Name and Location
Cleveland tin mine project, Tasmania.

Client
Elementos.

Project Description
The Cleveland project occurs within exploration licence EL7/2005, which covers 18 km2 and includes the historical mine, the tailings resources in tailings dams 1 and 2, as well as the area occupied by the surface infrastructure for the former operations.

A prefeasibility study (PFS) completed on the Cleveland project has demonstrated that the Cleveland tailings retreatment project and underground mine have a positive net present value and internal rate of return, with low capital intensity, compared to similar projects. The tailings retreatment project will provide Elementos with a short lead time to production and a cash flow base, while providing optionality and flexibility during the development of the underground mine.

The PFS proposes a staged development for the project.

The chosen mining method for the Stage 1 tailings reclamation is excavator to pump-box mining. This method offers flexibility so that alternative excavation methods can be applied, depending on circumstances, which limits the requirement for infrastructure development such as roads and stockpile areas.

Stage 1 is expected to produce about 1 000 t/y of tin and 300 t/y of copper in concentrates.

Stage 2 will use the existing decline and mine development, where possible, to access ore.

The underground mine will use the existing decline and mine development where possible, significantly reducing capital expenditure. The mine workings are currently flooded and the PFS includes the costs of dewatering and decline refurbishment.

The current decline provides access from the surface to level 26 and will require rehabilitation. Below level 26, the decline will need to be extended for a further 250 m vertically to 750 m.

This has been allowed for the financial modelling for the PFS.

Stage 2 is expected to produce 1 900 t/y of tin and 700 t/y of copper in concentrates.

Value
Preproduction capital for Stage 1 is estimated at A$23.9-million.

Preproduction capital for Stage 2 is estimated at A$43.8-million.

Duration
Elementos is targeting the start of construction in 2015, with first production in 2016.

Latest Developments
A bankable feasibility study is expected to start immediately.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Elementos, tel +61 7 3221 7770, +61 7 3221 7773 or email admin@elementos.com.au.