Jan 31st 2018 Quarterly
Granville
During the quarter the Company made further changes to the process circuit and completed processing available stockpiles under the Level 1 permit. A quantity of pre‐concentrate generated from Level 1 operations will be dressed during the first quarter of 2018. Preparations for Level 2 are being finalised and civil works are expected to commence during the current quarter.
Taronga
In late December 2017 the Company received approval from the Glen Innes Severn Council for the Taronga Stage 1 Development Application. The Stage 1 Project will comprise a trial mine and pilot process plant to test a number of areas of upside identified during the Updated PFS.
14th March 2018
Taronga
A primary objective of the Taronga Stage 1 Project will be to assess areas of upside identified during the Updated Pre‐Feasibility Study completed in 2014, including thepotential for a higher resource grade. The Company is undertaking additional work to satisfy various permit conditions, notably related to the Tailings Storage Facility and Waste Rock Emplacement. Having sufficiently progressed elements of the additional work, the Company has recently lodged the Mining Lease Application (MLA)
12th April 2018
Granville
Work has commenced on the construction of the new TSF, located immediately downstream of the existing TSF, with design capacity for approved Level 2 operations. Jemrok will utilize locally sourced materials to the extent possible andconstruction is forecast to take six weeks.
30th April 2018 Quarterly
Granville
The forecast cash cost of production (C1) for the Granville Expansion have been amended to A$17,300/t of recovered tin (previously A$15,600/t). Based on a tin price of A$26,700/t, the operating margin is estimated at A$9,400/t of tin in concentrate.
Taronga
During the quarter the Company received formal notification of approvals for the Stage 1 Project, progressed pre‐construction work for the Stage 1 Project andsubmitted the Mining Lease Application.
the forecast cash cost of production (C1) for the Granville Expansion have been amended to A$17,300/t of recovered tin (previously A$15,600/t). Based on a tin price of A$26,700/t, the operating margin is estimated at A$9,400/t of tin in concentrate.
During the quarter the Company received from the Glen Innes Severn Council the Notice of Determination for the approval and conditions for the Taronga Stage 1 Project. The Company isundertaking additional work to satisfy various permit conditions, notably related to the Tailings Storage Facility and Waste Rock Emplacement.
During the June 2018 quarter the Company is targeting completion of pre‐construction work and progression of regulatory plans and requirements. The Company will also progress engineering for the pilot plant and selection of preferred contractors for mining, civil construction and ore crushing.
7th June 2018
Granville
Following finalisation of the 2017 trial shipment, the Company has entered into a new, two year tin purchase agreement with Traxys Europe S.A for tin concentrate from the Granville Tin Project. Whilst the terms of the agreement are confidential, key elements of the previous agreement, including the purchase of the concentrate “ex‐mine gate” and payment linked to the prevailing US dollar tin price as quoted on LME are retained. Taking into account new thresholds for certain penalty elements, overall the new agreement provides for more favourable terms to the Company. The Company is pleased continue the working relationship with Traxys Europe S.A.
Work on the new Tailings Storage Facility (TSF) is progressing (refer Figure 1) although the schedule has been delayed by approximately four weeks due to combination of weather and a more onerous engineering testing regime than that originally contemplated. The Company has appointed a second contractor to expedite the recovery of local materials for construction of the new TSF to limit any delay, and the additional testing has permitted the increased use of local material which will reduce capital costs. Separately, the Company has sought and obtained approval from EPA Tasmania for installation of a more economical HDPE liner which will reduce the cost and facilitate improved installation.
2nd July 2018
Taronga
Preliminary ore‐sorting test work indicates effective separation of ore from waste for Taronga ore with the next stage pilot work to be accelerated.Ø Increased liberation may improve ore sorting performance, with test work for the +8mm to ‐25mm size fractionachieving a 240 percent increase in head grade at 93 percent tin recovery, marking animprovement on parameters adopted for the 2014 Pre‐Feasibility Study.
The XRT tests proved the Taronga ore could viably separate the high density tin mineral cassiterite, from the low density waste material. Analytical results for the standard static test indicate an overall 54 percent increase in head grade (0.56%Sn to 0.86%Sn) whilst achieving 96 percent tin recovery.
31st July 2018 Quarterly
Granville
The construction of the new TSF has been delayed due to a combination of weather and a more onerous engineering testing regime. Additional contractor resources have been engaged and weather permitting the TSF will be completed during the current quarter.In the interim, plant and equipment has been deployed to the Granville East Mine.
Taronga
During the quarter the Company progressed various pre-construction work and progression of regulatory plans required for the Stage 1 Project. The design for the Tailings Storage Facility was finalised and submitted to the regulators for construction approval, and engineers were appointed to complete the preliminary design and cost estimate for the pilot plant.To progress the Mining Lease Application, a survey of the lease boundary was completed and several technical reports were received for inclusion in the Mining Operations Plan (MOP).
5th September 2018
Taronga
Pre‐construction regulatory approvals for the Stage 1 Project are progressing and are summarised below:
· The Company has now received an offer of grant from NSW Department of Planning and Environment for Mining Lease Application 554 which incorporates the Stage 1 Project, and the Company intends to satisfy all outstanding requirements for formal grant within the month;
· The NSW Dam Safety Committee have advised the design for the tailings storage facility conforms with its requirements and the Company is now progressing the construction certificate with the Glen Innes Severn Council;
· Applications for the water use licence and supply works have been submitted to the Natural Resource Access Regulator and are currently being assessed, and the water access licence has been approved by Water NSW;
· Application for the Environmental Protection Licence was submitted to the Environment Protection Authority during August and is currently being assessed; and
· The Company intends to submit the draft Mining Operations Plan (MOP) to the Department of Planning and Environment upon formal grant of the Mining Lease.
The Company previously issued an Expression of Interest to potential contractors for mining and tailings dam construction services for the Stage 1 Project, and is currently progressing negotiations with preferred parties.
The Company has dispatched a two tonne sample for ore sorting test work to be conducted by Tomra Sorting Solutions Pty Ltd during September. The test work will further assess the amenability of Taronga ore to ore‐sorting and if successful, provide design data for a production unit. In the interim, metallurgical and engineering design for the Stage 1 pilot plant are well progressed.
Granville
Pre‐production activities at the Granville East Mine have largely been completed, including the construction of water management infrastructure, waste rock emplacements and crushing pads. Mining of waste rock has commencedwith temporary drilling equipment (Figure 1) ahead of the blast hole production drill due to be mobilised later this month. Construction of the new Tailings Storage Facility (TSF) had previously been suspended due to the wet ground conditions and more efficient utilisation of equipment at the mine.
24th September 2018
Taronga
The Directors of Aus Tin Mining Limited (the Company) are pleased to announce that the NSWDepartment of Environment and Planning (the Department) has granted Mining Lease (ML) 1774 to Taronga Mines Pty Ltd, a wholly owned subsidiary of the Company. Granting of ML 1774 represents a major milestone for the Taronga Stage 1 Project and plans to undertake a trial mine and pilot plant to evaluate areas of potential upside including resource grade, tin recovery and recovery of by‐product credits identified in the 2014 Pre‐Feasibility Study.
24th October 2018
Taronga
Positive results received from latest ore sorting test work, including significant waste rejection and grade uplift of sorted product whilst achieving comparable waste grades to previous work·Evaluating options for implementation of ore‐sorting for Taronga Stage 1 Project
1. Significant mass rejection (up to 66 percent) to waste may be achieved which could either reduce the scale of the downstream processing plant and/or enable an increased plant throughput;
2. Significant uplift (up to 3x) in the grade of sorted product which could increase the tin units reporting to a downstream processing plant;
3. Significant uplift (over 3x) in the grade of fines (‐8mm) material, highlighting the potential for preliminary beneficiation in conjunction with ore‐sorting; and
4. Consistent waste grades across all tests highlights potential to increase tin recovery with increasing feed grade.
The pilot ore sorting test work also identified areas that warrant additional investigation, including optimising the waste grade and potential for generating a low‐grade product. Typically, five to six pilot scale trials maybe required before final design parameters are determined, but the pending Taronga Stage 1 Project may provide an opportunity for a more comprehensive evaluation to be undertaken. The Company has previously received a lease‐to‐purchase proposal from TOMRA Ore Sorting Solutions (TOMRA) and more recently a proposal from a contractor to provide both crushing and ore‐sorting services.
In the coming weeks the Company will evaluate whether to proceed with an ore‐sorting trial in conjunction with the Stage 1 Project, including considerations for additional costs and existing approvals. The Company will also transport the residual material from the ore‐sorting test work to the Granville Tin Project to assess the material for downstream gravity and flotation processes. In the interim, the Company continues to progress outstanding regulatory approvals and contractor negotiations in preparation for a commencement of development activities associated with the Taronga Stage 1 Project.
31st October 2018
Granville
During the quarter the Company completed pre‐production works at the Granville East Mine (including construction of water management infrastructure and waste rock emplacement) and commenced waste mining via the cut‐back of the eastern wall. Four benches of waste material are to be mined before ore is accessed, and at the time of this report the mining contractor had commenced the third waste bench. The mining contractor has recently mobilised a larger blast drill rig to improve productivity, and a second truck is being mobilised. The mining contractor will mobilise crushing plant in the coming weeks ahead of ore mining.
The priority for the mining contractor during the quarter was waste mining at the open‐cut, however, following improved weather in October the contractor is working towards completion of the new Tailings Storage Facility (TSF). The wall of the new TSF has largely been constructed to a height of RL 199m compared with the final design height of RL 202.5m and the liner installation is scheduled to commence in November. During the quarter the process plant treated a small quantity of low‐grade material to facilitate commissioning of new equipment for the materials handling of coarse oversize (scats) and prepare for a resumption of expanded operations.
Taronga
Subject to obtaining all regulatory approvals the Company is targeting ore production by the end of the calendar year, with the outstanding regulatory approvals summarised below:
· Application for the construction certificate with the Glen Innes Severn Council has been submitted;
· Applications for the water use licence and supply works have been submitted to the Natural Resource Access Regulator and are currently being assessed;
· Application for the Environmental Protection Licence was submitted to the Environment Protection Authority during August and is currently being assessed; and
· A draft Mining Operations Plan (MOP) has been submitted to the Department of Planning and Environment.
During the quarter the Company also received positive results for pilot scale ore sorting test work. Of note was the significant mass rejection (up to 66 percent) to waste and the significant uplift (up to 3x) in the grade of sorted material, both of which could either reduce the scale of the downstream processing plant (and associated capital costs) and/or enable an increased plant throughput. In the coming weeks the Company will evaluate whether to process with an ore‐sorting trial in conjunction with the Stage 1 Project, including considerations for additional costs and existing approvals.
19th December 2018
Granville
Significant progress has been made at Granville in recent weeks. Major civil works at the Tailings Storage Facility (TSF) have now been completed ahead of the liner installation, and theprocessing plant has been operated at a reduced throughput rate for the resumption of tin concentrate. Initial ore production from the Granville East Mine is targeted to commence immediately after the scheduled break for the Christmas / New Year period.
To prevent further delays, the Company has sought to now procure certain services directly (previously sub‐contracted via the civil and mining contractor) commencing with the installation of the TSF liner which is scheduled for mid‐January 2019. Separately, in a proactive attempt to reclaim the effect of delays, the civil and mining contractor has mobilised additional equipment from its own fleet based in New South Wales and will relocate all remaining plant and equipment from the TSF to the open cut mine.
Taronga
Pre‐construction regulatory approvals for the Stage 1 Project continue to progress and during the past month the Company has beenissued the Environmental Protection licence from the Environment Protection Authority. The Company continues toprogress the Mining Operations Plan (MOP) with the Department of Planning and Environment, and the water use licence with the Natural Resources Access Regulator. Upon finalisation of the MOP the Company intends to commence mining an initial parcel of 50,000 tonnes of ore and waste ahead of the remaining 360,000 tonnes of material. Thekey benefits of the rescheduled program include the capacity to generate accelerated results for the resource reconciliation (to assess the potential grade upside) and thedeferral of the more significant capital costs associated with the construction of the TSF and pilot plant to be better aligned with anticipated cash flow from Granville. As with much of eastern Australia, the project area has experienced drought conditions and the rescheduled program will also reduce the initial water demand to within the Company’s existing water use rights. Whilstthe rescheduled program will defer the production of tin concentrate at Taronga, the opportunity toundertake pre‐concentration at Taronga and concentrate dressing at Granville will be investigated.
18th January 2019
Granville
Lining of the new Tailings Storage Facility (TSF) at the Granville Tin Project (Granville) has now been completed and the base of the dam is in the process of being covered with a protective layer of re‐ processed tailings.
During January the processing plant will transition from re‐processed tailings and stockpiled material to ore from the Granville East Mine with a commensurate increase in feed grade and tin concentrate production.
31st January 2019 Quarterly
Granville
During the quarter the mining & civil contractor extracted waste material from the eastern wall of the open‐cut mine and ore has been exposed at the southern end of the pit in preparation for mining. Construction of the new tailings Storage Facility (TSF) was finalised in January 2019. Transition to Level 2 operations commenced subsequent to the quarter targeting increased tin concentrate production, and tin concentrate sales are scheduled to recommence during the current quarter.
Taronga
During the quarter the Company undertook pilot ore sorting test work generating a significant uplift in the grade of sorted product and fines, and is evaluating the options for implementing ore‐sorting for the Taronga Stage 1 Project. A progressive development model for Taronga Stage 1 was conceived to better align capital expenditure with anticipated cash flow from Granville. The revised model will also reduce initial water demand at a time when eastern Australia is experiencing significant drought conditions.
Granville
Construction of the new TSF was the final major permit condition required for the Granville Expansion, and the Company has now commenced the transition to Level 2 operations that incorporates a resumption of processing ore from the Granville East Mine (with a commensurate increase in feed grade and tin concentrate production) and increased daily throughput rate. Tinconcentrate sales are scheduled to recommence during the current quarter andupon achieving the target production rate sales will occur on a monthly basis. It is the Company’s intention to publish actual production and sales data on a quarterly basis for the March 2019 quarter onwards.
Taronga
During the quarter the Company progressed pre‐construction regulatory approvals for the Stage 1 Project including the Environmental Protection licence that was issued by the NSW Environment Protection Authority. The major outstanding approval remains finalisation of the Mining Operations Plan (MOP) and the Company is working with the Department of Planning and Environment andtargeting finalisation of the MOP during the March 2019 quarter.
The Company now intends to commence mining an initial parcel of 50,000 tonnes of ore and waste ahead of the remaining 360,000 tonnes of material. The key benefits of the rescheduled program include thecapacity to generate accelerated results for the resource reconciliation (to assess the potential grade upside) and thedeferral of the more significant capital costs associated with the construction of the TSF and pilot plant to bebetter aligned with anticipated cash flow from Granville. As with much of eastern Australia, the project area has experienced drought conditions and the rescheduled program will alsoreduce the initial water demand to within the Company’s existing water use rights.
18th February 2019
Granville
Run‐of‐Mine material from the first mining block will be transported to the processing plant enabling plant feed to transition from low‐grade stockpiles to high‐grade mine material. The first mining block is located at the southern end of the open cut pit and was extracted from the hanging wall shale that overlies the cassiterite‐magnetite skarn. The first mining block is estimated at430 tonnes based on eight sub‐blocks each 3m x 1.5m x 4m and a specific gravity for mineralised material of 3t/m3 . Assay results from blast hole samples collected for grade control purpose confirm the high‐grade mineralisation at the Granville East Mine, including drill intersections of 4m @ 6.56%Sn (R3C) & 4m @4.34%Sn (R4D). The arithmetic average tin grade for the eight blast holes contained within the mining block was 2.1%Sn1 .
13th March 2019
Granville
Following the appointed of liquidators on 4th March 2019 to the incumbent mining contractors Jemrok Pty Ltd (Jemrok), the Company has terminated the contract with Jemrok and is progressing the necessary arrangements to commence owner mining at the Granville East Mine. The decision to adopt owner mining as opposed to appointing another contractor wasbased on minimising disruption to the project by utilising the existing equipment at site and employment of ex‐Jemrok employees. The Company considers owner mining willdeliver greater control and improvement in mine productivity following a decline in productivity in early 2019. Under the owner mining model, waste mining operations have resumed following a period of lost production attributable to the collapse of Jemrok, and ore mining is expected to resume in the coming fortnight.
Owner mining operating costs for Granville are estimated at $100,000 to $130,000 per month depending on blasting requirements and are inclusive of equipment rental, fuel and labour. Owner mining should deliver alower mining cost based on the removal of the contractor’s margin.
Jemrok were previously contracted to also provide crushing and ore‐haulage services but the Company is nowprogressing discussions with a third party for these services. In the interim the Company has transported the relatively friable hanging wall ore that doesn’t require crushing to the processing plant for treatment. The commencement of processing hanging wall ore has led to an increase in plant feed grade (average 1.85%Sn month‐to‐date for March compared to 0.82% for February) but has necessitated a change in operating strategy to accommodate the increased level of sulphides associated with this material in order to achieve the target concentrate grade of 60%Sn. Upon implementation of contract crushing the Company will be able to increase the proportion of competent skarn ore that contains lower sulphide level and historically has been the predominant ore source for the project. Notwithstanding delays attributed to the mine and the change in operating strategy for treating hanging wall shale ore, the Company is building an inventory of tin concentrate and is targeting a resumption of concentrate sales within a month.
29th March 2019
Granville
The Company has entered into a non‐binding Heads of Agreement (Agreement) with Lucas Total Contract Solutions (Lucas) to supply Non‐Acid Forming (NAF) waste rock from the Granville East Mine for construction purposes at the Granville Harbour Wind Farm (Wind Farm). Subject to obtaining all regulatory approvals, the Agreement contemplates the sale of up to 120,000 tonnes of NAF waste from existing waste rock emplacements immediately east of the open‐cut. The proposed sale of NAF waste rock provides two key benefits to Aus Tin Mining, being an additional revenue stream and reduced provision for future site rehabilitation. The financial benefits of the Agreement will be analysed upon receipt of all regulatory permitting conditions but are expected toequate to four or five months of owner mining operating costs, with a commensurate reduction in the previously announced forecast cash costs. Since assuming owner mining in mid‐March the Company has been, and will continue to pursue opportunities for further operational and financial efficiencies and improvements. The Company has commenced the process to obtain the necessary approvals and will work with Lucas and the regulators to complete the process as soon as possible, noting the potential environmental benefits of reduced ground disturbance at both the Granville East Mine and the Wind Farm. In the interim,processing of ore and production of tin concentrate continues at the processing plant.
30th April 2019 Quarterly
Granville
During the quarter construction of the new Tailings Storage Facility was completed being the final major permit condition for the Granville Expansion. Processing operations resumed thereafter treating a blend of hanging wall ore, scats and tailings. Tin concentrate shipments recommenced subsequent to the end of the quarter.
Taronga
During the quarter the Company continued to work with the Department of Planning and Environment to progress theoutstanding regulatory approval and a revised draft of the Mining Operations Plan was submitted.
Granville
During the quarter the Company commenced ore mining at the Granville open‐cut mine and reported an initial ore block grading an arithmetic average grade of 2.1%Sn. During the quarter the Company selectively mined approx. 500 tonnes of material from the hanging wall zone that didn’t require crushing and was trucked direct to the processing plant. Subsequent to the end of the quarter the first skarn material was mined, and blast hole drilling confirmed a zone of high‐grade mineralisation with an arithmetic average grade of 1.8%Sn over a 15m cross‐section of the pit (Figure 1). The skarn is the main type of mineralisation at the mine and is representative of material treated during Level 1 operations.
In mid‐March the Company commenced the transitioned to owner mining following the collapse of the mining contractor Jemrok and their appointment of liquidators,concluding a challenging period that detrimentally impacted the project, specifically the construction of the new Tailings Storage Facility (TSF). The Company has since procured mining fleet and employed personnel and is now pursuing opportunities for operational and financial efficiencies at the mine, including the potential sale of waste rock to the near‐by wind farm. Jemrok were also contracted to provide crushing services but theCompany has been required to source alternative arrangements, and with the preferred crushing contractor, will be testing in the coming fortnight a 30‐tonne parcel of skarn ore to finalise the selection of crushing equipment. The Company has not pursued owner crushing operations at this stage, due to equipment costs. Processing operations resumed in February following completion of the new TSF, with approx. 570 tonnes of run‐of‐mine ore, scats and tailings processed at an average grade of 1.09%Sn. Throughput rate and tin recovery were both detrimentally impacted because of more metallurgically challenging hanging wall material, but concentrate productionultimately achieved the targeted 60%Sn grade. Throughput rate and tin recoveries are both expected to increase with the commencement of treating skarn material, consistent with that achieved for Level 1 operations.Shipment of tin concentrate under the off‐take arrangements with Traxys recommenced with the first concentrates dispatched from site on 29th April with the balance of the first shipment due out in May. The Company have engaged global laboratory SGS to undertake independent sampling for all future shipments and will commence with a half container shipment (10 tonnes) to test the process.
Taronga
During the quarter the Company continued to work with the Department of Planning and Environment to progress the approval of the Mining Operations Plan (MOP) being the outstanding regulatory approval for Taronga Stage 1. A revised draft of the MOP was submitted incorporating an alternative water management regime within the Tailings Storage Facility with the objective of reducing the potential level of environmental bonding to be lodged. The Company also undertook a program of field reconnaissance within an area north‐east of Taronga considered prospective for “sheeted vein” tin mineralisation similar to that found at Taronga and McDonalds forwhich results are yet to be reported.
13th May 2019
Taronga
Receipt of approval for the Mining Operations Plan (MOP) from the NSW Department of Planning & Environment is the culmination of an approvals process that commenced in May 2015. The Company will nowseek to implement its development plan for site establishment and initial mining, targeting commencement before the end of June 2019.
The initial establishment of Taronga Stage 1 is currently contemplated to be funded by way of the recently completed private placement and announced Share Purchase Plan. The majority of expenditure for Taronga Stage 1 is forecast for thesecond half of 2019 to coincide with the expected sustained cashflows from the Granville Tin Project. The Company is alsoprogressing discussions with potential concentrate off‐ take counterparties and is exploring the opportunity for associated project funding.
The Company has plans to expand these resources both at the Taronga site that will established in the next months, and regionally within its larger Taronga – Torrington Project footprint, withdetails to be provided as the Company continues to advance the Project.
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