Coronavirus crisis claims another scalp

CONSOLIDATED Tin Mines’ week, already marked by the end of its active pursuit of the Chillagoe assets, has taken a turn for the worse with the decision to put the Mount Garnet mine and Surveyor project onto care and maintenance.
Coronavirus crisis claims another scalp Coronavirus crisis claims another scalp Coronavirus crisis claims another scalp Coronavirus crisis claims another scalp Coronavirus crisis claims another scalp

The Mt Garnet mill will be mothballed again.

Haydn Black

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The operations were close to ending a two-year refurbishment and redevelopment program, and achieving target production.
Citing public health concerns surrounding the COVID-19 pandemic, the junior miner said all staff would be stood down without pay today - aside from those required during the care and maintenance period.
The miner said only the Dry River South mine, where work had been underway to rehabilitate the decline and mine intermediate levels, was expected to return to operation.
ConsTin had expected to reach an annualised rate of 200,000tpa from Mt Garnet Deeps and 300,000t from Dry River South this year.
The Mount Garnet mine recovered some 40,000t of remnant ore last quarter, with the transition to the Deeps area this quarter.
The refurbished 1Mtpa Mt Garnet processing plant will continue to only operate on a campaign basis when work resumes.
The miner has offtake agreements with Glencore for 100% for all copper, zinc and lead concentrates produced.
Exploration around Dry River South, the Surveyor project, will also be halted.
It is a dramatic turn in fortunes for the company, which expected Chillagoe to increase production significantly.
The lower level of operations means many staff are unlikely to be reinstated at the end of the coronavirus crisis.
When that happens remains uncertain given the constantly changing Commonwealth and Queensland guidelines, the miner said.
Yesterday, Queensland was one of many states to seal its borders to non-essential travel, and last night a range of additional restrictions were imposed nationwide by Canberra.
The company started the year with around A$500,000 cash and facilities of $10.5 million.
ConsTin shares have been suspended for most of the past three years, and last traded at 12.5c on February 26, with the company worth $84.5 million.
They will remain suspended until it completes its December half accounts.