Consolidated Tin Mines Gets Green Light for Definitive Feasibility Study on Mount Garnet Project in Queensland

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Researched by Industrial Info Resources Australia (Perth, Australia)--Consolidated Tin Mines (ASX:CSD) (Cairns, Queensland) has announced that it will be advancing its Mount Garnet project. The results of the pre-feasibility study were positive, and the company plans to perform a definitive feasibility study (DFS) immediately.

The company began work on the project, located approximately 165 kilometres west of Cairns, in 2008. Earlier this year, a strategic piece of the project was completed by Consolidated Tin's cornerstone investor Snow Peak Group of China. Snow Peak finalized the acquisition of the central processing plant for Consolidated Tin. This recent announcement puts the company on track to have its first tin production as early as mid-2014, pending completion of the feasibility study.

A significant reduction in capital investment required for the overall operations was identified in the pre-feasibility study. The capital investment required is approximately $71.4 million, which was predicted based on the robust economics of the project. It is expected to be paid back within two years.

Key statistics from the study indicate that the company will be looking to process approximately 1 million tonnes per annum from its open cut mines. Approximately 2,944 tonnes per annum of their primary product, tin in concentrate, will be extracted. The company also will produce 234,970 tonnes per annum of iron in concentrate, along with 53,860 tonnes per annum of fluorite in concentrate. Based on this amount, the estimated lifespan is approximately nine years for the current deposits.

"I am extremely pleased to update the market on our prefeasibility study, which provides the critical reassurance to progress the development of the Mount Garnet Tin Project," said Ralph De Lacey, the chairman and managing director of Consolidated Tin Mines.

The pre-feasibility study is an improvement on the scoping study statistics, and De Lacey mentioned that further modifications could be made to the economics, which may result in an even more favourable outcome in future studies.

"Another important outcome of the pre-feasibility study was the identification of a number of opportunities for financial improvement, with further design optimization of mining and processing stages, and we have our sights clearly set on realising these opportunities through the DFS process," De Lacey said.

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