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Project: | Oropesa | |
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Deposit: | Oropesa | |
Location: | Spain | |
Commodities: | Tin | |
Date: | 5/7/2020 | |
Report Code: | JORC | |
Report Type: | PEA | |
Project Stage: | Pursuing Feasibility Study | |
Report details: | 7-5-2020: Elementos Ltd. announces a PEA report for its Oropesa deposit at the Oropesa project. Economic Study results incl. pre-tax NPV (8%) of US$66M and IRR of 25%. An Economic Study (Study) completed by Elementos (ASX:ELT) has positioned the company’s | |
Resources: | (Resources, Total): 12.54Mt @ 0.54% Sn (67,990t Sn) | |
CP/QP: | [Overall Report]: Chris Creagh (Internal) | |
ABSTRACT: | An Economic Study (Study) completed by Elementos (ASX:ELT) has positioned the company’s wholly owned Oropesa Project in Spain as a globally signifcant new tin development with a prospective annual production of 2,440 tonnes of tin metal over a 14-year mine life. At a tin price of US$19,750/tonne, the mine could potentially generate an annual gross revenue of more than US$48 million against a forecast operating cost of US$28 million per year or cash cost of US$11,534/tonne of metal. The estimated capital development cost is US$52.2m including a 20% contigency1 . Readily executable, the development concept proposes a simple open-cut mining operation and conventional processing facility producing tin concentrates which would be shipped to smelters in Europe and Asia. The Study valuation also found a base case pre-tax NPV8% of approximately US$92m and post tax NPV8% of approximately US$66m. The pre-tax Internal Rate of Return is approximately 25% and the payback period is approximately four years. Elementos Chairman Mr Andy Greig said the next steps would be to complete a Definitive Feasibility Study and finalise environmental permitting. “The Study demonstrates that Oropesa has the potential to deliver attractive financial returns at a relatively low capital cost, it’s an excellent opportunity to create value-uplift potential for shareholders as the project is advanced towards development,” Mr Greig said. | |
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