The study has confirmed the viability of an upsized 1.25 million tonne per annum development at what it calls "one of the world's largest undeveloped, open-cut mineable tin deposits", which the study suggests can deliver 3350t of contained tin to the market each year for 13 years.

 

Based on a tin price of US$32,500/t, below the current $42,556/t in London or Shanghai spot price of $54,000, Oropesa has a post-tax net present value of A$198 million, a pre-tax internal rate of return of 46%, and a payback of around 2.5 years.

 

The $86 million development would generate gross revenue of $108 million per annum, based on all-in sustaining costs of $18,607/t.

 

Running the numbers at the current London Metal Exchange price boosts NPV to $586 million, or $944 million using the Shanghai Futures Exchange spot tin price, and adding several years of mine life.

 

The optimised study builds on a 2020 economic study that ran the numbers for a 750,000tpa operation, delivering a $92 million NPV.

 

With the project looking good to mine 15.5Mt of 0.37% tin using a $30,000/t pit shell, the company is advancing to a definitive feasibility study, and chasing its environmental and mining licence applications.

 

Last month it was granted the equivalent of major project status by the regional Andalucian government to help streamline regulatory assessment processes, one of seven projects to be recognised as significant. 

 

The new study was based on a redesigned mine that complies with all known regulations, with a focus on minimising disturbed areas and environmental impacts.

 

Oropesa would target sales to tin refineries in Asia at a time of expected deficits as mature mines produce mainly lower grade material.

 

Late last year, Elementos substantially boosted the tonnage, shallowness, and geological confidence in the total resource of 18.86 million tonnes grading 0.4% tin, up 50% on the 2018 estimate.

 

The company started the year with A$3.9 million cash

 

Elementos shares were steady at 82.5c this morning, just shy of its 12-month peak of 85c, valuing the company at $134 million.