Elementos Limited (ASX: ELT) has commenced an eight-hole 1,000m exploration drilling campaign at its Oropesa Tin Project, Spain, targeting additional mineralisation outside the 2021 Mineral Resource Estimate1 (MRE).
The drilling will target the north-west and south-east ends of the deposit, and was designed based on results from the recent 10-hole infill drilling and the geotechnical drill programme in 2022 at Oropesa. The company is awaiting one batch of assays to finalise an update to the 2021 MRE and support Oropesa’s Definitive Feasibility Study (DFS).
Elementos Managing Director Joe David said continuation of exploration at Oropesa was an exciting time for the company amid DFS development and a surging tin price.
We are advancing rapidly towards completing the DFS and increasing the confidence of the Mineral Resource Estimate,” Mr David said.
“However, Oropesa remains prospective for additional mineralisation so it’s quite exciting to kick off this exploration drilling program which will test extensions to our current Mineral Resource.
“Additional mineralisation, if intersected, should give our shareholders extra confidence that Oropesa’s Mineral Resource is yet to be fully defined and the possibility that additional mineralisation and therefore mine life may exist outside the known mineralisation.
“Exploration is underway during a time when the tin price is surging, based on what appears to be a return to fundamental supply-demand analysis which shows a significant deficit in the tin market from 2024/2025 onwards,” he said.
South-East Exploration Targets
Five shallow diamond drill holes will target potential up-dip and therefore shallower mineralisation towards the southeast margin of the Mineral Resource.
North-West Exploration Targets
Three diamond drill holes will target potential extensions to significant tin and zinc mineralisation intersected in geotechnical drill hole SGT-042 in 2022 located northwest of the current Mineral Resource boundary.
Surging Tin Price
London Metals Exchange (LME) and Shanghai Futures Exchange (SHFE) tin prices have surged 65% and 56% respectively since November 2022. This price surge is likely attributed to:
1. Tin’s critical nature being recognized further by global economies
2. Stockpile inventories at LME and SHFE being less than one week of global demand
3. Re-opening of China (and Chinese manufacturing) following documented Covid lockdowns
4. The slowdown of global inflation and the fears it may lead to a hard landing for global economies
5. The reiteration of the likely restrictions on exports by Indonesian officials (~18-20% global tin supply)
6. Recent political instability in Peru and the shutdown of the San Rafael mine (~12% global tin supply).