Consolidated Tin Mines Limited - Australian … poly metallic ore from mines within SPM’s newly...
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Registered Office: 395 Lake Street, Cairns North, QLD, 4870 ANNOUNCEMENT ASX/MEDIA RELEASE Consolidated Tin Mines Limited ABN: 57 126 634 606 Phone: +61 (7) 4032 3319 [email protected] Snapshot: Detailed information at www.csdtin.com.au Key Points Snow Peak Mining Pty Ltd acquisition of Kagara’s Central Region Project has been finalized The acquisition includes a 1Mtpa capacity concentrator CSD has a 10% free carry interest in Snow Peak Mining Acquisition is of major value to CSD and the Mt Garnet Tin Project development PFS now based on processing tin ore at Snow Peak Mining 1Mtpa concentrator CSD appoints new EGM to drive CSD/SPM development plan 30 th of January 2013 Completion of acquisition of Kagara Central Region Project Consolidated Tin Mines major shareholder Snow Peak acquires Kagara Central Region assets including existing Concentrator at Mt Garnet Consolidated Tin Mines major shareholder Snow Peak International Investment (SPI) has completed the acquisition of Kagara’s Central Region Project The acquisition has been completed via Snow Peak Mining (SPM), a subsidiary of Snow Peak International Investments Consolidated Tin Mines has a 10% free carry interest in Snow Peak Mining The acquisition includes a 1Mtpa capacity concentrator which is in good operating condition Acquisition by Snow Peak Mining is of major strategic value and importance for development of Consolidated Tin’s Mt Garnet Tin Project in northern Queensland The existing concentrator will initially be utilised to process copper and poly metallic ore from mines within SPM’s newly acquired Kagara project area Consolidated Tin will now finalise its PFS for the Mt Garnet Tin Project based on processing tin ore at the Kagara Mt Garnet concentrator in order to proceed to a JV with SPI, the terms of which are being negotiated Australian tin exploration and development company Consolidated Tin Mines Limited (ASX: CSD) (CSD) is pleased to announce that Snow Peak Mining Pty Ltd (SPM), a company in which CSD holds a 10% interest, has completed the acquisition of the Kagara Central Region Project at Mt Garnet, near Cairns in northern Queensland (Kagara Project). Current CSD Share Price: $0.10 Current LME Tin Price: $24,475 For personal use only
Transcript of Consolidated Tin Mines Limited - Australian … poly metallic ore from mines within SPM’s newly...
Registered Office:
395 Lake Street,
Cairns North, QLD, 4870
ANNOUNCEMENT
ASX/MEDIA RELEASE
Consolidated Tin Mines Limited ABN: 57 126 634 606
Phone: +61 (7) 4032 3319
Snapshot:
Detailed information at
www.csdtin.com.au
Key Points
Snow Peak Mining Pty Ltd acquisition of Kagara’s Central Region Project has been finalized
The acquisition includes a 1Mtpa capacity concentrator
CSD has a 10% free carry interest in Snow Peak Mining
Acquisition is of major value to CSD and the Mt Garnet Tin Project development
PFS now based on processing tin ore at Snow Peak Mining 1Mtpa concentrator
CSD appoints new EGM to drive CSD/SPM development plan
30th of January 2013
Completion of acquisition of Kagara
Central Region Project
Consolidated Tin Mines major shareholder Snow Peak acquires Kagara
Central Region assets including existing Concentrator at Mt Garnet
Consolidated Tin Mines major shareholder Snow Peak International
Investment (SPI) has completed the acquisition of Kagara’s Central
Region Project
The acquisition has been completed via Snow Peak Mining (SPM), a
subsidiary of Snow Peak International Investments
Consolidated Tin Mines has a 10% free carry interest in Snow Peak
Mining
The acquisition includes a 1Mtpa capacity concentrator which is in
good operating condition
Acquisition by Snow Peak Mining is of major strategic value and
importance for development of Consolidated Tin’s Mt Garnet Tin
Project in northern Queensland
The existing concentrator will initially be utilised to process copper
and poly metallic ore from mines within SPM’s newly acquired Kagara
project area
Consolidated Tin will now finalise its PFS for the Mt Garnet Tin Project
based on processing tin ore at the Kagara Mt Garnet concentrator in
order to proceed to a JV with SPI, the terms of which are being
negotiated
Australian tin exploration and development company Consolidated Tin
Mines Limited (ASX: CSD) (CSD) is pleased to announce that Snow Peak
Mining Pty Ltd (SPM), a company in which CSD holds a 10% interest, has
completed the acquisition of the Kagara Central Region Project at Mt
Garnet, near Cairns in northern Queensland (Kagara Project).
Current CSD Share Price: $0.10
Current LME Tin Price: $24,475
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Consolidated Tin Mines Limited ABN: 57 126 634 606
Phone: +61 (7) 4032 3319
ANNOUNCEMENT
ASX/MEDIA RELEASE
30th of January 2013
SPM is a subsidiary of Hong Kong-based investment group Snow Peak International Investment Pty
Ltd, which is Consolidated Tin’s major shareholder.
Consolidated Tin holds a 10% interest in the share capital of SPM on a ‘free carry’* basis.
The total consideration for the acquisition was $29.3 million (plus the assumption of $10.7 million of
environmental bonds).
The Kagara Project comprises a highly prospective and proven package of copper and base metal
assets plus an existing operational concentrator with a 1,000,000 tonne per annum-capacity
concentrator. The concentrator currently has both copper and poly metallic circuits, with each
circuit having the capacity to process about 500,000tpa.
The Kagara Project is located in close proximity to Consolidated Tin’s Mt Garnet Tin Project and the
Company views the acquisition of the Kagara Project by the Company’s major shareholder as being
of significant strategic value and importance.
The operating concentrator acquired by SPM is located just nine kilometres (by sealed road, on the
Kennedy Highway) from CSD’s flagship Gillian Tin Deposit, which has a near-surface open pit
mineable JORC Resource of 3Mt @ 0.78% Tin (Sn). Refer to table 1 below for a further breakdown of
those JORC resources.
It is proposed that CSD will manage and operate the Kagara Project on a reimbursable basis on
behalf of SPM.
*’Free carry’ means debt free and no operating cost billed to CSD.
Executive General Manager appointed to drive CSD/SPM development plan
CSD has employed ex Kagara Central Regional General Manager Mr John Banning as Executive
General Manager to implement the CSD/SPM development plans. He holds a Bachelor of Science,
Mining Engineering obtained from the Montana School of Mines in 1999 and has also undertaken
graduate studies (Mechanical Engineering) at Loyola Marymount University.
Mr Banning has more than 17 years’ experience in the mining industry, including 3 years at BHP
Billiton’s Olympic Dam mine in various senior operational, technical and project positions, 2 years at
Xstrata Copper in the position of Manager – Mine Development and 1 year at Bluestone Mines
Tasmania (Renison Tin Mine) in the position of Mining Manager.
He joined Kagara in 2011 and continued through to 31st December 2012 in the position of Central
Region General Manager.
In his role as Executive General Manager with CSD, Mr Banning will be responsible for leading all
project and operational aspects of the business to ensure their effectiveness, efficiency, sustainability
and alignment with CSD’s business strategy for development of the Mt Garnet Tin Project.
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Consolidated Tin Mines Limited ABN: 57 126 634 606
Phone: +61 (7) 4032 3319
ANNOUNCEMENT
ASX/MEDIA RELEASE
30th of January 2013
Proposed two-stage CSD/SPM strategy
Stage 1
Under Stage 1, CSD will manage the Kagara Project on behalf of SPI as a separate entity. CSD will
receive 10% (free carried) on any short term profit from all revenue from the Kagara Project. CSD will
complete a PFS on its Mt Garnet Tin Project, with ore to be processed through a reconfigured
Kagara Mt Garnet concentrator. Any short term tin processing from CSD areas will be processed by
SPM on a cost plus margin basis.
Stage 2
In Stage 2, based on completion of a positive PFS, it is proposed that a 50/50 JV partnership will be
formed between the two parties, whereby SPM provides the concentrator and CSD provides the
Hard Rock tin project. The terms of the proposed JV partnership are still to be formalised in a new
Heads of Agreement, the terms of which will be subject to shareholder approval at a General
Meeting of CSD shareholders to be held in due course.
On completion of Stage 2, the SPM/CSD JV will install tin processing equipment as required in
preparation for the commencement of production from CSD’s Mt Garnet Tin Project. Any project
costs for installation of additional equipment required to treat the tin ore will be split 50/50.
Production is currently scheduled to commence in 2014.
SPM plans to initially operate the Kagara concentrator in its current configuration to process ore from
the Baal Gammon Project and possibly Balcooma/Surveyor Mines.
Short term tin processing opportunities from CSD non-skarn tin deposits in the region are currently
under investigation.
Consolidated Tin Managing Director Ralph De Lacey said: “This deal is a major step forward for
Consolidated Tin. The acquisition of an operating processing plant by our major shareholder provides
us with the opportunity for a clear path to production for our Mt Garnet Tin Project.”
The company’s JORC Resource review completion is being extended to incorporate the latest round
of drilling results from September 2012 and allow management to review the work completed to
date. The company will inform shareholders of the anticipated completion date for the review in the
near future.
ENDS
For further information please contact:
Ralph De Lacey Darryl Harris
Managing Director Non-Executive Director
Consolidated Tin Mines Consolidated Tin Mines Limited
P: 07 4032 3319 Ph: (07) 4032 3319
E: [email protected] E: [email protected]
W: www.csdtin.com.au W: www.csdtin.com.au
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Consolidated Tin Mines Limited ABN: 57 126 634 606
Phone: +61 (7) 4032 3319
ANNOUNCEMENT
ASX/MEDIA RELEASE
30th of January 2013
About Consolidated Tin Mines:
Consolidated Tin Mines is an emerging ASX-listed (ASX: CSD) tin explorer and developer. Its major
project is the Mt Garnet Tin Project near Cairns in northern Queensland. The project is located in an
established mining area close to infrastructure. Consolidated Tin’s objective is to develop the project
into a major low cost, open pit tin mining operation. The Company’s strategy is to confirm an initial
JORC Resource base of 8Mt-10Mt of tin ore from its three deposits, to feed a centralised mill and
process about 1Mt per annum to produce about 5,000 tonnes of tin in concentrate per annum.
About Snow Peak:
Snow Peak Mining Pty Ltd (SPM) is part of Hong Kong-based Investment Company, Snow Peak
International Investment Pty Ltd (Snow Peak), which is Consolidated Tin’s largest shareholder, with a
19.9% holding.
Table 1 - JORC Resource Table
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Consolidated Tin Mines Limited ABN: 57 126 634 606
Phone: +61 (7) 4032 3319
ANNOUNCEMENT
ASX/MEDIA RELEASE
30th of January 2013
Photo 1 of 3: Jim Halloran of Kagara Ltd hands the Mt Garnet concentrator keys to Mr Tong, principal
of Snow Peak International Investments, the largest shareholder of Snow Peak Mining Pty Ltd
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Consolidated Tin Mines Limited ABN: 57 126 634 606
Phone: +61 (7) 4032 3319
ANNOUNCEMENT
ASX/MEDIA RELEASE
30th of January 2013
Photo 2 of 3: Mr Tong of Snow Peak International Investments hands the Mt Garnet concentrator keys
to Ralph De Lacey, Managing Director of both Snow Peak Mining and Consolidated Tin Mines
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Consolidated Tin Mines Limited ABN: 57 126 634 606
Phone: +61 (7) 4032 3319
ANNOUNCEMENT
ASX/MEDIA RELEASE
30th of January 2013
Photo 3 of 3: Snow Peak Mining Pty Ltd Board of Directors (left to right: Ralph De Lacey (MD), Ze
Huang (Martin) Cai (CFO), Kwok Ching (Alex) Tsoi (Chair)
The information contained in this report that relates to assay results of rock samples and drill chips, to mineral resource
estimates and to ore reserve estimates of mineralisation is based on information compiled by John Sainsbury (BSc, AusIMM).
John Sainsbury is a geologist of 30 years’ experience and has sufficient experience in the type of mineral isation under
consideration to qualify as a Competent Person as defined by the Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves - JORC Code, 2004 Edition. John Sainsbury has consented to the inclusion of this
information in the form and context in which it appears.
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