Taronga – Australia
A globally significant tin development project in Australia
Taronga is First Tin’s flagship development asset and one of the most advanced undeveloped tin projects in the Western world. Located in New South Wales, Australia, the project combines scale, strong economics, supportive infrastructure and significant exploration upside in a stable mining jurisdiction.
The Definitive Feasibility Study demonstrates a project capable of generating attractive returns and cash flow while maintaining relatively modest initial capital requirements. This is even more enhanced when combined with a low-risk conceptual planned Phase 2 mine life extension. The combination of favourable project economics which have leverage to higher tin prices, straightforward mining and processing, and good infrastructure access underpins Taronga’s development potential.
Having benefited from decades of exploration and technical evaluation by leading mining companies, including BHP and Newmont, the project is now in the final stages of developmental approval. The geology is very favourable with the ore body outcropping along a ridge, requiring very low pre-stripping, and with <1:1 strip ratio and short haulage distances supporting low mining costs. The relatively simple tin mineralogy of coarse grained cassiterite within sub-vertical quartz veins allows easy liberation and beneficiation through a simple, low-tech crushing and gravity separation processing flowsheet, which will support a high margin product.
The Company has also reported a maiden mineral resource estimate for copper and silver, which provides future potential processing optionality subject to further technical and economic evaluation. Upside also exists at Taronga as the project is at the centre of a broader northern NSW tin district which has long term development potential. Indeed, First Tin has a significant 752 sq km exploration tenure, where it has identified various targets with potential for a “hub and spoke” system around Taronga’s processing plant.
A$297m
start-up capital
21%
post-tax IRR
US$17,203/t
Sn eq C1 cost
A$246m
post-tax NPV
Key findings at Spot (US$55,675/t tin)
A$580m
post-tax NPV
33.7%
post-tax IRR
Why Taronga Stands Out
Attractive Geology: The ore body outcrops along a ridge, with very low pre-stripping requirement, wide and open mineralisation, allowing low-cost open pit mining with a low <1:1 strip ratio, and extensions to the life of mine.
Simple Mineralogy: The coarse grained cassiterite allows easy liberation and beneficiation through a simple, low-cost, low-tech gravity dominated processing route.
Tier-1 Infrastructure:: Established infrastructure reduces development complexity and execution risk and enables easy access to markets.
Significantly de-risked:: Extensive freehold land ownership and water rights allocation reduces risk, provides operational flexibility and future expansion opportunities. A long history of mining underpins the social licence to operate, with an agreement in place with the local Council for the Mine Camp.
Exploration Potential: The broader Taronga district remains highly prospective, creating opportunities beyond the current mine plan.
