Aus Tin Mining Ltd (ASX:ANW) will undertake an exploration program targeting down dip extensions of historic workings at the Mt Cobalt and the Smith Mine located west of Gympie in Queensland.
Based on the steeply dipping cobalt enriched master‐shear zone evident from surface, the mineralised zone is interpreted to extend beyond the reported depth of 25 metres for the historic workings.
The company will drill test for likely extensions of the mineralised zone. Aus Tin had reported up to 1.66% cobalt last month from rock chip samples taken from within the target area.
In 2014-2015, cobalt consumption was estimated at 90,150 tonnes, with about 49% of all cobalt used in rechargeable batteries.
During last month, cobalt price has strengthened to over US$26,000 per tonne as markets recognise the importance of cobalt as a raw material for energy storage and generation, specifically electric vehicles.
Aus Tin Mining becomes second ASX listed tin producer
Earlier this week, Aus Tin commenced the production of tin concentrate at the Granville Tin Project in Tasmania, elevating the company to only the second tin producer listed on the ASX.
Since completing the acquisition of the project less than four months ago, the company has re-commissioned the processing plant and has commenced the re-treatment of tailings.
This milestone occurs against the backdrop of improving tin price (currently US$18,270 per tonne) and declining global tin stocks. Since the start of 2016, tin prices have risen about 25%.
Aus Tin’s share price has doubled since the beginning of this month.
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