metals x ..more positive media coverage!

By: Esmarie Swanepoel
11th January 2013

PERTH (miningweekly.com) - ASX-listed Metals X on Friday reported that operations at its Tasmanian tin project had improved significantly over the last quarter, with production levels higher and operating costs lower.

Responding to an overnight media report, Metals X noted that the Renison tin project, which is 50% held by the company, produced some 1 800 t of tin in concentrate, from 163 213 t of ore during the quarter ended December.

Cash operating costs were significantly lower compared with the previous quarter, at A$12 650/t.

Metals X noted that the Renison project had recorded strong quarter-on-quarter increases in productivity over the past nine months, with the completion of dewatering and the refit and refurbishment of the North Renison decline opening the whole mine for ore production for the first time under Metal X ownership.

Meanwhile, Metals X on Friday also reported that the definitive feasibility study on its Central Murchison Gold project, had concluded that the project could sustain a long-life operation.

The project was expected to produce some 95 000 oz/y over an 11-year life-of-mine, from a total mineral resource of 61.2-million tons, grading 2.52 g/t gold, and at a preproduction capital cost of some A$117.1-million.

The Central Murchison project was estimated to have a net present value of some A$141.9-million and would generate a life-of-mine revenue of A$1.76-billion and earnings before interest, tax, depreciation and amortisation of A$692-million.

“We are pleased with the results of this study. It provides a strong base option to commercialise the project and one that is very achievable both financially and technically for the company,” said Metals X executive director and CEO Peter Cook.

“The Murchison region is alive again with at least six companies electing to go it alone, with the development or restart of gold operations on projects with moderate lives and, in most cases, relatively high costs.”

Cook noted that Metals X intended to study the benefits of consolidating ore processing and development assets in the region, before embarking on a decision to commit to its own standalone processing facility.

“We believe the Central Murchison gold project stands out against most of these projects in terms of the overall mineral resource size and average grade. The heart of the Central Murchison project is higher-grade proved underground mines, which, when established, provide for more sustainable production.”

He added that despite the final design decision, the Metals X gold division was determined to become a gold producer and to build a substantial gold division to complement the strong cash flow generated at the Renison tin operations.