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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]
¹ Free On Board (FOB) includes all costs loaded on ship; including operating costs, ore and concentrate
haulage, port levy and royalties
Snapshot:
Detailed information at
www.csdtin.com.au
Key Points
Mt Garnet Tin Project
PFS returns positive
results
PFS confirms the
potential for a project
with production profile
of 1Mtpa for 9 years or
greater
PFS input parameters &
results independently
reviewed by mining
industry professionals
Project average
annual revenue of
$127.4M
Annual average
operating cash flow
after capital costs of
A$29.7M
IRR of 111% expected
Reductions in cost
base are expected
through further design
review and
optimisation
Development of
binding agreement on
processing CSD tin ore
at SPM Mt Garnet
concentrator nears
completion
On-track to develop
the Mt Garnet Tin
Project into a major
low cost open pit
mining operation
First production is
estimated for 2014
30th of September 2013
POSITIVE PRE-FEASIBILITY STUDY FOR MT GARNET TIN PROJECT
Definitive Feasibility Study Initiated
Highlights:
Positive Pre-Feasibility Study (PFS) for the Mt Garnet Tin Project
demonstrates the technical and economic viability of the project
utilising the existing Mt Garnet concentrator infrastructure
Key points of the PFS include:
o 1Mtpa open cut mine forecast to produce average 2,944t per
annum of tin in concentrate
o Minimum 9 year mine life
o NPV of A$184.1M before tax (A$110.3M after tax) at 8% discount
rate using base case tin price of A$24,000/t
o Capital payback indicated at 2 years, IRR of 111% after tax
o Highly competitive production costs of A$91.94/tonne of ore Free
On Board¹ (FOB)
o Robust combined total cost of A$13,917/t tin FOB (with by-
product revenue credits)
o Project capital cost to first production of A$76M
o Project average annual revenue expected to be A$127.4M
o Annual average operating cash flow (after capital costs, before
tax) of A$29.7M
Reductions in the capital and operating cost base expected through
further review and optimisation of processing and mine design
Diversified project commodity base lowers financial risk profile
Continued support from cornerstone investor and largest shareholder,
Snow Peak International Investment Limited
PFS completion triggers finalisation of formal agreement with Snow Peak
investors to incorporate the Mt Garnet concentrator into Consolidated
Tin’s Mt Garnet Tin Project
PFS strongly supports progression to Definitive Feasibility Study (DFS)
Consolidated Tin remains on-track to become a significant and
profitable Australian tin producer
Current CSD Share Price: $0.06
Current LME Tin Price: US$23,445
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Consolidated Tin Mines Limited ANNOUNCEMENT
ASX/MEDIA RELEASE
30th of September 2013
Australian tin exploration and development company Consolidated Tin Mines Limited (ASX: CSD)
(Consolidated Tin, the Company) is pleased to announce the positive results from its Pre-Feasibility
Study (PFS) of the Mt Garnet Tin Project in North Queensland. The PFS results confirm the potential for a
project with a production profile of 1M tpa for a period of 9 years or greater.
The Mt Garnet Tin Project PFS results are highly positive and demonstrate the project’s economic and
technical development potential.
Based on the positive outcomes of the PFS and opportunities that exist to significantly enhance the PFS
cost base via project optimisation, the Company has approved the immediate initiation of a Definitive
Feasibility Study for the Mt Garnet Project.
The PFS demonstrates a robust technical, operational and financial position for a 1Mtpa open cut
mine with the concentrator producing an estimated 2,944tpa of tin (Sn) in concentrate at 68% Sn and
234,970tpa of iron (Fe) in concentrate at 65% Fe for export, and 53,860tpa Fluorite @ 86% CaF2
(Acidspar quality achieved in metallurgical testing) in concentrate. The mine design includes the
open cut extraction of ore.
The PFS builds on a Scoping Study completed by CSD in 2010 based on a 700,000tpa open cut mine
and concentrator at Mt Garnet, producing 3,049tpa of tin in concentrate and 236,600 t pa iron in
concentrate. The mine design included open cut extraction of ore by mechanised methods and the
initial project economics from the Scoping Study indicated the potential for a financially viable
project.
The key technical and economic outcomes of the PFS are summarised Table 1 and Table 2, and
further details on the scope and methodology of the PFS are provided in this announcement.
Consolidated Tin Mines’ Chairman and Managing Director Ralph De Lacey said:
“I am extremely pleased to update the market on our prefeasibility study, which provides the critical
reassurance to progress the development of the Mt Garnet Tin Project.
The study demonstrates the economics of a robust and significant tin project. Unlike other projects, Mt
Garnet boasts existing infrastructure and near surface ore, which are the drivers of low capital and
operating costs. The PFS has confirmed that we have the opportunity to develop a substantial and
profitable tin mining project.
Another important outcome of the PFS was the identification of a number of opportunities for financial
improvement with further design optimisation of mining and processing stages, and we have our sights
clearly set on realising these opportunities through the Definitive Feasibility Study (DFS) process.
The Board has approved the initiation of the DFS for the Mt Garnet Tin Project, commencing with
Gillian, with further evaluation work to follow at Pinnacles and later at Windermere. It is anticipated
that Gillian will provide the mill feed for the first three years of mining.
Discussions are well advanced with our major shareholder, Snow Peak, to finalise a binding
agreement to ensure that full asset value is realised for all stakeholders, with the aim of achieving tin
production by end 2014”.
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Consolidated Tin Mines Limited ANNOUNCEMENT
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30th of September 2013
Table 1: Mt Garnet Tin Project - PFS Key Outcomes*
Annual average Total for 9 years
Mining inventory / average mill throughput 0.93 Mt 8.4 Mt
Project revenue A$127.4M A$1,146.6M
Estimated operating cash flow after capital costs A$29.7M A$267.2M
Tin in concentrate production (tonnes @ 68% Sn) 2,944tpa 26,495t
Iron ore production (tonnes @ 65% Fe) 234,970tpa 2,114,732t
Fluorite production (tonnes @ 86% CaF2) 53,860tpa 484,743t
Total cost (after by-product credits) A$13,917/t tin produced
* see page 14 for a summary of assumptions used for the Mt Garnet PFS
The tin price used to evaluate the financial performance of the project was base case
A$24,000/tonne. The below tin price sensitivity table is provided for project valuation at a range of tin
prices.
Table 2: Mt Garnet Tin Project – PFS Technical and Economic Summary*
Tin Price
Parameter
A20,000/t
Base case
A$24,000/t
A$25,000/t
NPV (at 8% discount) after tax A$60.3M A$110.3M A$122.6M
IRR 52% 111% 131%
Life of Mine (LOM) Operating Margin (FOB), ore treated A$32.92/t A$45.28/t A$48.38/t
LOM cash surplus, before tax A$275.2M A$378.5M A$404.3M
* see page 14 for a summary of assumptions used for the Mt Garnet PFS
At this base case economic evaluation, the project is forecast to generate an internal rate of return
(IIR) of 111%. The net present value (NPV) after tax using an 8% discount rate is $110.3 million, which
equates to $0.49 per share ($0.82 per share before tax) based on the 223.3M shares currently on issue.
If the current (26/09/13) LME spot tin price of US$22,975/tonne is used with US$/A$ exchange rate of
$0.936, this tin price of A$24,546/t increases the NPV to A$120.5M and IRR improves to 126%.
Estimated operating cash flow over the initial 9 years life of mine is A$267.2M.
The Company now considers itself well positioned to finalise the agreement with Snow Peak and
achieve a mutually beneficial arrangement to ensure full asset value is realised for both parties. This
agreement will be subject to shareholder approval at a General Meeting.
In the event the company is not able to reach agreement with Snow Peak to process tin ore at the Mt
Garnet concentrator alternative processing arrangements will need to be made.
The Definitive Feasibility Study (DFS) has now commenced.
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Consolidated Tin Mines Limited ANNOUNCEMENT
ASX/MEDIA RELEASE
30th of September 2013
PRE-FEASIBILITY STUDY DETAILS
1. SCOPE
The PFS is based on a 1Mtpa open pit operation at Mt Garnet delivering ore to a 1Mtpa
conventional flotation concentrator that will remove the silica content prior to the ore being
processed with conventional tin fuming using a rotary kiln. The Mt Garnet concentrator is
expected to produce an estimated 2,944tpa of tin in concentrate at 68% Sn and 234,970tpa of
iron in concentrate at 65% Fe and 53,860tpa Fluorite @ 86% CaF2 (Acidspar quality achieved in
metallurgical testing) in concentrate.
The PFS was compiled by Prism Mining. Table 3 details all consultants that provided PFS inputs,
assumptions and preliminary results.
Table 3: Mt Garnet Tin Project PFS Contributors
SECTION CONTRIBUTORS AREA
Geology Optiro
Wire-framing evaluation & interpretation
Geological data review
Resource estimation & validation
Mining Prism Mining
o Canning International
o MineRP
o Fromble Corp
Mine design & scheduling
Blast design
Equipment selection & mine
infrastructure
Tailings Storage Facility
Metallurgy ALS AMMTEC Ltd
Burnie Research Laboratory (BRL)
CSIRO
Walk Institute
Downer EDI
Nagrom
Newcastle Institute for Energy &
Resources
CSD ( Bob Shelley)
Comminution
Ore mineralogy & liberation
Flotation
Reduction Roasting
Gravity Separation
Magnetic Separation
Economics Canning International
o MineRP
o Como Engineers
Mining OPEX/CAPEX
Processing OPEX/CAPEX
Financial Modelling
Financial Sensitivity Modelling
Processing Como Engineers
Ansac
Luhr
Flow sheet drafting
Equipment requirements
Capital & operating cost estimate
Power supply capital cost & pricing
Building costs
Labour supply & costs
Construction service companies & unit
rates
Environment Landline Consultants Baseline Environmental Studies
Environmental Management Plan
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30th of September 2013
2. MINERAL RESOURCE
CSD completed an updated Mineral Resource estimate, announced on 11 June 2013, which was
the basis for all of the mining studies and production profiles used in the PFS.
The resource wireframes incorporated all drill holes up to October 2012 and was carried out by
Optiro Pty Ltd in accordance with the 2012 JORC guidelines and code for reporting of Mineral
Resource Estimates (refer Table 4).
Table 4: Mt Garnet Tin Project JORC Resource
Mining inventory includes Measured, Indicated and minor amounts of Inferred Mineral Resources
that have had mining dilution and recovery factors applied to the mine design, creating an
TIN (Sn)
Cut-off
Sn_EQ %
Measured
tonnes
Grade
Sn%
Indicated
tonnes
Grade
Sn%
Inferred
tonnes
Grade
Sn% Total tonnes
Grade
Sn%
Gillian 0.2 1,105,000 0.73 1,563,000 0.62 930,000 0.61 3,599,000 0.65
Pinnacles 0.33 - - 5,461,000 0.30 1,575,000 0.30 7,035,000 0.30
Deadmans Gully 0.18 - - 444,000 0.34 - - 444,000 0.34
Windermere 0.25 - - 829,000 0.26 1,211,000 0.27 2,040,000 0.27
TOTAL 1,105,000 0.73 8,296,000 0.36 3,716,000 0.37 13,118,000 0.39
IRON (Fe)
Cut-off
Sn_EQ %
Measured
tonnes
Grade
Fe%
Indicated
tonnes
Grade
Fe%
Inferred
tonnes
Grade
Fe% Total tonnes
Grade
Fe%
Gillian 0.2 1,105,000 32.32 1,563,000 24.50 930,000 28.53 3,599,000 27.95
Pinnacles 0.33 - - 5,461,000 19.12 1,575,000 21.04 7,035,000 19.55
Deadmans Gully 0.18 - - 444,000 26.70 - 0.00 444,000 26.70
Windermere 0.25 - - 829,000 25.79 1,211,000 23.68 2,040,000 24.54
TOTAL 1,105,000 32.32 8,296,000 21.21 3,716,000 23.78 13,118,000 22.87
FLUORINE (F)
Cut-off
Sn_EQ %
Measured
tonnes
Grade
F%
Indicated
tonnes
Grade
F%
Inferred
tonnes
Grade
F% Total tonnes
Grade
F%
Pinnacles 0.33 - - 5,461,000 6.28 1,575,000 4.14 7,035,000 5.80
TOTAL - - 5,461,000 6.28 1,575,000 4.14 7,035,000 5.80
TIN EQUIVALENT
(Sn_EQ)
Cut-off
Sn_EQ %
Measured
tonnes
Grade
Sn_EQ
%
Indicated
tonnes
Grade
Sn_EQ
%
Inferred
tonnes
Grade
Sn_EQ
% Total tonnes
Grade
Sn_EQ
%
Gillian 0.2 1,105,000 0.91 1,563,000 0.75 930,000 0.77 3,599,000 0.81
Pinnacles 0.33 - - 5,461,000 0.50 1,575,000 0.47 7,035,000 0.49
Deadmans Gully 0.18 - - 444,000 0.49 - 0.00 444,000 0.49
Windermere 0.25 - - 829,000 0.40 1,211,000 0.41 2,040,000 0.41
TOTAL 1,105,000 0.91 8,296,000 0.54 3,716,000 0.53 13,118,000 0.56
Sn equiv alent is based on the following Formula, product pricing and metallurgical recov eries;
(Sn%)+(Fe%*0.75*(150/20,000))+(F%*0.7*(400/20,000))
Sn = AU$ 20,000/tonne,
Fe = 75% recov ery @ AU$ 150/tonne
F = 70% recov ery @ AU$ 400/tonne
REC = Recov ery
Sn%+(Fe%*FeREC*Fe$/t/Sn$/t)+(F%*FREC*F$/t/Sn$/t)
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30th of September 2013
inventory of potential ore and development tonnes. The current design anticipates the extraction
of 8.4 Mt of ore for processing over the initial mine life.
PFS mine design was based on more conservative recovery assumptions than test results
indicated. This leaves potential for an increase to the mining inventory and mine life extension.
Gillian and Pinnacles mining inventory contains 12% and 5% Inferred Mineral Resources
respectively.
There is a lower level of geological confidence associated with inferred mineral resources, and
there is no certainty that further exploration work will result in the determination of indicated
mineral resources or that the production target itself will be realised.
3. INFRASTRUCTURE
The project site is well-positioned relative to major infrastructure. Access is by National Highway
One (Kennedy Highway) that runs through the project area (refer Figure 1: Key Project Map). The
Mt Garnet Concentrator is adjacent to this highway and centrally located 9 kms east and west
from the Gillian and Pinnacles resources respectively.
Figure 1: Key Project Map
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30th of September 2013
Port facilities at Mourilyan and Townsville are located 145km and 450km respectively from the Mt
Garnet Concentrator via all-weather highway.
Power will be obtained from the local power grid. Power allocation and a transformer sub-station
are already established at the project site.
The project is serviced by the township of Mt Garnet with primary school, police station, fuel and
general provisions available, plus an established workforce now operating the Snow Peak owned
concentrator. A regional hospital is located in Atherton with Cairns Base hospital within one hour
flight.
4. MINING METHOD
Prism Mining was commissioned by CSD to undertake the mining studies associated with the Mt
Garnet PFS. Mining method will be by open cut with an average mining cost per tonne of
A$24.25/t. Pit designs were based on Whittle optimisation shells generated using preliminary
operating cost estimates. Mine development and operation is reflected as contractor mining in
the PFS.
Ore will be transported to the Mt Garnet concentrator subject to final agreement with Snow Peak.
5. MINERAL PROCESSING
Extensive metallurgical test programs have been completed to date by ALS AMMTEC Ltd, Burnie
Research Laboratory (BRL), CSIRO, Walk Institute, Downer EDI, Nagrom and Newcastle Institute for
Energy & Resources (NIER) led by CSD Senior Metallurgist Mr Bob Shelley. These programs have
confirmed the metallurgical recovery characteristics of the Mt Garnet ore.
The Company commissioned Como Engineering to complete the mineral processing component
of the PFS, including capital estimates for the reconfiguration of the Mt Garnet concentrator.
The essential elements of the process plant design include the following primary comminution and
flotation stages:
Multi-stage crushing
Primary grinding using the existing SAG mill and ball mills with one additional ball mill added
from existing grind circuit
Reverse Silica flotation through a series of conventional flotation cells with rougher and
cleaner cells with additional primary cells added
The combined high iron concentrate material containing tin will report to final filter where moisture
is extracted prior to being pelletised and fed to the tin roasting circuit.
Tin fume at 68% Sn will be recovered through a gas handling system consisting of gas cooling,
followed by a series of filters (Bag House) with continuous recovery of SnO2 as a solid prill for
dispatch to smelters. Final gas cleaning and lime scrubbing will ensure release of clean air to the
atmosphere.
Magnetite will be continuously recovered from the rotary kiln discharge where it will be cooled
and conveyed to the magnetite stockpile for dispatch to port.
Process water is available from water bores and an existing external water supply dam.
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30th of September 2013
The process tails will be transferred to a tailings thickener to facilitate water conservation followed
by deposition in a tailings storage facility. Tailings water will be reused in the process.
Various conventional flotation and flocculent chemical additives will be used in the process.
Figure 2: Simplified Process Flowsheet
It is intended that, with the addition of tin processing equipment, Consolidated Tin’s ore from the
Mt Garnet Project will be processed at the existing Snow Peak Mt Garnet concentrator. CSD and
SPM are working cooperatively to finalise agreement on the utilisation of the concentrator and a
binding agreement is expected Q4 2013.
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30th of September 2013
6. FINANCIAL EVALUATION
6.1. Capital Expenditure
Capital and operating costs defined in the PFS are competitive when compared to other tin
development projects. The upfront capital estimates for the Mt Garnet project are significantly
reduced through the use of an existing and established processing facility.
Total capital estimated to first production for the Mt Garnet Project is A$76M.
Table 5: Mt Garnet Tin Project Capital Estimate to First Production*
Capital Expenditure Breakdown A$M Cost Estimates
Mine Infrastructure 1.8
Existing plant reconfiguration 32.1
Roasting / Tin fuming 40.6
Tenure & Environmental 1.5
TOTAL 76
* see page 14 for a summary of assumptions used for the Mt Garnet PFS
Prism Mining and Como Engineers have developed the project capital cost estimate in
Australian dollars (A$). Accuracy of the mining capital estimate is ± 20% and processing
capital estimate is ± 25% for Gillian and ± 35% for Pinnacles.
Prism based their mining capital and operating cost estimates on current costs for Australian
mining contractors.
The processing plant capital estimate has been prepared by Como based on quotes for key
equipment and current known equipment prices, and fabrication and construction rates at
the time of the study.
The Tailings Storage Facility (TSF) capital cost provided by Prism is based on the construction of
an engineered dam to create a minimum five year storage capacity. Construction costs are
based on rates for earthworks from local contractors. This tailings facility will be used
throughout the project with subsequent engineered dam lifts as required.
The project will utilise the existing administration and mine offices, laboratory, and personnel
facilities now owned by Snow Peak Mining.
6.2. Operations Costs
Estimated average annual operating costs is $91.94/t FOB as outlined in Table 6.
The key components of the operating cost estimate include:
Open cut mining by contractor
Operations management, technical and supervisory workforce developed by CSD
Power supply from the national grid
Repairs, maintenance spares and consumables allowances
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30th of September 2013
The proximity to key infrastructure facilities of power, water and all-weather roads provides the
Mt Garnet Project a significant advantage above similar development projects.
Table 6: Mt Garnet Tin Project Operating Cost Estimates FOB
Operating Expenditure Breakdown A$/t ore
Mining Cost (Inc Overheads) 24.25
Processing Cost (Inc Overheads) 49.59
Cost of Sales 4.12
Ore Haulage/Concentrate Freight Cost 13.98
FOB Total Operating Cost 91.94
* see page 14 for a summary of assumptions used for the Mt Garnet PFS
The operating cost estimates are presented in A$ and are based on information provided by
Prism for consumables, energy and local labour rates. The order of accuracy of the operating
cost estimate is ± 20%.
6.3. Sensitivity Analysis and Payback –tin price A$24,000/t, exchange rate A$0.95c/US$1.00
OPEX = 91.94/t, CAPEX = 76M
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Sensitivity Table
Option IRR % NPV @8% NPV @10% NPV @12%
Sales Price (-10%) 55% $ 56,643 $ 49,369 $ 43,068
Sales Price (-5%) 80% $ 83,578 $ 73,803 $ 65,319
Sales Price Base 111% $110,292 $98,053 $87,416
Sales Price (5%) 150% $ 136,589 $ 121,957 $ 109,224
Sales Price (10%) 199% $ 162,887 $ 145,861 $ 131,032
Mining Costs (-10%) 123% $ 119,510 $ 106,417 $ 95,033
Mining Costs (-5%) 117% $ 114,901 $ 102,235 $ 91,225
Mining Costs Base 111% $110,292 $98,053 $87,416
Mining Costs (5%) 105% $ 105,682 $ 93,871 $ 83,608
Mining Costs (10%) 100% $ 101,006 $ 89,633 $ 79,752
Procesing Costs (-10%) 132% $ 128,622 $ 114,572 $ 102,360
Procesing Costs (-5%) 121% $ 119,457 $ 106,312 $ 94,888
Procesing Costs Base 111% $110,292 $98,053 $87,416
Procesing Costs (5%) 102% $ 101,043 $ 89,725 $ 79,886
Procesing Costs (10%) 92% $ 91,573 $ 81,211 $ 72,202
Transport to Port (-10%) 116% $ 113,922 $ 101,343 $ 90,408
Transport to Port (-5%) 113% $ 112,107 $ 99,698 $ 88,912
Transport to Port Base 111% $110,292 $98,053 $87,416
Transport to Port (5%) 109% $ 108,476 $ 96,408 $ 85,920
Transport to Port (10%) 107% $ 106,661 $ 94,764 $ 84,424
Transport to Plant (-10%) 112% $ 111,871 $ 99,468 $ 88,688
Transport to Plant (-5%) 112% $ 111,081 $ 98,760 $ 88,052
Transport to the Plant Base 111% $110,292 $98,053 $87,416
Transport to Plant (5%) 110% $ 109,502 $ 97,346 $ 86,780
Transport to Plant (10%) 110% $ 108,712 $ 96,639 $ 86,145
CAPEX (-25% Gillian, -30% Pinnacles) 262% $ 128,295 $ 115,472 $ 104,263
CAPEX Base (0%) 111% $110,292 $98,053 $87,416
CAPEX (+25% Gillian, +30% Pinnacles) 63% $ 92,133 $ 80,504 $ 70,461
Exchange rate (0.85) 217% $ 170,733 $ 152,989 $ 137,531
Exchange rate (0.90) 153% $ 138,834 $ 123,995 $ 111,082
Exchange Rate Base (0.95) 111% $110,292 $98,053 $87,416
Exchange rate (1.00) 81% $ 84,203 $ 74,372 $ 65,838
Exchange rate (1.05) 58% $ 60,398 $ 52,779 $ 46,176
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Payback Table
7. ENVIRONMENT
Landline Consultants have conducted requisite baseline studies with the mining project
Environmental Management Plan nearing completion. During the course of these studies no
endangered species or local water quality risks have been identified. Current testing indicates no
damaging or harmful materials in the mined and processed material.
The processing facility is currently established with Environmental Authority and mandatory
Environmental Financial Assurance in place for existing processing activities.
The Mt Garnet region is a historical mining and processing area with significant legacy
disturbance.
8. COMMUNITY
The mining project is located in close proximity to the township of Mt Garnet which was founded
on mining in the late 19th century. Mining continues in the immediate and wider Herberton Tin
Field area to the present day. Other townships close to the project are Ravenshoe, Atherton,
Herberton, Mareeba and Cairns.
The community continues to support the mining industry. It is expected that the majority of
required personnel will be sourced locally. The community in the vicinity of the project will benefit
from increased employment opportunities and the economic flow on from the provision of goods
and services to the project.
0 0 0
1 1 1
2 2 2
3 3 3
4 4 4
5 5 5
6 6 6
7 7 7
8 8 8
9 9 9
$90,166
$104,969
$110,292
$12,191
$32,618
$46,252
$60,809
$78,266
Project Net Present Value @ 8%
Year Present Value ($ AUD '000)
$0
-$31,524
Project Net Present Value @ 10%
Year Present Value ($ AUD '000)
$0
-$30,388
$10,986
$29,967
$42,406
$55,445
$70,798
$81,073
$93,623
$98,053
Project Net Present Value @ 12%
Year Present Value ($ AUD '000)
$0
-$29,312
$9,884
$27,546
$38,913
$50,616
$64,150
$73,045
$83,716
$87,416
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9. ASSUMPTIONS
CSD has researched tin and iron ore markets as well as reviewed broker consensus for both the
respective commodities and the forecast US$:AU$ exchange rate. For the purpose of the Mt
Garnet PFS, CSD applied what is considered to be a realistic base case view of the future
commodity price assumptions.
Tin price: A$24,000 per tonne
Iron ore price: A$150 per tonne
Fluorine price: A$400 per tonne
US$/A$ exchange rate: $0.95
This initial market review indicates that the concentrates can realistically be sold for the values
used in the calculation at the present time.
Mining inventory includes Inferred and Indicated Mineral Resources that have had mining dilution
and recovery factors applied to the mine design creating an inventory of potential
developmental tonnes of 8.4M.
The key assumptions for the cost estimate are:
Mine development by contractor mining employing local skilled and semi-skilled
personnel
Company mine development/management support team
Utilising current Snow Peak equipment and facilities where possible
Finalising agreement with Snow Peak as a priority
Based on purchase of all new equipment
10. OPPORTUNITIES
A range of specific opportunities to optimise the project and enhance financial performance
have been identified for evaluation during the DFS:
Operating mining cost can be reduced significantly with mine design optimisation through
completing geotechnical drilling and evaluation to optimise mine design and reduce strip
ratios. This work is planned to commence in October 2013
Potential development of partnership with a boutique offshore iron smelter to incorporate
tin fuming, leading to reductions in CAPEX and OPEX without a material increase in freight
cost
The current market downturn creates opportunity for significant savings on capital
equipment and operating consumables
Company strategy is to continue exploration of other known mineralisation in the current
tenement holding to confirm additional Resources to increase mine life
Potential improvement to recovery of more contained tin metal in the current mining
inventory of 44,000t
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11. RISKS
A number of key risks have been identified, which the company will continue to review and
manage accordingly. The risk identified may impact (either positively or negatively) on the
economics of the Mt Garnet Tin Project development.
These risks include, but not limited to:
Commodity price and foreign currency exchanges rates
Capital and operating costs
Processing optimisation and recoveries
Project financing terms
ENDS
For further information please contact:
Ralph De Lacey Darryl Harris
Managing Director Director
M: +61 428 163 176 M: +61 419 908 645
E: [email protected] E: [email protected]
W: www.csdtin.com.au
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
Resource base of 8Mt-10Mt of tin ore from its three deposits, to feed a proposed centralised mill and
process about 1Mt per annum to produce about 5,000 tonnes of tin per annum.
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Consolidated Tin Mines Limited ANNOUNCEMENT
ASX/MEDIA RELEASE
30th of September 2013
Competent Persons Statements
The information in this announcement that relates to Mineral Resource is based on information compiled by Mr
Michael Andrew, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy.
Mr Andrew is a Principal of Optiro Pty Ltd and has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the activity currently being undertaken to
qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves’. Mr Andrew consents to the inclusion in this
announcement of the matters based on his information in the form and context in which it appears.
The information in this announcement that relates to Processing Engineering Capital and Operating Estimates is
based on information reviewed by Mr Alisdair Finnie (B.Sc., Grad Dip. Min Sc, MAusIMM). Mr Finnie is Processing
Engineering Manager of Como Engineers and has 15 years of relevant experience in these areas of work. Mr
Finnie consents to the inclusion in this announcement of the matters based on information provided by him
and in the form and context in which it appears.
The information in this announcement that relates to mine design, mine costing, and capital costs for mining is
based on information reviewed by Mr Richar Guerra, a Competent Person who is a Member of the Australasian
Institute of Mining and Metallurgy. Mr Guerra is a consultant working for Mine RP Ltd and was engaged by Prism
Mining Pty Ltd to prepare the mine design, mine costing and mining costs for Consolidated Tin Mines Limited
PFS report. Mr Guerra has sufficient experience that is relevant to the style of mineralisation and type of deposit
under consideration and to the activity currently being undertaken to qualify as a Competent Person as
defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves’. Mr Guerra consents to the inclusion in this announcement of the matters based on his
information in the form and context in which it appears.
Forward-Looking Statements
Certain statements made in this announcement, including, without limitation, those concerning the pre-
feasibility study, contain or comprise certain forward-looking statements regarding Consolidated Tin Mines
Limited’s (CSD) exploration operations, economic performance and financial condition. Although CSD
believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can
be given that such expectations will prove to have been correct. Accordingly, results could differ materially
from those set out in the forward-looking statements as a result of, among other factors, changes in economic
and market conditions, success of business and operating initiatives, changes in the regulatory environment
and other government actions, fluctuations in metals prices and exchange rates and business and operational
risk management. CSD undertakes no obligation to update publicly or release any revisions to these forward-
looking statements to reflect events or circumstances after today's date or to reflect the occurrence of
unanticipated events.