Elementos Limited (ASX:ELT) (OTCMKTS:ELTLF) (FRA:9EM) has confirmed further zones of tin mineralisation in its campaign to convert existing inferred resources into indicated resources at its flagship Oropesa Tin Project in Spain.
Assays for four diamond drill holes completed in December 2020 have been received from the ALS laboratory in Galway, Ireland.
Best results are:
- 4.8 metres at 0.30% tin from 22 metres;
- 14.5 metres at 0.38% from 43 metres;
- 7.1 metres at 0.33% from 10.3 metres; and
- 41.9 metres at 0.20% from 132.9 metres.
The company started 5,000 metres of diamond drilling across 47 holes at Oropesa in early October 2020 as part of a wider optimisation program designed to increase the project’s overall resource, annual production rate and mine life.
“Enhance overall value”
Elementos chairman Andy Greig said: “The resource conversion drilling program continues to meet the company’s objectives.
“The combination of the successful drilling program and the significantly improving tin price will enhance the overall value of the project.”
The drilling program follows the release of an economic study in May 2020, which positioned the project as a low-cost, globally significant new tin development with prospective annual production of 2,440 tonnes of tin-in-concentrate over a 14-year mine life.
This study was completed with a tin price of US$19,750 per tonne, and currently, the LME tin price is over US$24,000 per tonne.
The drilling program currently includes 47 diamond drill holes but may be modified as required based on results as they are received.
This program’s three principal objectives are:
- To convert existing inferred resources into indicated resources to improve the overall waste-to-ore stripping ratio;
- Confirmation of near-surface, possibly fault-controlled mineralisation that is currently excluded from the 2017 geological resource model; and
- Testing for additional near-surface resources from exploration targets identified from Induced Polarisation (IP) geophysical survey anomalies.