What the Analysts Say
WHAT THE ANALYSTS SAY: This week our team of experts run the ruler over Elementos and Pilbara Resources.
Website: www.beerandco.com.au
Elementos Limited (ASX: ELT)
The Cleveland tin‐copper mine was operated by Aberfoyle, from 1969 to 1986.
It closed due to the tin price collapse.
Elementos has published a pre‐feasibility study on re‐processing the existing tailings, and scoping studies on developing a small open cut resource and re‐starting under‐ground operations.
Cleveland has tin‐copper resources, with a tungsten deposit at depth.
Elementos has published a PFS to re-process 3.7 million tonnes of tailings, grading 0.30% tin and 0.13% copper, at a rate of 650,000 tonnes per year, recovering 47% of the tin, producing 900 tonnes per year of tin at an all-in cost of US 467 censt per pound.
The tailings project is expected to come into operation during 2017 at a capital cost of $21 million.
It will generate enough cash, even at today’s prices, to develop opportunities identified in published scoping studies on hard rock operations, including a tungsten Resource at depth.
Cleveland, Tasmania
Cleveland is a tin‐copper deposit that was mined by Aberfoyle until 1984, and shut when the tin price collapsed.
It is about 60 kilometres from Burnie in North‐ West Tasmania.
Elementos’ Development Plan
There have been significant advances in tin metallurgy since Cleveland was first developed, with advances in gravity technology for finer grained material, plus flotation and leaching.
Elementos’ testwork confirms modern gravity and flotation technology with re‐grind and leaching of the tails should recover 47% of the tin to a concentrate grading 51% tin from the tailings.
Later Stages
Elementos has published Resource estimates of:
6.6 million tonnes under‐ground, grading 0.63% tin and 0.25% copper; and
A separate tungsten Inferred Resource of 4 million tonnes grading 0.3% tungsten.
These will be developed subsequently.
Elementos will generate sufficient cash from the tailings operations that it will not need to raise further equity for later development.
Website: www.beerandco.com.au
Pilbara Minerals (ASX: PLS)
Pilbara Minerals has 100% of the Tabba Tabba tantalite project, which is expected to be in production in September 2015.
In May 2014, Pilbara Minerals announced the acquisition of 100% of Pilgangoora, 55 kilometres from Tabba Tabba in the Pilbara region.
Pilbara Minerals is progressing a feasibility study for Pilgangoora and is awaiting a permit to begin production at Tabba Tabba
Tabba Tabba first product delayed to November
The delays continue, but Pilbara Minerals is funded to cover this problem.
Increased Resource Estimate, PLUS increased Exploration Target
Pilbara Minerals announced an increase in its Resources Estimate from 23.8 million tonnes to 5.2 million tonnes, PLUS an increased Exploration Target, from 50 – 60 million tonnes to 80 – 90 million tonnes.
This makes Pilgangoora the second largest hard rock spodumene deposit in the world, after Greenbushes, which has 120 million tonnes in Resources in December 2012.
Pilbara Minerals’ previous Resource estimate was in July.
The rate of increases shows that it clearly has the potential to be the largest deposit in the world.
Strong Demand
Due to strong demand for lithium, due to Electric Vehicles and emerging off‐grid battery demand, coupled with supply uncertainties, Pilbara Mineals has signed MOUs for more than 200,000 tonnes per year of lithium oxide (Li2O) concentrate.
Pilbara Minerals reported, in presentations, of prices up to US$ 450 per tonne for low iron, 6% Li2O, concentrate for chemical or battery grade, and higher prices for very low iron concentrate for industrial (glass or ceramic) applications.
Disclaimer: The above is intended as a guide only. The Roadhouse accepts no responsibility for investments made from this advice, successful or otherwise.
The views, opinions or recommendations of this article do not in any way reflect the views, opinions, recommendations, of The Resources Roadhouse.
The Roadhouse makes no representation or warranty with respect to the accuracy, completeness or currency of the content. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian financial services licensee before making investment decisions.