 2018

In August 2015, AMC Consultants completed and reported a Scoping Study for the Cleveland Open Pits based on a mining inventory of 600,000 tonnes at 0.50% tin and 0.14% copper and concluded:

- Over 98% of the mining inventory derived from JORC Indicated Resource of 828,000 tonnes at 0.81% tin and 0.27% copper.
- Open pit resource has been well drilled and also includes a JORC Inferred Resource of 14,000 tonnes at 0.99% tin and 0.34% copper.
- Five pits with an average stripping ratio of 5.1 will be mined at a combined rate of 200,000 tonnes per year over 3 years, utilising contract mining.
- The incremental capital cost is estimated at A$6.6 million, comprising A$5.6 million for plant upgrades and A$1.0 million for site works and pre-production waste stripping.
- CAPEX is fully funded by cash flow from Stage One and will require no additional financing.
- The projected additional cash flow from Stage Two operations will boost pre-tax cash flow by over 37% for a total of A$21 million.
- The project is cash flow positive at current tin and copper prices.
- The net direct cash cost (C1) of US$8,303 per recovered tonne of tin places the project in the bottom half of the industry cost curve.

The process plant employed for Stage One will be upgraded with the addition of a three stage crushing plant that includes a closed circuit screening, heavy media separation circuit, and ball mill and classifier circuit.

The upgraded process plant is expected to achieve a tin recovery of 70% at a concentrate grade of 60% tin and a copper recovery of 60% at a concentrate grade of 20% copper.

Elementos is considering commencing Feasibility Studies that include metallurgical test work on combining tailings with fresh rock, drill program to develop near surface mineralisation and financial studies.


STAGE THREE – UNDERGROUND MINING IN 2021

In September 2015 AMC Consultants completed and reported a Scoping Study that is the final stage of a three stage development that takes the Cleveland Project into underground mining and concluded:

- The projected pre-tax cash flow for the underground project is estimated at A$90 million, and boosts the pre-tax cash flow from Stages One, Stage Two and Stage Three to A$166 million.
- Refurbishment of the existing 3.5 kilometre long decline and utilisation of 9.7 kilometres of 25 kilometres of underground development minimises development capital.
- Underground infrastructure, orebody geometries and underground conditions allow use of low cost mechanised bulk mining with large machinery.
- Mining inventory of 1.2million tonnes at 0.61% tin and 0.22% copper, and 1.7 million tonnes at 0.31% tungsten oxide drawn from a JORC Indicated Resource of 4.2 million tonnes at 0.67% tin and 0.28% copper and Inferred Resource of 2.2 million tonnes at 0.56% tin and 0.19% copper for tin and copper (0.35% cut-off for tin); and 4 million tonnes at 0.30% tungsten (at 0.20% cut-off).
- Annualised underground ore production peaks at 650,000 tonnes, with potential capacity up to 900,000 tonnes.
- The CAPEX requirements are fully funded by cash flow from Stages One, Stage Two and Stage Three – and there are not expected to require additional debt or equity funding.
- The integrated Stages One, Stage Two and Stage Three mining operations are projected to generate total revenue of A$638 million over a 15 year mine life.
- Exploration potential remains open along strike and at depth.

CLEVELAND MINE - SIGNIFICANT EXPLORATION UPSIDE

The Cleveland mine geology lent itself to historic low cost mining techniques that employed trackless mining technologies, with ore mined from open-stopes between levels, which were 15 metres apart vertically, and within excellent ground conditions where stopes required no backfilling.


DIAGRAM TWO: CLEVELAND MINE EXISTING RESOURCES

These declines and drives are still in place and provide low cost access to existing tin and copper bearing lenses, and a large tungsten bearing porphyry, with mineralisation open along strike and depth.

Total JORC Indicated and Inferred Resources for open pit and underground resources are currently estimated at 6.6 million tonnes at 0.65% tin and 0.25% copper (at a 0.35% cut-off for tin); and Inferred Resource of 4 million tonnes at 0.30% tungsten (0.20% cut-off), exclusive of open pit resources.

Mineralisation mostly occurs in two styles that include tin (as cassiterite) and copper (as chalcopyrite) bearing semi-massive sulphide lenses that replace limestone, and a tungsten (as wolframite) bearing porphyry.

Tin and copper lenses are steeply dipping with strike lengths of up to 500 metres and widths of 30 metres and are geologically similar to the tin-bearing semi-massive and massive sulphide stratiform mineralisation at Renison.

Proactive Investors notes that resource estimates remain open and that conceptual tin resource potential falls into a range of 3 – 16 million tonnes at 0.6% - 0.7% for an additional 20,000 – 110,000 tonnes of tin, and copper of 3 -16 million tonnes at ~0.2% for an additional 10,000 – 30,000 tonnes of copper. The potential of the tungsten porphyry system is up to 60 million tonnes at ~0.3% tungsten, placing it as potentially one of the world’s truly great tungsten deposits of up to 120,000 tonnes of contained metal.


MINE DESIGN


DIAGRAM THREE: HISTORIC DEVELOPMENT AND PROPOSED MINING AREAS

Different ore extraction methods are required for the lenticular geometries that exist for the tin and copper orebodies, and for the massive domed structure that hosts the tungsten orebody.

Technical studies indicate that the historical mechanised sublevel overhead benching method should be adopted in the tin and copper orebodies for an 80% recovery of mineralised ore from new stoping areas, and 50% from old stoping areas and allow for 5% dilution.

Tungsten mineralisation can be recovered via low cost excavation of large stopes for an 80% recovery of mineralised ore and allow for 5% dilution.

The existing decline and significant portion of the underground development will be dewatered over a period of 15 months and then refurbished, with waste generated from mine development dumped into stope voids.

Additional return airways will be added to take exhaust from the deeper levels of the mine and connect with the main exhaust shafts already in place.

Rubber-tyred loaders and trucks will haul ore via a single access decline and employ refurbished lateral access developed during historic mining, and feed ore into the proposed Stage Two Process Plant.

Tin recovery is estimated at 70% to produce a concentrate grade of 60% tin and copper recovery of 60% to produce a concentrate grade of 20% copper.


STAGE THREE OPEX AND CAPEX ESTIMATES

AMC Consultants used benchmark data from similar underground mining operations using mining contractors to estimate average life of mine mining costs of A$55 per tonne for tin and copper ore and A$50 per tonne for tungsten ore.

Processing operating cost for fresh tin and copper ore estimated at A$12.55 per tonne, and fresh tungsten ore at $14.55 per tonne, with an additional A$1.00 per tonne for general and administration costs.

Development costs were estimated at a conservative A$3,000 per metre of new development and A$1,000 per metre to refurbish existing development.

The total capital cost, funded from Stage One and Two cash flows, for the redevelopment of the underground operation is estimated at A$28.3 million and includes A$7.5 million for an additional process circuit to produce ammonium paratungstate.

TIN MARKET

Over 50% of tin consumption is used for solder in electronics and electrical goods, 17% in tinplate and packaging and 17% in chemicals. The remainder is used in various applications, including float glass and alloys.
Roskill Information Services (Roskill) describes the tin market as currently oversupplied, but forecasts a return to a supply deficit, as it has been for six out of the last ten years, as demand growth outpaces a weakening supply growth.


GRAPH TWO: TIN SUPPLY VERSES DEMAND (ROSKILL 2015)

According to the World Bank, tin's reserves to production ration declined nearly 40% from 2000 to 2011, meaning that current production levels can only be sustained for about 19 more years.

The average Roskill price forecast of US$21,171 per tonne Sn is 4.8% below the average price for the past 5 years. The project is well placed to take advantage of the forecast deficit and higher prices forecast.

TUNGSTEN MARKET

Tungsten is a corrosion resistant, extremely dense, and high melt point metal that is highly sought for its mechanical and refractory properties that is used as an alloy to provide high strength and wear resistance for tools and parts in the automotive industry, industrial engineering, mining and road construction, aviation, energy oil and gas, health, agriculture and defence applications.

Tungsten pricing is based on a Metric Tonne Unit or MTU which is equal to 10 kilograms or 22 pounds, and is typically sold as an intermediate refined product known as ammonium paratungstate or APT that is sourced from scheelite and wolframite that accounts for about two thirds of global supply, with the balance sourced from the recycling of scrap.

China dominates global supply of primary tungsten with 84% of global mine production of 138,000 tonnes in 2013, and currently prohibits the export of tungsten concentrate that forces non-Chinese industrial consumption to rely on small mines scattered across the globe to underwrite supply, thus making Tungsten a strategic metal to consumers outside of China.

Tungsten demand is driven by China, which requires an additional 12,000 tonnes per year, Indian economic growth of 6%-7% and demand from Japan, which continues to dominate the high value global tool market.


GRAPH THREE: AMMONIUM PARATUNGSTATE PRICE FORECAST

POTENTIAL TIER 1 TUNGSTEN ASSET IN THE MAKING

While the Cleveland tin-copper orebody is a globally significant tin deposit, the tungsten porphyry deposit is a potential Tier 1 strategic metal asset in the making, double the grade of Wolf Minerals' (ASX:WLF) Hemerdon tungsten and tin project.

Hemerdon has a Total Measured + Indicated + Inferred Resource of 145.2 million tonnes at 0.15% tungsten and 0.02 tin. Wolf has a market cap of A$255 million.

By comparison, Elementos has a current tungsten initial inferred resource (2004 JORC) of 4.0 million tonnes at 0.3% tungsten. The tungsten bearing porphyry and quartz stock-work known as the Foley Zone has a known strike length of 300 metres, thickness of up to 300 metres, known depth of at least 900 metres, and remains open in all directions.

Proactive Investors notes that the tungsten resource exploration potential falls into a range of 24 – 60 million tonnes at 0.2% - 0.3%, for an additional 72,000 – 120,000 tonnes of tungsten.

The tungsten resource will require additional studies to define the grade and extent of the mineralisation and complete technical work for the addition of a conventional process circuit to produce ammonium paratungstate, with a currently assumed recovery rate of 70% tungsten.

TIMELINE WITH MAJOR CATALYSTS


GRAPH FIVE: TIMELINE FOR STAGES ONE, TWO AND THREE AT CLEVELAND

NEAR TERM PRICE CATALYSTS:

- Drilling program for open pit and underground tin, copper and tungsten resources 3Q of 2015 – 2Q of 2016.
- Feasibility Study for tailings project Q3 of 2015 – Q3 of 2016.
- Pre-Feasibility Study and ore reserve statement for open pit and underground mining 3Q of 2015 – Q4 of 2016.
- Funding for tailings project mid-2016.


VALUATION AND ANALYSIS

Elementos has completed Pre-feasibility studies on its Stage One tailings project and Scoping Studies on Stage Two open pit mining and Stage Three underground mining of tin and copper at Cleveland.

Given the momentum Elementos is developing at Cleveland; the robust financial returns of the stages of the project as forecast in the PFS, including low CAPEX and low OPEX and ability to generate cash returns at today’s prices, Proactive Investors believes that Elementos is an attractive investment proposition for a substantial cornerstone industry investor.

Given the path to production in 2016/17, we believe this is a possibility in the next 12 months – adding a price catalyst.

Proactive Investors estimates a 12 month price target of $0.033, based on a calculation of the value of Stage One reserve base and assuming capital funding is forthcoming.

This target does not include exploration upside from drilling of tin and tungsten targets in 2016, or include possible value from Stage Two or Stage Three – providing further share price upside.

As noted, the potential tin and copper extensions within the Cleveland mine have conceptual potential for an additional 20,000 – 110,000 tonnes of tin, with an additional Tier 1 tungsten asset in the making.

We therefore consider our valuation to be very conservative.


Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

 

Disclaimer

You understand and agree that no content published constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made.

However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

The contributors make every effort to ensure that the information and material contained in this report is accurate and correct and has been obtained from reliable sources. However, no representation is made about the accuracy or completeness of the information and material and it should not be relied upon as a substitute for the exercise of independent judgment. Proactive Investors does not accept any liability, including negligence, for any loss or damage arising from the use of, or reliance on, the material contained in this report.  There are general risks associated with any investment in securities. Investors should be aware that these risks might result in loss of income and capital invested.

WARNING: No recipients should rely on any recommendation (whether express or implied) contained in this document without obtaining specific advice from their advisers. All investors should therefore consider the appropriateness, in light of their own objectives, financial situation and/or needs, before acting on the advice.

DISCLOSURE:  Proactive Investors, its directors, associates, employees or representatives may not effect a transaction upon its or their own account in the investments referred to in this report or any related investment until the expiry of 24 hours after the report has been published.

]]>
Mon, 26 Oct 2015 13:00:00 +1100 https://www.proactiveinvestors.com.au/companies/news/153739/elementos-is-undervalued-on-staged-tin-and-tungsten-potential-at-cleveland-65261.html
<![CDATA[News - Elementos CEO: high grade tin, copper, tungsten at Proactive Luncheons ]]> https://www.proactiveinvestors.com.au/companies/news/153738/elementos-ceo-high-grade-tin-copper-tungsten-at-proactive-luncheons-64487.html Elementos Limited's (ASX:ELT) continues to make strides at its Cleveland tin-copper-tungsten project in Tasmania which could bring in an additional $90 million in pre-tax cash flows, according to a new study.

 

Tim McManus, chief executive officer, will present at Proactive's Sydney, Melbourne Investor Luncheons in September.

REGISTER TODAY by clicking on the links below:

Melbourne Investor Luncheon, Tuesday 22nd September.
   
Sydney Investor Luncheon, Wednesday 23rd September.

 

The integrated tailings-pit-underground operation would generate revenue of A$638 million over this time.

Significantly, positive cash flow from the stage 1 tailings operation would fund investment in stage 2 open pit in 2018. Positive cash flows from both these stages will then fund investment in stage 3 in 2021.

Cleveland is a low CAPEX project that would produce cash at today's prices. Whilst the tin-copper orebody is a globally significant tin deposit, the tungsten porphyry deposit is a potential Tier 1 strategic metal asset that is double the grade of Wolf Minerals' Hemerdon tungsten and tin project.

All infrastructure is in place at Cleveland including power, water, communication along with workforce and accommodation.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

]]>
Mon, 14 Sep 2015 13:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/153738/elementos-ceo-high-grade-tin-copper-tungsten-at-proactive-luncheons-64487.html
<![CDATA[News - Elementos hits paydirt at Cleveland, doubles tin tungsten mine life ]]> https://www.proactiveinvestors.com.au/companies/news/153737/elementos-hits-paydirt-at-cleveland-doubles-tin-tungsten-mine-life-64304.html Elementos Limited (ASX:ELT) has revealed underground operations would extend the Cleveland mine life in Tasmania by eight years, doubling the life of the project and adding an additional $90 million to the project’s pre-tax cash flows.

An integrated tailings-pit-underground operation would generate revenue of A$638 million over the 15-year mine life.

This has been revealed in an independent Underground Scoping Study by AMC Consultants. The mine is located at Luina, 60 kilometres from the port of Burnie in North-west Tasmania.

However, apart from the tin at Cleveland, there is also a significant tungsten asset. A 4 million tonne Inferred resources applied to the underground study is only a small part of a large porphyry of unknown extent.

It follows an earlier pre-feasibility study on reprocessing the tin-copper tailings from historical mining operations and an independent open pit scoping study on mining the near-surface, high-grade tin-copper resource.

The 15 year mine could be expanded with further exploration.

Significantly, the positive cash flow from stage 1 would fund the investment in stage 2 in 2018, and then the positive cash flows from both stages 1 and 2 fund the investment in stage 3 in 2021.

The underground study examined the technical and economic viability of mining and processing the previously developed tin-copper deposit and a separate tungsten deposit.

As such, the viability of the underground operation was assessed as an extension to the proposed tailings and open-pit operations with shared services, plant and infrastructure.

Elementos CEO Tim McManus said, “The results of this and other recent studies on the Cleveland deposits elevates Elementos to mine developer status.”

“The integrated financial analysis clearly demonstrates how our staged development strategy reduces up-front capital and maximises shareholder value. The integration of all three stages extends the projected mine life to over 15 years, and we have barely started exploring the potential of the Cleveland deposits.

"I am very confident that the drilling program planned to for early next year will add to our resource base, underpinning a long-life, globally significant tin deposit.” Mr McManus said.

“In addition to Cleveland’s significant tin potential, we also believe that Elementos has a globally significant tungsten asset in its own right. The 4 million tonnes of Inferred resources applied to the underground study is only a small part of a large porphyry of unknown extent.

With multiple historical drill intersections of greater than 150 metres grading 0.3% WO3, and open in all directions, we are eager to further explore and test the limits of this tungsten mineralisation.”

Underground infrastructure, orebody geometries and ground conditions are amenable to low-cost mechanised bulk mining with large machinery.

 

More detail

- Refurbishment of the existing 3.5 kilometre decline and 9.7 kilometres of the existing 25 kilometres of underground development minimises the required development capital.

Underground infrastructure, orebody geometries and ground conditions are amenable to low-cost mechanised bulk mining with large machinery.

Mining inventory of 1.9 million tonnes (Mt) at 0.61% tin (Sn) and 0.22% copper (Cu) and 1.7 Mt at 0.31% tungsten oxide (WO3).

Underground ore production peaks at 650,000 tonnes per annum, with potential capacity up to 900,000 tonnes per annum.

 

Analysis

Some salient points perhaps missed by some investors:

Cleveland is a low capital investment strategy which produces cash at today's prices. Whilst the tin-copper orebody is a globally significant tin deposit, the tungsten porphyry deposit is a potential Tier 1 strategic metal asset that is double the grade of Wolf Minerals' Hemerdon tungsten and tin project  which recently entered production and has a market cap of $298 million.

Cleveland has significant government and stakeholder support including approvals and a mining lease application is submitted.

The board and management of Elementos have a project delivery history.

All the infrastructure is in place at Cleveland including power, water, communication along with workforce and accommodation.

Elementos will drill and we expect there to be significant resource upside at Cleveland.

Elementos is on the path to becoming a mine developer. The current sub $7 million market cap valuation does not begin to do this justice.

 

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

 

]]>
Tue, 01 Sep 2015 12:31:00 +1000 https://www.proactiveinvestors.com.au/companies/news/153737/elementos-hits-paydirt-at-cleveland-doubles-tin-tungsten-mine-life-64304.html
<![CDATA[News - Elementos delivers economic boost to Cleveland tin-copper-tungsten mine ]]> https://www.proactiveinvestors.com.au/companies/news/153736/elementos-delivers-economic-boost-to-cleveland-tin-copper-tungsten-mine-64104.html Elementos Limited (ASX: ELT) has revealed results of an independent Open Pit Scoping Study at the company's Cleveland tin-copper-tungsten mine, located in north-west Tasmania, Australia.

The study is focussed on the second stage of its three stage development.

Production from the stage 2 high-grade open-pit mine is scheduled to start in FY2018, supplementing production from the stage 1 tin-copper tailings reprocessing operation, which is expected to commence operation in FY2017.

Highlights:

- Financially robust and technically low-risk project.

- Mining inventory1 of 600,000 tonnes at 0.50% tin (Sn) and 0.14% copper (Cu).

- Over 98% of the ore tonnes included in the mining inventory are in the Indicated Mineral Resource category.

- Five pits, with an average stripping ratio of 5.1, will be mined at a combined rate of 200,000 tonnes per year over 3 years.

- The incremental capital cost is estimated at A$6.6 million, comprising A$5.6 million for plant upgrades and A$1.0 million for site works and pre-production waste stripping.

- The capital requirements are fully funded by cash flow from stage 1 and, as such, stage 2 will not require external financing.

- The projected additional cash flow from the open-pit project is A$21 million (before tax).

- The project is cash flow positive at current tin and copper prices (2015 average price of US$16,657 per tonne tin and US$5,780 per tonne copper).

- The net direct cash cost (C1) of US$8,303 per recovered tonne of tin places the project in the bottom half of the industry cost curve.

The study, independently reported by AMC Consultants Pty Ltd (AMC), was based on the previously announced Mineral Resource3 of 0.8 million tonnes at 0.81% tin and 0.27% copper.

Tim McManus, CEO of Elementos, commented: “Following our recent, positive announcements on development of the stage 1 Cleveland Tailings Project, the stage 2 open-pit operation is expected to increase the before tax cash flow by over 37%.

"As such, this study provides a strong endorsement of our staged development strategy for the Cleveland deposits.
"Work is also continuing on the stage 3 underground operation, which has the potential to significantly expand the project cash flow and mine life.”

“Considering that the technical studies of the Cleveland deposits have been based only on the validated work of the previous mine operator, we are very confident that there is considerable exploration upside at Cleveland.

"When you consider the proven viability of tailings reprocessing and open pit mining, the exploration upside, the proximity of infrastructure, and positive environmental impacts, we believe Cleveland is a realistic, near-term, production asset and is well down the road to becoming a globally significant tin-copper-tungsten producer.”


Upcoming catalyst

- Underground Scoping Study before the end of August 2015.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

]]>
Thu, 20 Aug 2015 14:10:00 +1000 https://www.proactiveinvestors.com.au/companies/news/153736/elementos-delivers-economic-boost-to-cleveland-tin-copper-tungsten-mine-64104.html
<![CDATA[News - Elementos’ PFS firms Cleveland Tailings as viable, low cost project ]]> https://www.proactiveinvestors.com.au/companies/news/153735/elementos-pfs-firms-cleveland-tailings-as-viable-low-cost-project-63793.html Elementos (ASX:ELT) has completed a Pre-Feasibility Study that details development of the Cleveland Tailings Project would have a low-capital, low-cost profile that could rank it in lower half of comparable projects.

Given the bite sized forecast capital expenditure of A$21 million, the company are aiming to have the project in production in FY2017, making it the first low risk jurisdiction tin project developed globally in a number of years.

At current prices, the project, located in northwest Tasmania, is profitable and cash flow positive, indicating a robust project that trades through the cycles.

The study was independently reviewed by consultancy AMC Consultants Pty Ltd. As an outcome of the PFS, Elementos has also defined a maiden Ore Reserve of 3.7 million tonnes at 0.29% tin and 0.13% copper.

Under the PFS, the project is expected to deliver total revenue of A$143 million, NPV of A$34 million, IRR of 68% and a payback period of three years.

The revenues were based on a tin price forecast of US$ 21,171 per tonne from independent researcher, Roskill, along with a copper price forecast of US$6,900 per tonne from Citi Research.

Fully allocated costs (C3) are estimated at US$13,137 per recovered tonne of tin, including copper credits.

The tailings project is the first stage of an integrated strategy to development the extensive hard-rock resources at Cleveland.

Environmental and mining applications have been lodged and the company has every reason to believe that approval is likely given the significant government and stakeholder support to rehabilitate the legacies from historical mining.

Tim McManus, chief executive officer, commented:

“We are highly encouraged by the results of this Pre-Feasibility Study, which shows that the reprocessing of tailings is viable when based on conservative assumptions.

“We have also reviewed the project in the context of integrating its development with the hard-rock resources at Cleveland and believe there are very few tin projects globally that can offer a leveraged, low-capital, low-cost development such as Cleveland.

“With exploration upside and proximity to all necessary infrastructure and being located in one of the lowest risk jurisdictions in the world, we believe Cleveland will be highly attractive to potential partners wishing to join with Elementos in advancing the development of the Cleveland Mine.

“We are now looking forward to further developing stages 2 and 3 and realising a globally significant tin-copper-tungsten resource base.”


Analysis

Elementos has now delivered a Pre-Feasibility Study which demonstrates the viability of its Cleveland Tailings Project in northwest Tasmania, Australia.

With planned production in FY2017, that the project would be profitable and cash flow positive at current prices is significant, as this will encourage funding partners.

As would the fact that the project is located in a low-risk jurisdiction relative to other tin provinces.

The fully allocated cost (C3) is estimated at US$13,137 per recovered tonne of tin (including copper credits), placing the project in the bottom half of the ITRI C3 cost curve.

The operation is potentially low in capital expenditure with a potentially long life which could help fund an open pit operation, which in turn funds the refurbishment of over 11kms of underground development and 4kms of decline currently in place.

This is before Elementos has even drilled one hole, which could substantially increase size, scale and economics at Cleveland, which has 1/5 of the drilling of Renison.

Adding further interest, the separate underground tungsten deposit, accessible from the same existing underground development and decline, could add significant value.

The project has supporting infrastructure including power, water, and communications on site, along with roads transecting the site, providing access to ports and a skilled labour market.

Upcoming key catalysts:

- Scoping Study on open pit, September quarter 2015; and
- Scoping Study on underground, September quarter 2015.

PFS Findings:

The PFS on the tin and copper tailings project is based on an Ore Reserve of 11,000 tonnes of contained tin and 4,800 tonnes of contained copper.

Cleveland will process 650,000 tonnes of tailings per annum for a mine life of seven years.

This will produce a 51% tin concentrate with 47% metal recovery and a 18% copper concentrate with 31% metal recovery.

Over the life of the project, approximately 5,250 tonnes of tin in concentrate and 1,500 tonnes of copper in concentrate will be produced and sold.

Estimated revenue of A$143 million, net cash flow of A$39 million and NPV of $34 million are based on forecast life-of-mine average metal prices of US$21,171 per tonne tin from Roskill and US$6,900 per tonne copper from Citi Research.

Production is scheduled to commence in FY 2017.


Cleveland Project

The Cleveland Mine situated at Luina, about 60 kilometres from the port of Burnie, and was an underground tin and copper mine that was operated by Aberfoyle Limited between 1968 and 1986.

During the life of the Cleveland operations, Aberfoyle mined and treated 5.7 million tonnes of ore, producing approximately 24,000 tonnes of tin and 10,000 tonnes of copper in concentrate. Elementos has well over 7 million tonnes defined under JORC, today.

The historical mining produced a tailings legacy that Elementos proposes to reprocess as the first stage of its development strategy for the Cleveland Mine.

Subsequent stages will target development of the open pit and underground Resources.

The staged development strategy minimises up-front capital, with cash flow funding future stages.

Northwest Tasmania has well-developed infrastructure and a strong mining culture.

The site is linked to the port of Burnie and other major population centres on the northwest coast by sealed all-weather roads. Accessible power runs through the Cleveland mine site, and there is abundant water available for use.

Tasmania also offers a low-risk jurisdiction relative to other tin provinces throughout the world, with a stable and well-understood regulatory environment and encouraging state government.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

]]>
Mon, 03 Aug 2015 13:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/153735/elementos-pfs-firms-cleveland-tailings-as-viable-low-cost-project-63793.html
<![CDATA[News - Elementos banks R&D tax refund, progresses Cleveland Project ]]> https://www.proactiveinvestors.com.au/companies/news/153734/elementos-banks-rd-tax-refund-progresses-cleveland-project-63083.html Elementos (ASX:ELT) has received a tax rebate of A$97,000 under the Federal Government’s Research and Development Tax Incentive Scheme.

Under this Scheme, companies with a turnover of less than $20 million per annum are entitled to a cash refund of 45% of all eligible R&D activities in Australia.

Proceeds will be applied to progressing the development of Cleveland Project in Tasmania.

The refund relates to research and development activities for the Cleveland project during the period 1st July 2013 to 6th December 2013.   

It follows on the company receiving a tax refund of $273,000 earlier this month for the period from 7th December 2013 to 30th June 2014.

Elementos is progressing the reprocessing of tailings at the Cleveland Project, which offers a fast and inexpensive way towards cash flow.

This will be followed by open pit mining and redevelopment of the Cleveland underground tin, copper and tungsten mine.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

]]>
Wed, 24 Jun 2015 07:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/153734/elementos-banks-rd-tax-refund-progresses-cleveland-project-63083.html
<![CDATA[News - Elementos Limited appoints former Xstrata Coal chief geologist as CEO ]]> https://www.proactiveinvestors.com.au/companies/news/153733/elementos-limited-appoints-former-xstrata-coal-chief-geologist-as-ceo-62816.html Elementos Limited (ASX:ELT) has restructured its management as part of an initiative to reduce costs and reshape the business for the next phase of development.

The company has appointed chief operating officer Tim McManus as its chief executive officer, reflecting its commitment towards the development of the Cleveland tin-copper and tungsten mine in Tasmania.

Managing director Calvin Treacy will become a non-executive director and maintain an active role in the business.       

McManus has over 20 years of experience in mining and geology, including significant experience in project development.

He was formerly chief geologist with Xstrata Coal, regional manager with AMC Consultants, and managing Director of Scorpian Energy.

The changes reflect the company’s commitment to reducing costs whilst it finalises the Tailings Project Pre-Feasibility Study and other technical studies at Cleveland.

Other cost reduction measures include reducing non-executive director fees, outsourcing the company secretarial function and relocating the office premises.

“The cost reduction measures are an initiative aimed at maximising available resources for the Cleveland project and positioning the Company for future development success,” chairman Rick Anthon said.

“We thank Calvin for his efforts as managing director since the merger with Rockwell Minerals in 2013.

“We welcome Tim as CEO and look forward to the company’s ongoing development of the Cleveland Project, as we move towards production in 2016/17.”

Earlier this month, it received a Research and Development tax refund of $273,000 under the Federal Government’s R&D Tax Incentive Scheme for the period from 7 December 2013 to 30 June 2014.

The company is awaiting confirmation of a refund for the period 1 July 2013 to 6 December 2014.


Cleveland Tailings Project

The reprocessing of tailings is a fast way to generate cash for open pit mining, which will in turn provides the cash flow to redevelop the Cleveland underground mine.

The tailings resource is stored above ground on-site in two tailings dams. These contain a substantial quantity of recoverable tin and copper due in part to operational inefficiencies and technical limitations of tin processing whilst the mine was in operation between 1968 and 1986.

Capital expenditure and operating costs would be expected to be low in keeping with tailings reprocessing operations.



Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

]]>
Wed, 10 Jun 2015 07:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/153733/elementos-limited-appoints-former-xstrata-coal-chief-geologist-as-ceo-62816.html
<![CDATA[News - Elementos banks R&D refund, progresses Cleveland Project in Tasmania ]]> https://www.proactiveinvestors.com.au/companies/news/153732/-elementos-banks-rd-refund-progresses-cleveland-project-in-tasmania-62719.html Elementos (ASX:ELT) has received a Research and Development tax refund of $273,000 under the Federal Government’s R&D Tax Incentive Scheme.

Under this Scheme, companies with a turnover of less than $20 million per annum are entitled to a cash refund of 45% of all eligible R&D activities in Australia.

Elementos has a potentially fast track toward generating cash flow from reprocessing of tin, copper and tungsten tailings from the Cleveland Mine Redevelopment in Tasmania.

The company’s claim relates to R&D activities for the Cleveland Tailings, Hardrock and Underground Projects during the period 7 December 2013 to 30 June 2014.

The company is awaiting confirmation of a refund for the period 1 July 2013 to 6 December 2014.

The reprocessing of tailings is a fast way to generate cash for open pit mining, which will in turn provides the cash flow to redevelop the Cleveland underground mine.

The tailings resource is stored above ground on-site in two tailings dams. These contain a substantial quantity of recoverable tin and copper due in part to operational inefficiencies and technical limitations of tin processing whilst the mine was in operation between 1968 and 1986.

Capital expenditure and operating costs would be expected to be low in keeping with tailings reprocessing operations.

Cleveland plans to commence construction of the tailings reprocessing facility in 2016, with production to quickly follow.


Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

 

]]>
Wed, 03 Jun 2015 13:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/153732/-elementos-banks-rd-refund-progresses-cleveland-project-in-tasmania-62719.html
<![CDATA[News - Elementos Limited’s share price jump prompts ASX price/volume query ]]> https://www.proactiveinvestors.com.au/companies/news/107061/elementos-limiteds-share-price-jump-prompts-asx-pricevolume-query-107061.html Elementos Limited (ASX:ELT) has received a price and volume query from the ASX after its shares soared 67% to $0.01 from a low of $0.006 with an increase in trading volumes.

The stock last traded up 83% on the day at $0.011.

In response, the company said it was not aware of any reason not already released that could explain the recent trading in its securities.

Elementos noted that its shares are illiquid and the share price may move on trades of relatively small value.

The company has a clear pathway to production from the Cleveland Mine Redevelopment in Tasmania starting with tailings reprocessing, a fast and inexpensive way towards cash flow.

It plans to commence construction of the tailings reprocessing facility in 2016, with production to quickly follow.

This will be at a minimum mining rate of 650,000 tonnes of tailings per annum, or 900 tonnes of tin per annum and a mine life of seven years

It will be followed by open pit mining and redevelopment of the Cleveland underground tin, copper and tungsten mine, which could extend mine life beyond 20 years.

The staged development strategy minimises upfront capital and produces cashflow to fund future development.

Elementos expects to complete the Tailings Pre-Feasibility Study as well as the Open Pit and Underground scoping studies this month.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

]]>
Wed, 20 May 2015 16:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/107061/elementos-limiteds-share-price-jump-prompts-asx-pricevolume-query-107061.html
<![CDATA[News - Elementos drives towards production with Cleveland Mine redevelopment ]]> https://www.proactiveinvestors.com.au/companies/news/106634/elementos-drives-towards-production-with-cleveland-mine-redevelopment-106634.html Elementos (ASX:ELT) has a clear pathway to production from the Cleveland Mine Redevelopment in Tasmania starting with tailings reprocessing, a fast and inexpensive way towards cash flow.

This will be followed by open pit mining and redevelopment of the Cleveland underground tin, copper and tungsten mine.

The staged development strategy minimises upfront capital and produces cashflow to fund future development. The reprocessing of tailings is a fast way to generate cash for open pit mining, which will in turn provides the cash flow to redevelop the Cleveland underground mine.

It plans to commence construction of the tailings reprocessing facility in 2016, with production to quickly follow.

This will be at a minimum mining rate of 650,000 tonnes of tailings per annum, or 900 tonnes of tin per annum and a mine life of seven years. There is potential to extend mine life beyond 20 years as the addition open pit and underground JORC Resources come into production.

The tailings resource is stored above ground on-site in two tailings dams. These contain a substantial quantity of recoverable tin and copper due in part to operational inefficiencies and technical limitations of tin processing whilst the mine was in operation between 1968 and 1986.


Open Pit Mining

Elementos will then move to open pit mining with the company recently defining a JORC Indicated Resource of 828,000 tonnes at 0.81% tin and 0.27% copper.

This project provides an important link between the tailings project and the underground redevelopment plan.

Scoping and Exploration Target Studies are now planned to investigate the synergies between the three Cleveland projects, and to determine the optimal development pathway.

The Exploration Target Study will build on announced Exploration Targets of 20,000 tonnes to 110,000 tonnes of tin, and 72,000 to 120,000 tonnes of tungsten.

This potential to expand the open pit and underground resources and provide drill ready targets, positions the company to continue to build value for its shareholders.


Cleveland Underground Redevelopment

Both the tailings and open pit mining projects will generate the cash flow Elementos requires to redevelop the Cleveland underground tin, copper and tungsten mine.

Recently, the company lodged the mining lease application that covers areas required for all necessary infrastructure to support mining operations.

During the 18 year life of the Cleveland operation, Aberfoyle mined and processed 5.7 million tonnes of ore and produced approximately 24,000 tonnes of tin and 10,000 tonnes of copper in concentrate.

Elementos has over 6.6 million tonnes of underground defined resources.

The mineralisation in the Cleveland mine is principally of two styles: tin and copper bearing semi-massive sulphide lenses replacing limestone, similar to Renison, and a tungsten bearing porphyry quartz stock-work.

Tin occurs as cassiterite and copper occurs principally as chalcopyrite. The tungsten occurs as wolframite.
 
Resources have been estimated for tin and copper in the tin and copper bearing lenses, tungsten in the tungsten bearing stock-work, and tin and copper in tailings.

Cleveland’s mine geology lent itself to low cost mining techniques, and when in operation, Cleveland was considered ‘state of the art’, being one of the first tin mines to utilise trackless mining technologies.

Aberfoyle mined ore from open-stopes between levels, which were 15 metres apart vertically. Ground conditions were such that stopes did not require filling, indicating excellent ground conditions.

Mine development extends to 400 metres below the surface with the underground decline and drives still in place. This provides low cost access for the company to the existing tin, copper and tungsten mineralisation.

The Cleveland tin and copper deposit is open at depth and along strike. The tungsten bearing porphyry has only been estimated down to 850 metres, providing considerable scope to increase the tungsten Mineral Resource below this level.


Analysis

With a clear development strategy defined, Elementos is achieving milestones on the road to production, and is on track to execute its business plan with a focused and experienced management team.

The company’s staged development strategy starts with the reprocessing of tailings providing a fast and inexpensive path towards cash flow, before moving to low cost open pit mining.

This will in turn lead to the redevelopment of the Cleveland underground tin, copper and tungsten mine, which requires little capital expenditure.

There is set to be significant news flow given near term price catalysts, providing investors with an inexpensive potential cash flow generating stock. 

Upcoming Price Catalysts:

- Completion of Tailings Pre-Feasibility Study May 2015;
- Open Pit Scoping Study May 2015;
- Underground Scoping Study May 2015;
- Mining Lease Approval Process 4Q2015;
- Environmental Approval 1Q2016;
- Tailings Project Feasibility 3Q2016; and
- Tailings Tin, Copper Production 4Q2016.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

]]>
Tue, 12 May 2015 07:10:00 +1000 https://www.proactiveinvestors.com.au/companies/news/106634/elementos-drives-towards-production-with-cleveland-mine-redevelopment-106634.html
<![CDATA[News - Elementos Limited banks research and development tax refund ]]> https://www.proactiveinvestors.com.au/companies/news/153731/elementos-limited-banks-research-and-development-tax-refund-61314.html Elementos Limited (ASX:ELT) has received a tax refund of about $248,000 under the Federal Government’s Research and Development Tax Incentive Scheme.

This relates to the company’s claim for activities carried out at the Cleveland Tailings and Underground Projects in Tasmania during FY2012.

It is currently awaiting confirmation of a refund for FY2014, which is anticipated to be slightly larger.

Refunds will be used to further progress the company’s plans to commence construction of the tailings retreatment facility in 2016, with production to quickly follow.

Earlier this month, it submitted the Development Proposal and Environmental Management Plan for the first stage of the Cleveland Mine Redevelopment.

The DPEMP covers the reprocessing of the Cleveland mine tailings, and the dewatering of the Cleveland underground tin, copper and tungsten mine.

Planned production will be at a minimum mining rate of 650,000 tonnes of tailings per annum, with a mine life of approximately seven years.

This has the potential to extend beyond twenty years as the open pit and underground Mineral Resources come into production.



Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

]]>
Wed, 18 Mar 2015 14:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/153731/elementos-limited-banks-research-and-development-tax-refund-61314.html
<![CDATA[News - Elementos banks research and development tax refund ]]> https://www.proactiveinvestors.com.au/companies/news/153730/elementos-banks-research-and-development-tax-refund-60885.html Elementos (ASX:ELT) has received a tax refund of $63,000 under the Australian Government’s Research and Development Tax Incentive Scheme for the 2012/13 financial year.

The claim relates to activities for its Cleveland Tailings and Underground Projects in Tasmania.

Elementos is also awaiting confirmation of refunds for the 2011/12 and 2013/14 financial years, which are anticipated to be substantially larger.

Refunds will be used to progress the company’s plan to enter into production in 2016.

The company’s focus is on delivering its Cleveland tailings project. It expects to start the Definitive Feasibility Study in the first half of 2015.



Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

]]>
Tue, 24 Feb 2015 15:00:00 +1100 https://www.proactiveinvestors.com.au/companies/news/153730/elementos-banks-research-and-development-tax-refund-60885.html
<![CDATA[News - Elementos raises funds for Tasmania tin, copper and tungsten projects ]]> https://www.proactiveinvestors.com.au/companies/news/153729/elementos-raises-funds-for-tasmania-tin-copper-and-tungsten-projects-56786.html Elementos (ASX:ELT) has raised $1.52 million from an oversubscribed rights issue to fund advanced development activities at the Cleveland tin-copper and tungsten projects in Tasmania.

The rights issue of 126 million shares priced at $0.012 each adds to the earlier private placement of 48 million shares to raise $0.58 million.

Short-term high priority activities include:

- Finalisation of the environmental permitting for the tailings development and mine dewatering, as a precursor to applying for a Mining Lease;
- Further metallurgical test work on the tailings resource for process sheet optimisation, engineering and design;
- Technical appraisal of the Cleveland hard-rock resource to continue with an emphasis on defining open-cut mineable resources;
- Advancing strategic relationships with industry players that may provide marketing, financial and technical synergies with the Cleveland tin and tungsten deposits; and
- Evaluation of the Foley tungsten resource within the Cleveland Project.

Elementos had completed the acquisition of the remaining 50% interest in the Cleveland project in July this year for a cash payment of $0.15 million and the issue of 29 million Elementos shares.

Cleveland has an Exploration Target of between 3 million and 16 million tonnes at 0.6% to 0.7% tin and 0.2% copper.

It also hosts an Indicated Tailings Resource of 3.85 million at 0.3% tin as cassiterite and 0.13% copper.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

]]>
Thu, 07 Aug 2014 18:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/153729/elementos-raises-funds-for-tasmania-tin-copper-and-tungsten-projects-56786.html
<![CDATA[News - Elementos Limited granted pre-open status ]]> https://www.proactiveinvestors.com.au/companies/news/153728/elementos-limited-granted-pre-open-status-55128.html Elementos Limited (ASX:ELT) has been granted a trading halt by the ASX this morning, with its shares placed in pre-open.

ELT requested the halt pending a clarification announcement.

The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Monday 26th May 2014.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

]]>
Thu, 22 May 2014 10:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/153728/elementos-limited-granted-pre-open-status-55128.html
<![CDATA[News - Elementos Limited defines further tin-copper potential in Tasmania ]]> https://www.proactiveinvestors.com.au/companies/news/153727/elementos-limited-defines-further-tin-copper-potential-in-tasmania-54073.html Elementos Limited (ASX: ELT) could be on track to increase existing JORC Resources at the Cleveland Project in Tasmania.

Consultants from MiningOne have identified an Exploration Target tonnage has been defined in a range of 3 to 16 million tonnes, containing between 20,000 and 110,000 tonnes of tin metal.

The grade range estimate is from 0.6% tin and 0.2% copper to 0.7% tin and 0.2% copper, and is in-line with already defined resources.

This could lift the existing JORC Indicated and Inferred Resource of 48,000 tonnes of tin and represents the first step towards extending the project’s mine life and defining target areas for future drilling.

The company is working with MiningOne to evaluate a Production Target based on this Exploration Target for incorporation in the PFS, which is nearing completion.

As part of the study, drilling priorities have been established, some of which are from surface and others are from underground.

At this stage, it is not the company’s intention to commence a new drilling program in the pre-development phase to define any new resources.

It is intended any new drilling program would be undertaken during the operational phase using cash generated from operations.

Northwest Tasmania is a world-class minerals district and host to significant historic lead-zinc-silver mines including Hellyer, Roseby and Que River, all within 40 kilometres of the Cleveland tenements.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

]]>
Wed, 02 Apr 2014 18:40:00 +1100 https://www.proactiveinvestors.com.au/companies/news/153727/elementos-limited-defines-further-tin-copper-potential-in-tasmania-54073.html
<![CDATA[News - Elementos assays surface rock samples of 4.1kg/t silver and 26.5% zinc in Tasmania ]]> https://www.proactiveinvestors.com.au/companies/news/153726/elementos-assays-surface-rock-samples-of-41kgt-silver-and-265-zinc-in-tasmania-53488.html Elementos Limited (ASX: ELT) should trade significantly higher today after revealing very high grade silver, zinc and lead results from maiden surface rock sampling at Godkin and Cleveland South, Tasmania.

Assays measured up to 4.11 kg per tonne silver, 26.5% zinc and 7.4% lead, with other results over 2.5kg per tonne silver and 22.5% zinc.

A trial soil sampling program has now commenced at Godkin and Cleveland South, followed by induced polarisation surveys to define the structures that host the mineralisation and delineate potential mineralised areas for drill targeting.

North-west Tasmania is a world-class minerals district and host to significant historic lead-zinc-silver mines including Hellyer, Roseby and Que River, all within 40 kilometres of the Cleveland tenements.

Whilst the company's priority focus remains development of the Cleveland tin project, the new zones add an extra dimension to its tenement portfolio in the district.

The Godkin silver-lead-zinc zone, located two kilometres south-east of the Cleveland tin mine, includes a number of small underground mines scattered over two kilometres along a structural trend.

The geological environment in the Godkin Zone is encouraging as there is a north-west trending belt of limestones in contact with sandstone, all intruded by small granite stocks, amenable for carbonate replacement style of mineralisation.

This is significant because carbonate replacement mineralisation tends to generate larger, higher grade mineralised bodies.

These are exciting new results for Elementos, capped at $9 million, and expand the companies upside potential considerably.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

]]>
Fri, 07 Mar 2014 13:40:00 +1100 https://www.proactiveinvestors.com.au/companies/news/153726/elementos-assays-surface-rock-samples-of-41kgt-silver-and-265-zinc-in-tasmania-53488.html