THE DRILL SERGEANT: Elementos Limited (ASX: ELT) released results of a review of the Mineral Resource for the company’s Cleveland copper and tungsten project in Tasmania.
The JORC Code (2012)-compliant Resource review was independently prepared by Mining One Consultants and was undertaken to assess the potential of developing part of the Cleveland Mineral Resource as an open pit mine.
Elementos explained it considers developing an open pit mine could provide an important link between the Tailings project at Cleveland, which it has plans for first production in 2016, and the Underground Redevelopment project.
The open pit Indicated Mineral Resource has been defined (using a 0.35 per cent tin cut-off grade) at 828,000 tonnes at 0.81 per cent tin and 0.27 per cent copper.
Elementos indicated it now has scoping and exploration target studies planned to investigate the synergies between the three Cleveland project sites, which it anticipates will help to determine the optimal development pathway for each.
“The outcome of the review of the Cleveland Mineral Resource is outstanding, and we are excited about the development potential of the Open Pit Mineral Resource, due to its high-grade and potential synergies with the Tailings and Underground projects,” Elementos managing director Calvin Treacy said in the company’s announcement to the Australian Securities Exchange.
“We will quickly quantify the benefits of the Open Pit project, with the scoping and exploration target studies.
“The company’s focus remains on the Cleveland Tailings project and getting into production as quickly as possible.
“An open pit development links the Tailings project to the Underground project, and supports our overall development strategy for the Cleveland
Elementos is currently seeking interest from independent consultants to complete Scoping Studies for the Cleveland Open Pit project and the Underground Redevelopment project.
On completion of the Scoping Studies, the company intends to undertake Pre-Feasibility Studies to convert Mineral Resources to Ore Reserves.