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Update – 15 October 2024 Australian Tin Resources Pty Ltd (ATR)
is making good progress with its pilot plant R&D activities and towards
achieving full scale commercial operations at its Ardlethan tin mine. The 10th shipment of tin concentrate
sold to Chinese smelters will occur this week and an 11th shipment will be
despatched to the overseas smelter by December this year. It is notable the Ardlethan tin mine is
currently one of only two operating tin mines in Australia. Earlier this year we installed a
multi-gravity separator (MGS) aimed at capturing and increasing the grade of
tin concentrate that would otherwise be lost to the tailings waste stream
after processing over the shaking tables. Commissioning of the MGS has
demonstrated very positive results. We are now contemplating the
installation of a ball mill to process the approx 50% of tailings volume
presently not captured by the Derrick and Landsky screens at the front end of
the process circuit. Assuming this proves successful, we will be able to more
fully utilize the 30tph design capacity of the existing processing circuit
and significantly increase grades and recoveries of tin (Sn) concentrate for
sale to the overseas smelter. However, rather than processing the
entire tailings oversize volume through the ball mill, we are first
investigating if we can reduce the volume fed to the ball mill and from the
ball mill to the spirals, using pre-concentration technologies to capture and
upgrade the <125 micron tailings feed containing about 0.11% Sn, and
screen out the >125 microns which contains little tin. To achieve this, we envisage a two-step
process aimed at providing up to a 4 times upgrade of the tailings oversize,
with 80% Sn recovery. Towards this end we recently sent samples of the
oversize tailings to Gekko to test the upgrade and recovery they can achieve
with their in-line pressure jig (IPJ), to Newcastle University to test the FL
Schmidt reflux classifier, and to Mineral Technolgies, to test whether
additional spirals might be added to the existing circuit. We also
investigated the use of conventional jigs and revisited previous test results
of the Falcon classifier, because unlike previous Falcon testing targeting
ultra-fine tin tailings (<106 microns), we are now targeting the >106
micron fractions which we understand is potentially a sweet spot for the
Falcon. R&D of these technologies
continues. We have contracted to rent a laboratory scale Reflux Classifier to
test it in the plant for 3 months commencing in November this year. However, having regard to the cost, benefit
and lead-time of incorporating pre-concentration in our R&D program and
our wish to accelerate the transition to full commercial operations, we have
also procured conventional jigs which we will install into the process
circuit as soon as possible. It is only after we can assess the pre-concentation
effectiveness of the jigs that we will be able to establish the size the
required ball mill. With about six months to procure the
required pre-concentration equipment and complete the ball mill installation,
it will not be until the end of the first quarter of 2025 that we will be
able to more fully utilise the production capacity of the existing 30 tph
spiral plant and commence full scale commercial production. During pilot plant testing we have been
working relatively low hours per week to minimise costs and process water
consumption while we investigate process refinements and improvements to
plant reliability and performance. However, we have recently been increasing
plant working hours as concentrate production volumes, Sn grades and
recoveries improve. With installation
of the ball mill, we will be on the cusp of finalizing commissioning of the
existing 30 tph plant and commencing full-scale commercial production, albeit
we will still have further improvements to the process circuit to be trialled
after production operations formally commence. In the meantime, by working additional
plant hours, we expect the operation to be cash flow positive. ATR’s intention is to progressively
ramp up production as we become increasingly satisfied that the production
process circuit is as efficient and reliable as we can reasonably achieve and
is operating on a financially viable basis. We are presently on the cusp of
this objective. We will do this in a step-by-step manner as potential process
improvements are tested and implemented, by increasing hours worked each week
and by adding additional production capacity to the plant process circuit. People underestimate the time and cost
associated with gaining the necessary approvals to transition from
exploration to production. ATR has submitted all environmental plans and
other data to the various government authorities as required by Council’s Development
Approval Conditions of Consent for a 1.5 million tonne per annum operation
and has all necessary approvals, including Environmental Protection Licence
Number 21797 granted to us on 6 July 2023 for Large Mine operations, so there
are no regulatory impediments to our commencing full scale production
operations whenever it suits us. With approvals already in place for
tailings retreatment at 150 tonnes per hour and with potential production of
1,000 tonnes of tin in concentrate per annum from tailings alone, ATR will be
seeking partners with capital and expertise to progressively increase our
rate of production from the present 30 tph plant capacity.
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The Ardlethan Tin Mine is located
approximately 500 km southwest of Sydney, NSW, 5 km NW of Ardlethan township.
It covers about 400 hectares on land wholly owned by EOE (No 75) Pty Ltd
(EOE), a wholly owned subsidiary of Australian Tin Resources Pty Ltd (ATR). Excellent road and rail access is
available within close proximity to the site. Additionally, an approx.50km
pipeline from the Murrumbidgie River at Grong Grong to site is now
decommissioned, but subject to approval could potentially be reinstated if
required.
The plant is presently powered by
diesel generators. However, there is an electrical substation in Tin Mine
Road, about 2.0km from the mine site, should ATR wish to reconnect to the
main electricity grid. Mining at Ardlethan commenced in 1912.
At first it was on a small scale, but between 1965 and 1986 Aberfoyle
Resources NL around 30 million tonnes of granite, initially from open cut
operations and later from underground workings. Of the approx 30 million tonnes mined,
Aberfoyle processed about 9.0m tonnes of ore assaying 0.46% tin. The
remaining 21 million tonnes (approx) had a tin content below Aberfoyle’s
cut-off grade of 0.20% tin and was stockpiled in overburden waste dumps which
surround the open cuts. In 2020 ATR carried out very successful tests offsite
to trial a Tomra Ore Sorter on a bulk sample of our waste rock. The results
were impressive with high upgrade rates being achieved and pointed to the
feasibility of viably processing the waste rock as a future option. Additionally, the under-explored
underground Ardlethan tin mine hard rock resource offers an attractive future
opportunity in the longer term. Significant tin deposits have also been
identified by exploration drilling in potentially available leases adjacent
to the Ardlethan Tin Mine site.
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JORC certification and Ardlethan Tin Mine records
show there is at least 66,500 tonnes of contained tin on site. At the current
tin price of ~US$32,500/ tonne (A$50,000/tonne) this represents a value of
over A$3,000 million – a very worthwhile value proposition. The Ardlethan Tin Mine is one of only two operating
tin mines in Australia and the defined deposit places it in the top twenty
tin mines in the world. Importantly, the mine is being developed and
operated by ATR on the existing mine site previously operated by Abefoyle
until 1986. Unlike many resource
undertakings in Australia, ATR already has its approvals in place and does
not need to embark on the very onerous and expensive development consent and
environmental approval process required when a proposed mining undertaking
seeks to transition from exploration to production. The tin on the Ardlethan site is contained in three
areas as shown in the Resources summary below and more fully described in the
Resources section of this website.
*
Source: Reynard Australia Pty Ltd JORC Report, October 2011 ** Source: Ardlethan Information Brochure,
Molina & Doran, May 1989 When
the mine capacity and production is expanded to full operations, the
operating cost is expected to be in the bottom quartile of global tin mining
operating costs. Tin
is around 30 times rarer than copper and all tin mines operating today are
based on brownfield mining operations. No new tin resource has been found
anywhere in the world in more than 50 years. The Ardlethan tin mine dates
back to 1912 with artisanal mining operating on the site from the nineteenth
century. The
International Tin Association is predicting a shortfall in tin supply deficit
from next year (2025) driven by supply constraints from existing operators
and the growing demand for tin in Electric Vehicles and Solar panels. As
summarised in the Introduction Section above, there have been some challenges
in extracting the tin from the tailings which have a grade of only 0.2
percent tin. The company has been conducting research and development
activities based on the 2016 engineering and assessment of Mineral
Technologies, a respected global leader in the use of spirals to upgrade and
extract the tin contained in the tailings to a saleable grade of 50+% tin
concentrate. This has been successful with ten shipments sent, accepted and
paid for by Chinese smelters to date using our 15-30 ton per hour Pilot
processing plant Current
research and development activity is focused on increasing capacity, recovery
and grade from the existing 30 tonne / hour pilot plant by introducing
refinements in the processing circuit in a step-by-step manner. We are
presently planning to crush the oversize tailings oversize which is currently
not being processed but contains usable tin. This will be followed by further
capacity increases that will drive the cash operating cost below the lowest
quartile of production costs for global tin producers. Our
current approvals are for re-processing tailings. However, there may be
further opportunity to increase production by processing the above ground
waste rock which contains approximately A$1 billion of tin. Research using
Tomra ore sorting technology has shown this to be a very attractive option
for the future. Finally,
the development of the underground resource on our site, and potentially
expanding from our site into known resources neighbouring our leases, would
require significant capital and new approvals, but is technically straight
forward. It is likely this option would be undertaken by a larger and more
experienced mining operator. |
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1. Tailings Retreatment
of the tailings from previous mining operations was the main driver for
Australian Tin Resources deciding to acquire the Ardlethan tin mine. ATR
now has DA approval to construct a 150 tonne per hour plant on site to
operate 24 hours/day, 7 days/week. However,
before moving to full scale production, ATR is firstly carrying out small
scale pilot plant processing operations on site to prove up and refine the
processing technology. We
will the upsize the plant from 30 tonnes per hour, to 60 tonnes per hour, and
ultimately to it’s approved 150 tonnes per hour capacity over time.
Source: Reynard Australia Pty Ltd JORC Report, October 2011 2. Waste Stockpiles The
Ardlethan mine contains approximately 21.3 million tonnes of granite
previously mined by Aberfoyle and now stored in waste dumps circling the open
cuts. Processing the stockpiled waste material represents a potential option
and is a comparatively low capital and operating costs option. Waste material
boulders typically range in size from approx 30cm to 100cms in diameter and
the waste dumps are readily accessible from existing mine haul roads. ATR
has obtained JORC certification of the waste material resources stockpiled at
the mine site as summarized in the table below. In
2020 ATR carried out very successful tests offsite to trial a Tomra Ore
Sorter on a bulk sample of our waste rock. The results were impressive with
high upgrade rates being achieved and pointed to the feasibility of viably
processing the waste rock as a future option.
Source: Reynard Australia Pty Ltd JORC Report,
October 2011 3. Hard Rock Mining of Underground
Resource The
table below summarises the hard rock mineral resources at the time of mine
closure in August 1986. These resources consist of broken ore in stopes,
remnants, pillars and resources inferred from drilling. Access would be via a
decline just north of the main Ardwest / Wild Cherry Open Cut. There
is further potential deeper underground on the mine site and in surrounding
environs. There are also some small deposits of known high grade ore at or
near the surface.
Source - Ardlethan Information
Brochure, Molina & Doran, May 1989. |
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Australian Tin Resources
Pty Ltd ABN 17 124 654 360 Registered Office: Level 4, 141 Walker Street North Sydney, NSW 2060 (PO Box 1506, North Sydney, NSW 2059). Australia Phone
+61-2-9959 5599 Site Office: Tin Mines Road, Ardlethan, NSW 2665) (PO Box 13, Ardlethan, NSW 2665) Australia. Phone 0437 772 256 Complaints: Phone 0437 772 256 Email: admin@atresources.com.au Contacts: Peter Francis - Director Mobile
0412 178 128 Email: pfrancis@atresources.com.au Glen Cunningham - Director Mobile 0412 058 773 Email: gcunningham@atresources.com.au Bill Lannen - Director Mobile 0418 330 583 Email: blannen@atresources.com.au Sam Boatwright - Site
Manager Mobile 0413 483 324 Email: samb@atresources.com.au |
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