ELT - Elementos Limited

[Miner]

Hi All

This IPO is in the market and MPS is underwriting this. ORE shareholders are getting a priority allotment so are the clients from MPS.

I would be interested if any one can give some highlights up or down about this IPO. Market is difficult to assess considering MYER IPO got south and Kathmandu IPO got north.

Some extract for heads up

Elementos is offering up to 33,000,000 fully paid ordinary Shares at $0.25 (25 cents) per Share to raise $8,250,0000 in an Initial Public Offering. Martin Place Securities Pty Ltd is Sponsoring Broker and has Underwritten $6,250,000 of the IPO.



An overview of Elementos is as follows:

· Elementos (ELT) has been established through the spin-out of primarily copper-gold assets of Orocobre Limited (ASX: ORE)

· The key project is the major copper gold molybdenum project in Argentina

· ELT will be targeting resources in established world-class and emerging mineral provinces, focusing on gold and base metals as a priority

· ELT will IPO with six projects in three mineral provinces in two countries, Argentina and Australia

· Argentina − Projects located in San Juan province which is now established as a world class minerals province. The properties include: Santo Domingo copper-gold porphyry and Manantiales gold-silver epithermal vein

− The key Santo Domingo project - large ground position established – 215km², targeting major copper-gold-molybdenum porphyry system with three major target zones identified.

− Manantiales - located directly north and adjoining Troy Resources’ Casposo gold project

− Manantiales has two main target areas with strongly anomalous geochemistry, Manantial - the strike extension of the Casposo main reserve and La Puerta - the strike extension of the TRY’s Julieta vein zone

· Australia – Project located around Mt Isa (Inlier minerals province) and Northern NSW.

− Mt Isa prospect comprises the Millenium cobalt project Mt

− Northern NSW comprises prospective emerging minerals province with gold and polymetallic mineralisation targets

· IPO targeting raising $6.25M - $8.25M to fund exploration over the next 2 years

· Elementos’ prospectus was lodge on 6 November 2009 with Shares now being offered at $0.25 per share, with a minimum application of $2,000 (8,000 shares)

· Elementos’ share offer opened on 16 November 2009 and closes on 7 December 2009, with Shares expected to commence trading on the ASX on 17 December 2009

 

[springhill]

Current SP - 7c
Shares - 82m
Options - 9.7m (varies expiries and strike price)
Cash - $2.6m
MC - $5.7m

Mercedes
Highlights
• At the Elvira porphyry prospect, IP geophysics identifies a weak chargeability anomaly at a depth considered uneconomic
• Copper oxide potential remains prospective, to be assessed through on-going mapping and sampling programs

MANANTIALES
Valentina Vein
The Valentina vein is situated 2.5 kilometres east of the Manantial vein and 2.5 kilometres west of the La Puerta prospect. Initial representative rock chip samples have returned high-grade gold values with anomalous silver.
Highlights include:
• Three high-grade rock chip samples returning 17.9 g/t gold and 36 g/t silver, 12.7 g/t gold and 26 g/t silver, and 10.1 g/t gold and 27 g/t silver;
• An additional five rock chip samples above 4.0 g/t gold including peaks of 8.59 g/t gold and 9 g/t silver; and
• The structure remains open along strike with samples in the northern and southern ends returning 6.91 g/t gold and 12.7 g/t gold respectively
Update
• A cluster of new prospective vein targets identified in close proximity to the Manantial, Manantial Este and La Puerta veins
• Initial rock chip sampling at the new Valentina vein prospect returned high grade gold up to 17.9 g/t and silver up to 36 g/t
• Potential for multiple new high-grade gold-silver vein systems within the Manantiales project
Other New Vein Systems
A number of additional, relatively unexplored, vein targets have been identified. Initial sample results include:
• Colorados - a quartz-calcite vein 150 metres long and 0.5 to 2 metres wide. Channel sampling returned best values of 0.5 metres at 5.38 g/t gold, 0.8 metres at 2.16 g/t gold and 0.65 metres at 0.89 g/t gold;
• Colorados Sur - two parallel quartz–calcite veins, 1.5 km south of Colorados. Channel sampling returned best values of 0.64 metres at 1.48 g/t gold and 1.5 metres at 0.79 g/t; and
• Gabo vein - located 0.8 km east of Colorados vein. A 190 metre long quartz–calcite vein in discrete outcrops with widths between 0.5 to 7 metres. Channel sampling returned best values of 0.68 metres at 3.15 g/t gold, 0.57 metres at 2.26 g/t gold, 0.82 metres at 1.85 g/t gold and 1.15 metres at 1.43 g/t gold.


Tamaya
For full information about Tamaya see investor presentation below.
http://www.asx.com.au/asxpdf/20120712/pdf/427cpkdz5sd1mg.pdf
Manantiales

Santo Domingo
Partnering Strategy
The Company believes the two recent geophysical programs, in conjunction with the extensive investment in exploration over the last three years, have demonstrated that Santo Domingo has strong potential to host a world-class porphyry deposit. Defining and ultimately developing the potential resources will require a substantial investment, including additional geophysics, deep drilling and related infrastructure. The board considers that the best strategy is to seek a joint venture partner, with the financial capacity to explore and develop a large porphyry target, to complement the Company‟s technical understanding of the project.
Divisoria Phase II Geophysical Survey Results
The results of the second phase geophysical survey demonstrates a large, high-chargeability anomaly closely correlated with the magnetic low, disseminated gold–copper mineralisation and contact-breccias already recognised on surface. The anomaly is 1,000 by 600 metres in size and interpreted as approximately 300 metres deep, remaining open to the north, south and at depth.
The survey incorporated four lines totalling 7.5 linear-kilometres of both Pole-Dipole Induced Polarisation (“PDIP”) and Audio Magneto Telluric (“AMT”) geophysics.
The aim of the PDIP survey was to identify chargeability anomalies (potential zones of sulphide mineralisation) at shallow to moderate depths beneath the surface. The results are highly encouraging and demonstrate a pattern of chargeability and resistivity within magnetic low areas. This potentially relates to porphyry mineralisation over a larger area than mapped on surface.
The AMT survey tested the resistive response of the rock down to approximately 800 metres depth, beyond the depth potential of the PDIP. Unfortunately, this survey produced poor quality data and lacked resolution at depth on three of the four lines, and was considered unreliable.

MILLENIUM
• Two further Exploration Permits approved in the world-class Mt Isa district
• Elementos now holds 248 km ² of exploration permits over a mineralised trend, in close proximity to deposits including Rockland, Roseby and Dugald River
• Exploration on the company’s existing Mining Leases1 on the Corella fault zone has identified strong copper, cobalt, gold and Rare Earth Element anomalies
Next Steps
The Company is currently working towards the consolidation of its land package in the district. Outstanding ground positions to be secured include:
• 74 km ² of additional EPMs subject to granting; and
• Exercise of the Option-to-Purchase agreement with Forte Energy NL to acquire 134 Hectares of Mining Leases. The Mining Leases are currently subject to renewal and this process is nearing completion.
Future exploration activities will involve:
• Ground-magnetometry geophysical surveys of the Corella structure, including the zone of cobalt and copper anomalies already identified;
• Drilling to confirm the cobalt and copper grades from historical drill holes;
• Testing for the presence of Rare Earth Elements and Yttrium; and
• Drilling deeper into structures showing mineralisation.


CATHEDRAL ROCKS
There were no exploration activities at Cathedral Rocks during the quarter.

Tightly held, rarely traded, has drifted on very low volume over the last 6 months. Manantiales looks to far out of the way of historic discoveries. Tamaya is slightly to the left of a line of existing mines, and with a little bit of luck could be something. I will be watching this.

 

[springhill]

TAMAYA IP GEOPHYSICS PROGRAM TO TEST FOR PORPHYRY AND STRUCTURALLY RELATED MINERALISATION

Elementos announce a planned second phase geophysical survey at the Tamaya Project, central Chile.
The Induced Polarisation Pole-dipole (“IPPD”) survey will test for two styles of mineralisation:
• Porphyry mineralisation in the eastern sector as indicated by the encouraging results of the recent mapping, sampling and ground magnetometry survey; and
• Structurally related mineralisation in the three main north-south structural trends, including the main vein that was historically mined for high-grade copper (sulphide) mineralisation.

Porphyry Target
The ground magnetometry survey completed in April 2012 outlined a large magnetic anomaly (Figure 1) that is related with evidence of porphyry mineralisation in the eastern sector of the property. The IPPD survey will test for chargeability anomalies (the presence of potential sulphide mineralisation related to the porphyry) within the magnetic anomaly.
Moreover, Elementos’ mapping has identified evidence of potential porphyry related mineralisation similar to that at the Carmen de Andocollo mine, 40 kilometres to the north, and at the Llhaium deposit, 85 kilometres to the south, including:
• Porphyry clasts with disseminated mineralisation within breccia structures in the Eastern zone;
• Strong potassic alteration in association with the high-grade mineralisation in structures in the Eastern and Central zones, grading to moderate in the Northern and Tortolas prospects;
• Multiple porphyry mineralisation related features, including:
o Calcite-sulphide veining with very high-grade copper mineralisation;
o Phreatomagmatic breccias, including a magnetite rich matrix and minor copper mineralisation in the matrix and as clasts;
o Silica-sulphide breccia, veinlets and stockwork with 2% to 7% copper;
o Tourmaline breccias with minor disseminated mineralisation in the matrix; and
o “A-type” texture veinlets and stockworking in the Eastern, Central and Tortolas prospects with calcite, silica or magnetite-specularite fill.

 

[frugal.rock]

A 10 year chart and a 3 month chart.
Possibly emerging out of dormancy.
FA has a sensitive announcement today? Tin.
I suspect this PFC is worth further investigation.

 

[Miner]

Last posting on ELT was in June 2012. Definitely the stock was dormant after waking it up today with 37 pc rise and that instigated @frugal.rock also LOL - Happy NY

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[frugal.rock]

Last posting on ELT was in June 2012. Definitely the stock was dormant after waking it up today with 37 pc rise and that instigated @frugal.rock also LOL - Happy NY

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Certainly something doing.
Might just go back to festering, it really depends on the catalyst at the moment.
Not held.

 

[Miner]

Certainly something doing.
Might just go back to festering, it really depends on the catalyst at the moment.
Not held.

Ok.
When you decide to buy tell me

 

[kenny]

The slow progress management has been making transitioning their Spanish Tin project from Inferred resources to Indicated is getting more interesting.

Last May's Economic Study was made when Tin was below USD $20K/tonne. The LME tin price is currently over USD23,600 per tonne.

In the recent International Tin Association (ITA) report on resources;

"Only in the last few years have excess stocks been finally reduced to historically below-average levels, as supply has failed to keep up with demand. While there are short-term uncertainties relating mainly to global macro-economic conditions, the prospects for future tin demand are strong. As a result, ITA still believes that there is still a real need for new investment in modern, sustainable mine projects and that prices significantly higher than current levels are necessary to trigger this. There is a small but real possibility that a surge in production will occur due to the discovery of a world class tin deposit, such as has been seen in Myanmar between 2012 and 2015. The underexplored, vast mineral potential of South East Asia and Africa would make these likely locations, particularly if progress is made with development of infrastructure and channels for foreign investment. North America may see increased exploration soon, as the United States aims to reduce its reliance on imports of critical material.
...

While (the) ITA expects a shortage of tin mining capacity to develop over the next 5 years, but this is unrelated to the quantity of remaining tin in the ground, and rather a symptom of low investment in tin projects in depressed market conditions."

 

[frugal.rock]

Do you think the political situation in Myanmar is helping ELT ? @kenny
I notice you have made 3rd place in the comp today! Well done. ?

 

[kenny]

Thanks @frugal.rock I expect the market to focus on the Spanish project (Oropesa) over Myanmar but sovereign risk is a significant drag on valuation I would say. It's sadly actually one reason I'm not holding despite my interest.

 

[frugal.rock]

I believe Myanmar might be on the settle down?
ELT closing on $0.016, 0.002 or 14.3% up for the day.
I wonder, if things do settle down whether that will give the SP a boost?

 

[greggles]

ELT going for a nice little run on the back of an increase in the price of tin. Managed to get above 2c today and looks like it's going to say there... at least for now.

 

[Dona Ferentes]

U might be right on the tin story, though a play like ELT has slipped since that run in May; held around 20c for a couple of sessions but now back around 16c. There is a surging price for the commodity; this month the tin price on the London metal Exchange (LME) hit historic highs above US$36,000 per tonne.

Elementos wholly owns two world-class tin projects, with high-grades, large resource bases and plenty of exploration potential, in mining-friendly jurisdictions. Its flagship Oropesa Project in Spain, acquired in January 2020, is regarded as one of the world’s largest undeveloped, open-cut mineable tin deposits.

The company also owns the Cleveland project in Tasmania. Previously mined in 1908-1917 and 1968-1986, Cleveland has a hard-rock JORC Resource of 7.47 million tonnes (Mt) at 0.75% tin and 0.3% copper. In March, Elementos announced the resumption of exploration at Cleveland – a four-hole program that has been affected by an Australia-wide shortage of drilling rigs – but Oropesa is definitely the main game.

Oropesa has a JORC Mineral Resource from 2018 of 12.54 Mt at 0.54% tin, giving 67,500 tonnes of tin metal, enough for a prospective annual production of 2,440 tonnes of tin – in 62% concentrate – over a 14-year mine life. That resource breaks-down into 9.34 Mt at 0.55% tin in the measured and indicated categories – giving 50,900 tonnes of tin metal – and inferred resource of 3.2 Mt at 0.52% tin, for 16,600 tonnes of tin metal.

That comes from the project’s May 2020 “Economic Study,” which found that at a tin price of US$19,750/tonne, the mine could potentially generate an annual gross revenue of more than US$48 million against a forecast operating cost of US$28 million per year or cash cost of US$11,534/tonne of metal. With tin prices now above US$30,000/t this year, the metrics start to stack up very well.

Perhaps why Elementos chief executive Joe David says the company is now “accelerating Oropesa to production”.

“Further to the high level of project engineering and definition delivered by the Economic Study, the company announced in July that it was bypassing a Pre-Feasibility Study in favour of a Definitive Feasibility Study (DFS) after significant tin interceptions were returned from our recently completed 44-hole drilling program (with two re-drills, a 46-hole program),” says David.

“We are waiting-on the assays of a further eight holes (a common problem due to the recent metals price boom), but all up, we expect that our updated mineral resource estimate should be release to the market in October.

“Effectively the primary goal of that program is to increase the confidence in the inferred Resources into Measured and Indicated Resources – that means our Mineral Resource can then be used to support a DFS, and be used as the basis of a JORC Ore Reserve Statement, which is the ultimate techno-economic assessment of the economics of the mining project.”

David says if everything were to go flawlessly for Elementos, and the DFS is completed by the end of 2022, that would enable a final investment decision (FID) by mid- 2023. Assuming an 18-to-24-month construction process, Elementos could be producing concentrate in 2025 – into a tin market still expected to be in significant deficit. And given that the tin price should still be strongly supporting new investment – given that very little in the way of new production is expected – Cleveland could re-enter the production picture in 2026.

“Pretty much from 2020 onwards the ITA is predicting this 30,000 to 40,000 tonnes a year of tin metal deficit in the industry, widening after 2025. Our projects are taken into account in their supply forecast, and there’s still a 40,000 to 50,000 tonnes-a-year tin metal deficit when both our projects are producing. And given the forecast supply shortage in tin, which doesn’t have any natural substitutes, we definitely think the price should hold up to support investment in would class projects such as ours,” says David

 

[Country Lad]

Approval is probably a foregone conclusion.

Mining and Environmental regulatory documents submitted for the Oropesa Tin Project Highlights​

• Elementos submits key regulatory documents for the Oropesa Tin Project to the Junta de Andalucía
• Submission is key to attaining a mining license and environmental authorization for Oropesa
• Submission follows the recent assignment of Oropesa into the Andalucian Government’s Project Accelerator Unit which has potential to expedite approvals time frame
• Environmental Impact Study prepared with the support of ERM Environmental Consultants who have significant experience and expertise in Spanish mining projects

bought on the nice break today.

 

[Dona Ferentes]

Market cap of $18 million

.
Elementos' primary focus is on the Oropesa Tin Project in Andalucía, Spain, where it is advancing through regulatory approvals and conducting a Definitive Feasibility Study to formalize the project's technoeconomic parameters and financial returns. The ultimate goal is to secure financing and offtake agreements for the construction of the project, ultimately delivering the European market's first major tin mine.

Quarterly highlights for Elementos:

1. Maiden Zinc Resource Estimate: Elementos reported a significant development at the Oropesa Tin Project with a maiden Zinc (by-product) Mineral Resource Estimate (MRE) of 23.75 million tonnes at 0.42% Zn. This underscores the project's potential to contribute to zinc production as a valuable by-product.
2. Progress with Andalucían Authorities: The company is making headway in its discussions with Andalucían authorities regarding project approvals for Oropesa. Elementos remains engaged with all necessary government stakeholders, anticipating the resolution of administrative permitting affairs to move forward with the project.
3. Australian Government Recognition: The Australian government has added tin to its 'Strategic Minerals List,' emphasizing the importance of tin as a critical resource.
4. Tasmanian Government Support: Elementos is set to receive co-funding of $70,000.00 from the Tasmanian government for tungsten and tin exploration at Cleveland, Tasmania, highlighting the government's commitment to supporting critical metal exploration.
5. Chairman's Support: Elementos Chairman has provided a $2.0 million loan facility, demonstrating strong support for the company's initiatives and growth prospects.

Oropesa Tin Project – A Strategic Asset

The Oropesa Tin Project, located in the Guadiato Valley, Andalucía, Spain, is strategically positioned within the European Union and has one of the world's largest undeveloped open-cut tin deposits. With access to world-class infrastructure, the project is well-positioned for development.

Elementos is in advanced stages of the Definitive Feasibility Study for Oropesa and is in ongoing negotiations with authorities to secure major project approvals. The company is actively engaged with Andalucían government stakeholders, both departmental and political, and believes that significant progress has been made towards resolving major issues related to project modifications and licensing.

Maiden Zinc Resource Estimate

Elementos announced a maiden zinc Mineral Resource Estimate of 23.75 million tonnes at 0.42% Zn for the Oropesa Tin Project in November 2023. This development allows Elementos to recover and produce a saleable zinc concentrate, offering environmental, mining, and economic benefits alongside tin production.

The incremental costs associated with zinc production are expected to be relatively minor, making it a viable by-product stream to consider for inclusion in the project's Definitive Feasibility Study.

Zinc production will not impact the main tin concentrate production at Oropesa, and the previously reported Tin MRE remains unchanged at 19.6 million tonnes at 0.39% Sn.

 

[Dona Ferentes]

and , updating

Elementos has announced the restart of Definitive Feasibility Study and licensing activities for the Oropesa Tin Project after reaching an agreement with the Andalucian Government regarding modifications to the project layout. These modifications aim to improve environmental and community outcomes.

The agreement reaffirms the Administration's support for the Oropesa project, which remains one of seven key mining projects in the Government’s Project Accelerator Unit. Primary license submissions will be resubmitted in accordance with the new layout modifications.

Revised project dates are as follows:

1. Resubmission of Primary License Documentation: Q3-CY2024
2. Completion of Definitive Feasibility Study: Q4-CY2024
3. Targeted receipt of primary (environment/ mining) licenses: Q4-CY2025
4. Targeted first production: Q4-CY2027

Elementos aims to complete its DFS for the Oropesa Tin Project by the end of the year. The company plans to initiate the re-submission of Primary License documentation, with an estimated completion timeline of approximately four months. With the Administration committed to re-assessing all license submissions on an expedited basis, Elementos anticipates approvals within approximately 15-18 months.

Managing Director Joe David expressed confidence in the project's future, stating, "The Oropesa Project is one of the world’s largest undeveloped, open-cut tin deposits with special strategic significance to the European Union." He also acknowledged the collaborative efforts between Elementos and the Administration in finding a responsible path forward that enhances the project's Environmental, Social, and Governance credentials.

David emphasized the mutual commitment to sustainable and responsible projects, as well as the shared goal of stimulating economic growth in the north-western Cordoba region, particularly the Guadiato Valley where Oropesa is located.

Key modifications to the project's layout include:

1. Relocation of main external waste dumps to southern and western edges of the open-pit to minimize impact on flora and wildlife.
2. Moving the tailings dam to the north-western corner of the tenure to reduce impact on trees and natural topography.
3. Redesigning and relocating a section of the access road to avoid overlap with a stock cattle route.
4. Repositioning process and non-process infrastructure to a cleared cropping area on the southern side of the pit.
5. Re-designing the master haulage ramp for ore and waste from the northern edge to the southern edge of the pit.
6. Partial back-filling of the open-pit to ensure stabilisation of final benches and facilitate convenient access to a proposed water reservoir at the bottom of the pit, thereby reducing end-of-mine-life rehabilitation costs.

These modifications aim to balance operational efficiency with environmental and community considerations, reflecting Elementos' commitment to responsible mining practices.
.
taking its time but not impacting on SP. A $30mill market cap.
.

.
Also.....
..started diamond drilling at the Company’s 100% owned Cleveland Tin Project, near Waratah in Tasmania. The 1,100m drill hole will test for tin, copper, tungsten and fluorite mineralisation, in addition to the previously published Ore Reserves, Mineral Resources & Exploration Target 6b.

The 1,100m hole is being drilled at a new orientation to historical surface and underground drilling. The drillhole has been designed to test the continuity and boundaries of the Tungsten Exploration Target as well as possible extensions to the company’s Tin & Copper Mineral Resources 6b, which also contains fluorite mineralisation
. The previously announced Exploration Target6b of 15-24Mt of 0.24-0.3% WO3 sits below the Reduced Level 850m, with the company’s 3.97Mt 0.3% WO3 JORC Inferred Tungsten Mineral Resource6a located above the RL850m level.

 

[Dona Ferentes]

Elementos Limited (ASX:ELT) Managing Director Joe David discusses a recent agreement to acquire up to a 50% interest in an operating Spanish tin smelter

Manny Anton: I'm Manny Anton for the Finance News Network, and today we are talking with Elementos Limited (ASX:ELT). Elementos, trading under the ASX code "ELT", has a market capitalisation of approximately $25m. Elementos is committed to the safe and environmentally conscious exploration, development and production of its high-grade tin projects. Elementos owns two world-class tin projects with large mineral resource bases and significant exploration potential in mining-friendly jurisdictions. Joining us today is Elementos Managing Director Joe David. Joe, welcome back to the network.

Joe David: G'day, Manny. Great to be back with you.

Manny Anton: So, Joe, the company has just released an announcement with the news that you have signed an agreement to acquire up to a 50 per cent interest in an operating Spanish tin smelter. Can you tell us a little bit about the agreement itself?

Joe David: Yeah, absolutely. So, at this stage it is a term sheet agreement, although we're deep into the final stages of due diligence and the binding documentation set. What it is is we purchase shares off the current shareholders for about 1.2 million euros, and then it includes a capital investment into the company of about 2 million euros. So, total value of about 3.2 for us to take a 50 per cent stake of the smelter. Critically, for us, this smelter is located 220km by road from our project. This is virtually unheard of in the tin sector, where basically all the smelter capacity for global miners like ourselves is based in Asia. So, for us to move towards a solution that we get not only a local smelter solution but one fully integrated within Spain and fully integrated within the European Union just ticks so many boxes that we've been chasing strategically.

Manny Anton: Can you tell us a little bit more from a synergies perspective? Can you tell us about the CRM synergies, the tin smelting and soldering company which owns a facility and which will be your 50 per cent partner?

Joe David: Yeah, so they are an established… They're a Spanish company, but they have international operations in Brazil, Mexico, and they sell a lot of their product into Europe and North America, so they've got offices around the world. They predominantly… They do smelt tin concentrate. They also produce a lot of tin from residue material and tin scrap material. So, very established producer. I love their responsible way they've gone about it of basically recycling a lot of their tin. And their focus is less on producing tin ingots, although they do do that and sell it to the market. They consume a lot of their own tin and move it into downstream further than we're even talking of going, into the soldering, into the soldering paste and all these bespoke products. They do produce responsible tin because tin tantalum and tungsten have had to be reported for many years due to the conflict mineral nature of a lot of the sites where it comes from. That reporting is firmly established, and CRM are already a certified group by most of the global auto manufacturers, electronics producers, all the big names. If you go through their responsible and due diligence reports, CRM is there. So, these guys are very good at what they do and have a fantastic reputation. So, for them to show the interest and the faith in us to come in as a strong partner… And obviously there's a synergy there, as you said — they're always chasing more tin. So, the fact that we will be producing tin at a combined smelter, there'll always be the option to be selling tin to them as our customer and then consuming it further downstream for themselves. That's not part of the deal we've done, but it's certainly an opportunity that we'll explore in the future.

Manny Anton: Is your intention to truck the material to the smelter?

Joe David: Yeah, it is, but it's a tin concentrate, so it is in the same form as if we were sending it through to the Asian tin smelters. We get it up to about a 62 to 64 per cent grade concentrate. That's an international seaborne grade. But instead of, as you said, trucking it to a port, sending it halfway around the world to Malaysia, Thailand or China, we'll now be doing it 220km away. So, the cost benefits to us are substantial. The carbon reduction of producing responsible tin is substantial. And the other thing that we put in our announcement is absolutely key for us and what makes it such a fantastic deal is there's actually a premium for tin above the London Metals and Shanghai published prices for tin delivered in Europe and tin delivered in North America. So, from Spain, those two markets are very accessible, and the average 12-month price of those premiums is somewhere in the order of $750 to $1,000 premium above the published price, which far exceeds what we're modelling the treatment and refining costs for this product. So, economically, another fantastic outcome for us.

Manny Anton: Can you tell us a little bit more about the smelter itself from an operating capacity perspective? And also what's the potential there, or is there any potential there, to expand the current operating capacity going forward?

Joe David: Absolutely. And part of our deal is actually to expand the facility and the quality produced and the throughput. So, historically, it was a lead smelter. There were a number of owners. It did lead shots, it did ammunition. It also, in its more recent history, you know, about 10 years ago, was doing lead acid battery recycling, all which need a big rotary furnace, which is the key to this facility. In 2021, our partners CRM took it over, and in 2022 they installed a new rotary furnace. So, the actual key asset of this is very new. It is estimated somewhere between… Depending on which products you put in, it sort of changes the overall throughput. But we're somewhere between 8,000 to 10,000 tonnes of tin being fed into that. For us, what we produce from our Spanish project would be about 5,400 tonnes of feed. So, there's already extra capacity there from what we require. So, the licences far exceed that current throughput. Our reading and working with our partners, it looks like it's closer to 20,000 tonnes. So, there's space for it, there's a licence that allows it. Basically what's yet to do is to finalise the engineering plans and obviously source more feed to put it into it. But certainly you've identified that upside and it's certainly something which has encouraged us about this deal, that this can get bigger and more tin mines can feed into it.

Manny Anton: Okay. And let's turn to the Oropesa Tin Project itself. How important is this agreement to the development of the Oropesa Tin Project, and in particular to the timeline of the project delivery?

Joe David: It is very what we believe economically, strategically, politically, very valuable. But I guess it's worth pointing out the agreement that we are doing is an option agreement, and it has up to a five-year terms for us to take that 50 per cent. So, we will maintain our flexibility throughout this process too, if it does… anything flips unknown, to be able to move the concentrate through to other smelters. And additionally we might feed this smelter from another project close by. So, for us, there's optionality in this deal, which is fantastic. These deals are very closely linked, but not directly partnered. So, we clearly think the path will be for the Oropesa concentrate to go through this smelter, but it's not an absolute requirement of the deal we've done. In terms of the Oropesa Project on its own, we announced a very clear way forward about a month ago now on our environmental permitting, but the conversations we're having with the government officials, all our approvals are on the Andalusian level. This asset sits just across the border in Extremadura, but we are having conversations on the national level. You know, the European Union is so focused on having domestic supplies of both mines and production facilities like this, and the Spanish government is very aligned with that European Union goal. So, we are having conversations on a national level to try to facilitate, you know, further linking of these two projects.

Manny Anton: Let's move to the tin market itself. So, it looks like the timing for this announcement has been pretty fortuitous. Tin prices are very strong. They're up, in fact, over 40 per cent this calendar year already, including what looks like a significant move overnight. It was up 4.5 per cent in London. Can you make some comments around the tin market itself and what you're seeing?

Joe David: Hey, we're very encouraged by what we see. You know, it's been flagged for a fairly long time that the tin market's going into deficit. Been flagged a long time that two of the three largest producers of tin are having major supply issues. The London stockpiles are dropping. The Shanghai stockpiles, which were growing the first bit of this year, have looked like they've turned and started to drop away, which I suspect is the reason for the significant movement overnight. But what's clear, there's been a 40 per cent, 40-plus now what 45 per cent, increase this year because everybody in the market is seeing what we're seeing, and that is impending deficits. And there has been so little investment into the tin sector over the last 20 or 30 years. We're only one of a handful of companies, maturing projects, to feed into that. So, yeah, the market looks pretty tight right now and certainly looks like we're moving into deficits probably faster than a lot of the commodity forecasts that previously identified, due to those, I guess, supply shocks that have happened in the last six months. So, for us, as I said, we're one of a handful of tin developers out there. We're probably maybe one of two with two projects. Our other asset is obviously in Tasmania. The price is above all our assumption, our technical assumptions. The price is currently above the previous revenue assumptions we've had in any of our scoping studies. So, for us, fantastic time to be in tin.

Manny Anton: Yeah, it looks very, very exciting, certainly, to be in that space. All right, well, to wrap it up, let me ask you, what can investors and shareholders expect to see in terms of news flow over the remainder of 2024? What should we be looking for?

Joe David: Yeah, I guess now we're talking about three defined assets. Obviously we'll be updating the market as we close out this transaction. We will be updating the market as we progress our Spanish approvals on the Oropesa Tin Project. We do have a DFS slated for the end of 2024, so we'll also be releasing that. We are looking at doing some potential exploration drilling in and around the Oropesa Project as well. The resource remains open in a number of zones. And we are currently drilling in our Tasmanian asset down the north-west of Tasmania. So, we'll be putting out some announcements in the next little while regarding the drilling there. And obviously the future plans for more exploration drilling down in Tassie.

Manny Anton: Joe, thank you for your time today. That was great. We hope to get you back soon with further updates on your exciting progress. Until then, have a good one.

Joe David: Thanks Manny, appreciate it.

Ends