Elementos Ltd goes all out to capitalise on strong tin market and high prices

() () (FRA:9EM) is taking big steps to capitalise on strong tin market fundamentals, including high prices, through exploration, development and production of high-grade tin projects in stable jurisdictions.

The company’s portfolio comprises near-term development and exploration assets, including the Oropesa Project in Spain, one of the world’s largest undeveloped, open-cut mineable tin deposits.

Another asset is the Cleveland Project in Tasmania, a large resource of tin-copper amenable to open cut and underground mining techniques.

Following the completion of an economic study for Oropesa, the company has been seeking to further optimise potential financial returns.

The company believes that Oropesa represents an opportunity to create a value-uplift potential as the project is advanced towards development.

Tin prices

The company’s efforts to rapidly advance Oropesa have been bolstered by a surge in prices, which enhance project economics.

Tin prices have been consistently improving over the last 12 months, rising more than 28%, and reached a 10-year high on April 19, 2021, at the London Metal Exchange (LME).

Currently, the prices are hovering around US$27,000 per tonne.

According to industry insiders, tight global supplies, particularly of refined tin, are struggling to match an increase in demand.

This is driven by increased use in downstream markets particularly from auto component makers, electronics and renewable energy industry and battery manufacturers.

Supply shortages are also due to falling production from some prominent mining districts, exacerbated by congestion and delays resulting from the impact of COVID-19 on international logistic systems.

Drilling at Oropesa project

Oropesa is the flagship and a diamond drilling (DD) exploration program that started in the December quarter of 2020 is continuing.

The company plans to drill 48 diamond holes for a total of about 5,000 metres with 31 holes completed to date for a total of 3,710 metres and assays received for 19 of the completed holes.

This program follows the release of the Oropesa Economic Study, which positioned the project as a low-cost, globally significant new tin development with a prospective annual production of 2,440 tonnes of tin-in-concentrate over a 14-year mine life. 

The economic study was completed with a tin price of US$$19,750 per tonne.

Objective of drilling

Elementos’ principal objective for the drilling is to increase the confidence of previously reported inferred resources, to the indicated classification and to confirm near-surface, possibly fault-controlled mineralisation that is not included in the 2017 mineral resource estimate.

Besides this, the company is testing for additional near-surface mineralisation from exploration targets outside the estimate and identified from historic Induced Polarisation (IP) geophysical survey anomalies.

It is also aiming for a new mineral resource estimate which is planned to form the basis of a wider mine planning and optimisation program.

This is intended to optimise the project’s annual production rate and mine life as well as to reduce the overall waste-to-ore stripping ratio.

Feasibility studies

This work will assist in preparations for a feasibility study and the company is confident that it will present an opportunity to extract more value from the project and minimise risks.

These additional studies will include advancing resubmission of the project’s environmental authority application and progressing engineering studies for the process plant and site infrastructure, including tailings dam design.

The company has engaged an experienced Spanish project management team, Soluciones, Concentradores Y Procesos de Ingeniería, SL, to oversee its activities at…