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Elementos Ltd (ASX:ELT) has released a definitive feasibility study and maiden ore reserve statement for its Oropesa tin project in Spain, with the former underscoring the project’s robustness in both financial and technical terms.
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The DFS was built around production of 1.4 million tonnes per annum through open-cut mining, for a yield of 3,405 tonnes of contained tin per year, in the form of tin ingot.
This is expected to run for a mine life of 12 years, with a life of mine (LOM) all-in-sustaining-cost (AISC) of US$15,000 per tonne of tin metal.
The capital costs are now estimated at €149 million (A$260M), including a 10.4% contingency. With the study assuming a LOM tin price of US$30,000/t, it has confirmed a pre-tax ungeared net present value of A$270M, a pre-tax internal rate of return (IRR) of 26%, and a payback period of 2.7 years.
Alongside this, Elementos told investors the maiden ore reserve for Oropesa was estimated at 15.9Mt at 0.36% tin, with this being based on a previously published mineral resource estimate of 19.6Mt at 0.39% Sn.
Development activity for the project – which is built around a vertically integrated mine-to-metal smelting operation – continues to progress, with Environmental and Mining Licence permit applications recently lodged.
“I would like to congratulate the Elementos/Wave International team, the specialist consultants and the Spanish contractor community on the production of this top-class definitive feasibility study,” chairman Andy Greig said.
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“My fellow directors and I have undertaken a deep-dive review of this work product, and I am pleased to report we’ve found the DFS to be of great substance; prudently conservative; comprehensive and robust.”
Elementos shares moved up today for a 3.4% gain in value.
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