Elementos Reports Positive Results from Open Pit Scoping Study at Cleveland Tin-Copper-Tungsten Mine

Elementos (ASX:ELT) announced the results of an independent open pit scoping study, the second stage of a three-stage development at the Cleveland tin-copper–tungsten mine.
Highlights:

• Financially robust and technically low-risk project
• Mining inventory of 600,000 tonnes at 0.50 percent tin and 0.14 percent copper
• Over 98 percent of the ore tonnes included in the mining inventory are in the indicated mineral resource category
• Five pits, with an average stripping ratio of 5.1, will be mined at a combined rate of 200,000 tonnes per year over three years
• The incremental capital cost is estimated at AU$6.6 million, comprising AU$5.6 million for plant upgrades and AU$1 million for site works and pre-production waster stripping
• The capital requirements are fully funded by cash flow from stage 1 and, as such, stage 2 will not require external financing
• The projected additional cash flow from the open-pit project is AU$21 million (before tax)
• The project is cash flow positive at current tin and copper prices
• The new direct cash cost of US$8,303 per recovers tonne of tin places the project on the bottom half of the industry cost curve

Tim McManus, CEO of Elementos, commented:

Following our recent, positive announcements on development of the stage 1 Cleveland deposits have been based only on the validated work of the previous mine operator, we are very confident that there is  considerable exploration upside at Cleveland. When you consider the proven viability of tailings reprocessing and open pit mining, the exploration upside, the proximity of infrastructure and positive environmental impacts, we believe Cleveland is a realistic, near-term production asset and its well down the road to becoming a globally significant tin-copper-tungsten producer.

Click here to read the full Elementos (ASX:ELT) press release.