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Update – 31 July 2024 ATR
is actively progressing its planned Rehabilitation and Tailings Reprocessing
Project at the Ardlethan Tin Mine and is making good progress with pilot
plant R&D activities at the site. 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 encouraging 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 preconcentration 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 involving one of three, or potentially four, technologies, aimed at providing up to a 4 times upgrade of the tailings oversize, with 80% Sn recovery. Towards this end, this month we have 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 have also 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. Subject to satisfactory test results, and having regard to the cost benefit and schedule, we will install one of the above contenders into the process circuit as soon as possible. With about six months to procure the equipment and complete the installation, it will not be until the end of 2024 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. During our pilot plant R&D
activities we have so far sent eight shipments of concentrate to market for
assessment and have been able to progressively increase the grade and purity
and hence the value of each shipment as a result of improvements in the pilot
plant process circuit initiated by our R&D program. We are expecting the 9th concentrate
shipment to be despatched to the overseas smelter in late-August 2024. Commencing
with shipping one 22 tonne container load of concentrate (20 tonnes dry
weight, containing over 50% tin) to market overseas each month, 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. We
have 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 have
all necessary approvals, including Environmental Protection Licence Number
21797 granted to us on 6 July 2023, so there are no regulatory impediments to
our commencing full scale production operations whenever it suits us.
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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. Mining operations ceased in 1986 due to the
collapse of tin prices. 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$30,000/ tonne (A$47,000/tonne) this represents a value of over A$3,000 million – a very worthwhile value proposition. The
defined deposit places it in the top twenty tin mines in the world. 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 eight 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. The research focus is
to have a cash operating cost below US$10,000 a tonne of tin produced. 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 tantalizing 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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