Elementos (ASX:ELT) has demonstrated the technical and economic viability of the Oropesa Tin Project in Spain after completing a Definitive Feasibility Study (DFS).
The DFS, based on a 1.4 million tonnes per year open-cut mining project, outlines Oropesa will produce an average 3,405 tonnes of contained tin per year, as tin ingot, for the European tin market.
Elementos, which has a market capitalisation of $20.54 million, says Oropesa has an estimated 12-year mine life with an all-in sustaining cost of US$15,000 ($23,731) per tonne tin.
The DFS capital costs are now estimated at US$156 million including 10.4% contingency.
Based on the London Metal Exchange (LME) reference tin price of US$30,000 per tonne over the life-of-mine, the DFS confirms pre-tax net present value (NPV) of $270 million and an internal rate of return (IRR) of 26% with a payback period of 2.7 years.
Meanwhile, based on the spot LME tin price of US$38,575 per tonne over the life-of-mine, the DFS confirms a pre-tax NPV of $587 million and an internal rate of return of 42% with a payback period of 1.7 years.
Non-executive Chairman Andry Greig says the DFS forms the basis on which to progress an offtake for Oropesa, as well as financing and a final investment decision.
“You will note that the NPV8% of the project has increased by 23% from the Scoping Study,” Greig says.
“At a conservative tin price of US$30,000/tonne and a discount rate of 8%, the pre-tax NPV8% is now over $270 million compared to the Scoping Study NPV8% of $220 million. The payback period is now 32 months. All of these numbers are appropriately conservative.”
Elementos has also delivered a maiden ore reserve estimate of 15.9 million tonnes @ 0.36% tin, based upon a previously reported resource estimate of 19.6 million tonnes @ 0.39% tin.
This work follows after Elementos’ Spanish subsidiary Minas De Estaño De España submitted the primary licence documents for the Oropesa Project.
The submitted documents, which will be assessed by the Andalucian Administration, are key requirements for an environmental licence and mining licence to be authorised. Both of these licences are required to construct and operate the Oropesa Tin Mine.
Managing Director Joe David says the lodgement is considered a major milestone for the project’s maturation from developer to operating miner.
“The permitting submissions are a substantial piece of work and are aligned with all the feedback and understanding we have gained from our recent interactions with the key Andalucian Government departments,” David says.
David adds that Oropesa remains a member of the Andalucian Government’s Project Accelerator Unit which provides further government support to ensure the execution of selected mining projects.
“We look forward to working closely with senior government officials whilst the licence submissions are assessed, as the Oropesa Tin Project is primed to play a critical role in revitalising the economy of the local towns and the entire Guadiato Valley and Northern Cordoba region,” he says.
The company says the Oropesa Project, covering 13km2, is one of the “world’s largest undeveloped, open-cut tin deposits and is the only tin project being actively developed within the European Union.”
Elementos is a tin-focused developer with two projects, Oropesa and Cleveland, in Spain and Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Elementos
