THE BOURSE WHISPERER: Elementos Limited (ASX: ELT) has agreed to merge with unlisted Australian company Rockwell Minerals.
Elementos is an Australian copper and gold exploration company, with projects in Argentina, Chile and Australia.
Rockwell Minerals brings to the merged table its 50 per cent interest in the advanced Cleveland tin and tungsten deposits in Tasmania.
Location map. Source: Company announcement
The Cleveland project was operated by Aberfoyle between 1968 and 1986, producing tin and copper concentrates.
The mine produced around 5.6 million tonnes of tin and copper ore grading 0.68 per cent and 0.28 per cent respectively, producing 23,519 tonnes of tin and 9,691 tonnes of copper in concentrates.
The mine closed due to the low tin prices in the late 1980s.
Elementos said it expects metallurgical recoveries and concentrate grades will be improved in a modern-day concentrator using the latest technologies available for tin recovery.
“The mine was developed down to approximately 400 metres below the surface, the underground decline and stopes are still available for access to the known deposits of tin and tungsten,” Elementos said in its ASX announcement.
“There is a four kilometre decline and approximately eleven kilometres of underground development in place, mine access will be restricted until dewatering and rehabilitation is completed.”
According to Elementos the Cleveland project is a sizeable tin and copper deposit, at which a separate tungsten deposit remains, including a large low-grade tin tailings dam.
The company indicated a JORC-compliant tin and tungsten resource report is being finalised from a database comprising more than 1,977 drill holes (over 134,000 metres) and 75,000 assay points.
The acquisition is subject to completion of due diligence, finalisation of an implementation deed, and shareholder and statutory approvals.