pre feasibility study - consolidated tin mines - pfs...•completed 80t bulk sample test through...

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2008 •CSD lists on ASX •Initial JORC Resource completed at 5.3MT •Metallurgy test work commences 2009 •Completed 2,300m drilling •Employed experienced tin metallurgist Bob Shelley to drive metallurgy test work 2010 •JORC Resource Update: 7.3MT •Completed 80t bulk sample test through Greenbushes plant 2011 •Completed 15,100m drilling •Continued flowsheet development •Cornerstone Investor, Snow Peak 2012 •Completed 9,000m drilling •Continued flowsheet development 2013 Positive PFS completed •JORC Resource Update: 13.1MT •Snow Peak acquires Mt Garnet Concentrator 2014 •Completed Feasibility Studies •First tin production Pre–Feasibility Study September 2013

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Page 1: Pre Feasibility Study - Consolidated Tin Mines - PFS...•Completed 80t bulk sample test through Greenbushes plant ... 2014 •Completed Feasibility Studies •First tin production

2008 •CSD lists on ASX

•Initial JORC Resource completed at 5.3MT

•Metallurgy test work commences

2009 •Completed 2,300m drilling

•Employed experienced tin metallurgist Bob Shelley to drive metallurgy test work

2010 •JORC Resource Update: 7.3MT

•Completed 80t bulk sample test through Greenbushes plant

2011 •Completed 15,100m drilling

•Continued flowsheet development

•Cornerstone Investor, Snow Peak

2012 •Completed 9,000m drilling

•Continued flowsheet development

2013 •Positive PFS completed •JORC Resource Update: 13.1MT

•Snow Peak acquires Mt Garnet Concentrator

2014 •Completed Feasibility Studies

•First tin production

Pre–Feasibility Study September 2013

Page 2: Pre Feasibility Study - Consolidated Tin Mines - PFS...•Completed 80t bulk sample test through Greenbushes plant ... 2014 •Completed Feasibility Studies •First tin production

Disclaimer This presentation has been prepared by Consolidated Tin Mines Ltd (CSD) based on information from its own and third party sources and is not a disclosure document. This Presentation does not purport to contain all information that a prospective investor may require in connection with any potential investment in CSD. You should not treat the contents of this Presentation, or any information provided in connection with it, as financial product advice or advice relating to legal, taxation or investment matters. Before acquiring any Securities, you should consult your own advisers and conduct your own investigation and analysis in relation to CSD.

No representation or warranty is made by CSD or its advisers, agents or employees as to the accuracy, completeness, reasonableness or attainability of any estimates, forecasts or projections set out in this Presentation or provided in connection with it and they do not accept responsibility or liability for any loss or damage suffered or incurred by you or any other person or entity however caused relating in any way to this Presentation. Any liability of CSD, its advisers, agents and employees to you or to any other person or entity arising out of this Presentation including pursuant to the Australian Securities and Investments Commission Act, 2001, Corporations Act 2001 and the Trade Practices Act 1974 or any other applicable law is, to the maximum extent permitted by law, expressly disclaimed and excluded.

Forward Statements This Presentation contains reference to certain intentions, expectations, future plans, strategy and prospects of CSD. Those intentions, expectations, future plans, strategy and prospects may or may not be achieved. They are based on certain assumptions, which may not be met or on which views may differ and may be affected by known and unknown risks. The performance and operations of CSD may be influenced by a number of factors, many of which are outside the control of CSD. No representation or warranty, express or implied, is made by CSD or any of its directors, officers, employees, advisers or agents that any intentions, expectations or plans will be achieved either totally or partially or that any particular rate of return will be achieved. Given the risks and uncertainties that may cause CSD’s actual future results, performance or achievements to be materially different from those expected, planned or intended, Recipients should not place undue reliance on these intentions, expectations, future plans, strategy and prospects. CSD does not warrant or represent that the actual results, performance or achievements will be as expected, planned or intended.

Competent Persons The information in this announcement that relates to the Mount Garnet Mineral Resource is based on information compiled by Mr Michael Andrew, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Andrew is a Principal of Optiro Pty Ltd and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity currently being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Andrew consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to Processing Engineering Capital and Operating Estimates is based on information reviewed by Mr Alisdair Finnie (B.Sc., Grad Dip. Min Sc, MAusIMM). Mr Finnie is Processing Engineering Manager of Como Engineers and has 15 years of relevant experience in these areas of work. Mr Finnie consents to the inclusion in this report of the matters based on information provided by him and in the form and context in which it appears.

The information in this announcement that relates to mine design, mine costing, and capital costs for mining is based on information reviewed by Mr Richar Guerra, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Guerra is a consultant working for Mine RP Ltd and was engaged by Prism Mining Pty Ltd to prepare the mine design, mine costing and mining costs for Consolidated Tin Mines Limited PFS report. Mr Guerra has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity currently being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Guerra consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

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Page 3: Pre Feasibility Study - Consolidated Tin Mines - PFS...•Completed 80t bulk sample test through Greenbushes plant ... 2014 •Completed Feasibility Studies •First tin production

Corporate Overview

Issued Capital

ASX Code CSD

Shares 223.3 Million

Listed Options 61.7 Million (exercisable @ $0.20 on/before 31/12/2013)

Price & Capitalisation

Share price (30/09/2013) 0.06 cents

Market Cap. $13.4 Million

Cash position (30/06/13) $ 291,698

Number of shareholders 1,097

Board of Directors

Ralph DeLacey Managing Director / Chairman

Andrew Kerr Non-Executive Director

Darryl Harris Non-Executive Director

Si He Tong Non-Executive Director

Share Register

Snow Peak 16.30 %

Ralph DeLacey 7.28%

Beacon Minerals 6.81 %

Geocrystal Ltd 4.48 %

John Sainsbury 3.20 %

Top 20 hold: 59.51 %

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Page 4: Pre Feasibility Study - Consolidated Tin Mines - PFS...•Completed 80t bulk sample test through Greenbushes plant ... 2014 •Completed Feasibility Studies •First tin production

Ralph De Lacey Chairman

Managing Director

Andrew Kerr Non Executive

Director

Darryl Harris Non Executive

Director

Si He Tong Non Executive

Director

Michael Hicks Exploration

Manager

Bob Shelley Metallurgical

Manager

Michael Proctor Manager Project

Development

Caroline O’Brien Office Manager

John Banning Executive General

Manager

A Consolidated Team

BOARD OF D IRECTORS

MANAGEMENT

4

Page 5: Pre Feasibility Study - Consolidated Tin Mines - PFS...•Completed 80t bulk sample test through Greenbushes plant ... 2014 •Completed Feasibility Studies •First tin production

Project Location

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Page 6: Pre Feasibility Study - Consolidated Tin Mines - PFS...•Completed 80t bulk sample test through Greenbushes plant ... 2014 •Completed Feasibility Studies •First tin production

JORC Resource Table

6

TIN (Sn)

Cut-off

Sn_EQ %

Measured

tonnes

Grade

Sn%

Indicated

tonnes

Grade

Sn%

Inferred

tonnes

Grade

Sn% Total tonnes

Grade

Sn%

Gillian 0.2 1,105,000 0.73 1,563,000 0.62 930,000 0.61 3,599,000 0.65

Pinnacles 0.33 - - 5,461,000 0.30 1,575,000 0.30 7,035,000 0.30

Deadmans Gully 0.18 - - 444,000 0.34 - - 444,000 0.34

Windermere 0.25 - - 829,000 0.26 1,211,000 0.27 2,040,000 0.27

TOTAL 1,105,000 0.73 8,296,000 0.36 3,716,000 0.37 13,118,000 0.39

IRON (Fe)

Cut-off

Sn_EQ %

Measured

tonnes

Grade

Fe%

Indicated

tonnes

Grade

Fe%

Inferred

tonnes

Grade

Fe% Total tonnes

Grade

Fe%

Gillian 0.2 1,105,000 32.32 1,563,000 24.50 930,000 28.53 3,599,000 27.95

Pinnacles 0.33 - - 5,461,000 19.12 1,575,000 21.04 7,035,000 19.55

Deadmans Gully 0.18 - - 444,000 26.70 - 0.00 444,000 26.70

Windermere 0.25 - - 829,000 25.79 1,211,000 23.68 2,040,000 24.54

TOTAL 1,105,000 32.32 8,296,000 21.21 3,716,000 23.78 13,118,000 22.87

FLUORINE (F)

Cut-off

Sn_EQ %

Measured

tonnes

Grade

F%

Indicated

tonnes

Grade

F%

Inferred

tonnes

Grade

F% Total tonnes

Grade

F%

Pinnacles 0.33 - - 5,461,000 6.28 1,575,000 4.14 7,035,000 5.80

TOTAL - - 5,461,000 6.28 1,575,000 4.14 7,035,000 5.80

TIN EQUIVALENT

(Sn_EQ)

Cut-off

Sn_EQ %

Measured

tonnes

Grade

Sn_EQ

%

Indicated

tonnes

Grade

Sn_EQ

%

Inferred

tonnes

Grade

Sn_EQ

% Total tonnes

Grade

Sn_EQ

%

Gillian 0.2 1,105,000 0.91 1,563,000 0.75 930,000 0.77 3,599,000 0.81

Pinnacles 0.33 - - 5,461,000 0.50 1,575,000 0.47 7,035,000 0.49

Deadmans Gully 0.18 - - 444,000 0.49 - 0.00 444,000 0.49

Windermere 0.25 - - 829,000 0.40 1,211,000 0.41 2,040,000 0.41

TOTAL 1,105,000 0.91 8,296,000 0.54 3,716,000 0.53 13,118,000 0.56

Sn equiv alent is based on the following Formula, product pricing and metallurgical recov eries;

(Sn%)+(Fe%*0.75*(150/20,000))+(F%*0.7*(400/20,000))

Sn = AU$ 20,000/tonne,

Fe = 75% recov ery @ AU$ 150/tonne

F = 70% recov ery @ AU$ 400/tonne

REC = Recov ery

Sn%+(Fe%*FeREC*Fe$/t/Sn$/t)+(F%*FREC*F$/t/Sn$/t)

Page 7: Pre Feasibility Study - Consolidated Tin Mines - PFS...•Completed 80t bulk sample test through Greenbushes plant ... 2014 •Completed Feasibility Studies •First tin production

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Prefeasibility Study Results

Positive PFS for the Mt Garnet Tin Project demonstrates the technical and

economic viability of the project utilising the existing Mt Garnet concentrator

infrastructure

• 1Mtpa open cut mine forecast to produce 2,944t per annum of tin in

concentrate

• Minimum 9 year mine life

• NPV of A$184.1M before tax (A$110.3M after tax) at 8% discount rate using

base case tin price of A$24,000/t

• Capital payback indicated at 2 years, IRR of 111%

• Highly competitive production costs of A$91.94/tonne of ore Free On Board

(FOB)¹

• Robust combined total cost of A$13,917/tonne Tin FOB (with by-product

revenue credits)

• Project capital cost to first production of A$76M

• Project average annual revenue expected to be A$127.4M

• Annual average operating cash flow (after capital costs, before tax) of

A$29.7M

¹Free On Board includes all costs loaded on ship; including operating costs, ore and concentrate haulage, port

levy and royalties

HIGHLIGHTS

Page 8: Pre Feasibility Study - Consolidated Tin Mines - PFS...•Completed 80t bulk sample test through Greenbushes plant ... 2014 •Completed Feasibility Studies •First tin production

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Prefeasibility Study Results

Reductions in the capital and operating cost base expected through further

review and optimisation of processing and mine design

Diversified project commodity base lowers financial risk profile

Continued support from cornerstone investor and largest shareholder, Snow

Peak International Investment Limited

PFS completion triggers finalisation of discussions with Snow Peak investors to

ensure that full asset value is realised for all stakeholders

PFS strongly supports progression to Definitive Feasibility Study (DFS)

Consolidated Tin remains on-track to become a significant and profitable

Australian tin producer

HIGHLIGHTS (CONT.)

Page 9: Pre Feasibility Study - Consolidated Tin Mines - PFS...•Completed 80t bulk sample test through Greenbushes plant ... 2014 •Completed Feasibility Studies •First tin production

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Key Outcomes

Annual

average

Total for 9

years

Mining inventory / average mill throughput 0.93 Mt 8.4 Mt

Project revenue A$127.4M A$1,146.6M

Estimated operating cash flow after

capital costs A$29.7M A$267.2M

Tin in concentrate production 2,944 tpa 26,495 t

Iron production (tonnes @ 65% Fe) 234,970 tpa 2,114,732 t

Fluorite production (tonnes @ 86% CaF2) 53,860 tpa 484,743 t

Total cost (after by-product credits) A$13,917/t tin produced

Page 10: Pre Feasibility Study - Consolidated Tin Mines - PFS...•Completed 80t bulk sample test through Greenbushes plant ... 2014 •Completed Feasibility Studies •First tin production

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Tin Price Sensitivity

Tin Price

A20,000/t

Base case

A$24,000/t

A$25,000/t

NPV (at 8% discount) after tax A$60.3M A$110.3M A$122.6M

IRR 52% 111% 131%

Life of Mine (LOM) Operating

Margin (FOB), ore treated A$32.92/t A$45.28/t A$48.38/t

LOM cash surplus, before tax A$275.2M A$378.5M A$404.3M

Page 11: Pre Feasibility Study - Consolidated Tin Mines - PFS...•Completed 80t bulk sample test through Greenbushes plant ... 2014 •Completed Feasibility Studies •First tin production

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CAPEX / OPEX

Capital Expenditure Breakdown A$M Cost Estimates

Mine Infrastructure 1.8

Existing plant reconfiguration 32.1

Roasting / Tin fuming 40.6

Tenure & Environmental 1.5

TOTAL 76

Operating Expenditure Breakdown A$/t ore

Mining Cost (Inc Overheads) 24.25

Processing Cost (Inc Overheads) 49.59

Cost of Sales 4.12

Ore Haulage/Concentrate Freight

Cost 13.98

FOB Total Operating Cost 91.94

Page 12: Pre Feasibility Study - Consolidated Tin Mines - PFS...•Completed 80t bulk sample test through Greenbushes plant ... 2014 •Completed Feasibility Studies •First tin production

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Sensitivities

$50M

$60M

$70M

$80M

$90M

$100M

$110M

$120M

$130M

$140M

$150M

$160M

$170M

$180M

-10% -5% 0% 5% 10%

NPV @ 8% Discount Rate Tin Price A$24,000t, exchange rate A$0.95/US$1.00 OPEX = 91.94t, CAPEX 76M

Sales Price Mining OPEX Processing OPEX Transport to Port Transport to Plant Exchange Rate

Page 13: Pre Feasibility Study - Consolidated Tin Mines - PFS...•Completed 80t bulk sample test through Greenbushes plant ... 2014 •Completed Feasibility Studies •First tin production

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Sensitivities A

$ M

illio

ns

NPV @8% NPV @10% NPV @12%

Page 14: Pre Feasibility Study - Consolidated Tin Mines - PFS...•Completed 80t bulk sample test through Greenbushes plant ... 2014 •Completed Feasibility Studies •First tin production

Simplified Flowsheet

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Page 15: Pre Feasibility Study - Consolidated Tin Mines - PFS...•Completed 80t bulk sample test through Greenbushes plant ... 2014 •Completed Feasibility Studies •First tin production

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VIEW WEST

Gillian – Proposed Mine

Page 16: Pre Feasibility Study - Consolidated Tin Mines - PFS...•Completed 80t bulk sample test through Greenbushes plant ... 2014 •Completed Feasibility Studies •First tin production

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Pinnacles Draft Pit Design

VIEW SOUTH

Page 17: Pre Feasibility Study - Consolidated Tin Mines - PFS...•Completed 80t bulk sample test through Greenbushes plant ... 2014 •Completed Feasibility Studies •First tin production

Infrastructure and ports

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Page 18: Pre Feasibility Study - Consolidated Tin Mines - PFS...•Completed 80t bulk sample test through Greenbushes plant ... 2014 •Completed Feasibility Studies •First tin production

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WAELZ KILNS

Similar Commercially Proven Process

Fuming and recapture of Zn and Pb from low grade ores or steel

plant residues under reducing atmosphere

9 kilns in operation since 1970

http://www.globalsteeldust.com/waelz_kiln_technology

Page 19: Pre Feasibility Study - Consolidated Tin Mines - PFS...•Completed 80t bulk sample test through Greenbushes plant ... 2014 •Completed Feasibility Studies •First tin production

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AUSMELT

Similar Commercially Proven Process

6 plants in operation worldwide

Fuming and recapture of Sn from

ore in a top submerged lance

furnace which also produces liquid

iron product

Kiln in operation at Yunnan Tin,

Kunming Province, China. World

largest tin producer.

Minsur/Funsur in Peru operate an

Ausmelt unit on tin

http://www.outotec.com/en/Investors/Acquisitions/Acquisition-of-Ausmelt/

Page 20: Pre Feasibility Study - Consolidated Tin Mines - PFS...•Completed 80t bulk sample test through Greenbushes plant ... 2014 •Completed Feasibility Studies •First tin production

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OPERACIONES METALÚRGICAS S. A.

Similar Commercially Proven Process

Fuming and recapture of Sn from ore in rotary furnaces

Location Bolivia

In operation since 1940

Annual production around 3,400 tonne Sn

http://www.omsabo.com/en/detfoto2.html

Page 21: Pre Feasibility Study - Consolidated Tin Mines - PFS...•Completed 80t bulk sample test through Greenbushes plant ... 2014 •Completed Feasibility Studies •First tin production

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GAS CLEANING PROCESS FOR SN FUME COLLECTION

Similar Commercially Proven Process

Standard process used worldwide

Used for gas cleaning and emission control

in the metallurgical industry for

pyrometallurgical processes – smelters, kilns,

roasters, furnaces etc

Used for treating and recovery in off gas

streams of:

• Dust particles

• Elements including Zn, Sn, Pb, As, Hg, S

and numerous others

Basic steps are:

• Gas cooling in a scrubber

• Particulate removal in a baghouse or ESP

Can handle large volumes of gas and upset

conditions

High recovery and cleaning efficiency + 99%

http://www.luhrfilter.com.au/product.php?id=15&name=dust-collectors-offline-dfk-filter

Page 22: Pre Feasibility Study - Consolidated Tin Mines - PFS...•Completed 80t bulk sample test through Greenbushes plant ... 2014 •Completed Feasibility Studies •First tin production

Tin supply outlook

Future tin supply constrained and global production declining

Producers facing lower grades and increasing operating costs

New uses adding demand pressure

Few new sustainable tin projects in development

2013 Forecast

Global tin consumption 340,000t

Global refined tin production 339,000t

• Global mine production 274,700t

Top Tin Producing Countries

• China world largest producer 160,000t

• Indonesia 55,000t

• Malaysia 31,000t

• Thailand 21,000t

• Peru (mostly San Rafael mine-closing 2017) 23,000t

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Page 23: Pre Feasibility Study - Consolidated Tin Mines - PFS...•Completed 80t bulk sample test through Greenbushes plant ... 2014 •Completed Feasibility Studies •First tin production

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Indonesia - 2nd largest Producer

JAKARTA POST 27TH SEPTEMBER 2013

JAKARTA: Indonesian refined tin shipments are expected drop by around

75 percent in September-December from the same period last year, the

country’s leading cargo surveyor said, after new trading rules slashed

output.

The rules, which aimed to establish a benchmark price in Indonesia, have

already driven the nation’s biggest tin producer, state-backed PT Timah, to

halt shipments and declare force majeure.

Analysts and traders are unsure how long it will take tin buyers and the

country’s 47 registered tin exporters to adjust, with the move helping push

up international tin prices by 9 percent this month.

From September until year-end, Southeast Asia’s largest economy will likely

ship only 10,000 tons of tin, said Sufrin Hannan, director of the minerals and

coal division at PT Sucofindo, a state-owned company. That compares

with around 38,000 tons in the same period in 2012.

“We estimate tin exports from September to December [...] will be around

10,000 tons,” said Sufrin. — Reuters

Page 24: Pre Feasibility Study - Consolidated Tin Mines - PFS...•Completed 80t bulk sample test through Greenbushes plant ... 2014 •Completed Feasibility Studies •First tin production

LME Tin Price

24

T W E LV E M O N T H T I N P R I C E R A N G E (U S D )

Sep

12

Oct

12

No

v 1

2

Dec

12

Jan

13

Feb

13

Mar

13

Ap

r 1

3

May

13

Jun

13

Jul 1

3

Au

g 1

3

Sep

13

Pricing based on LME Cash Price on 26/09/13 - US$22,975 Exchange rate on 26/09/13 USD/AUD - 0.936

A$24,546/t 26/09/13

Page 25: Pre Feasibility Study - Consolidated Tin Mines - PFS...•Completed 80t bulk sample test through Greenbushes plant ... 2014 •Completed Feasibility Studies •First tin production

Tin Price

25

C R Y ST AL B A LL G A Z ING

$20

$21

$22

$23

$24

$25

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

20

21

Fore

cast

Pri

ce U

SD

Tho

usa

nd

s

World Bank Commodity Forecast July 2013

EIU Economic and Commodity Forecast May 2013

Reuters Analyst Survey 29 July 2013

CRU Projection 24 June 2013

Linear (Trend)

Page 26: Pre Feasibility Study - Consolidated Tin Mines - PFS...•Completed 80t bulk sample test through Greenbushes plant ... 2014 •Completed Feasibility Studies •First tin production

What’s next?

Final drilling on Gillian deposit consisting of approximately 6,000m RC and 1,500m HQ Diamond, scheduled to start 14th October

Pilot scale reverse silica flotation planned with completion expected by end of 2013

Pilot scale reduction roasting trials expected to commence at Ansac factory at Bunbury WA early January 2014

Optimisation of CAPEX and OPEX inputs to improve project economics

Definitive Feasibility Study (DFS) for the Mt Garnet Tin Project commencing with Gillian, with further evaluation work to follow at Pinnacles and later at Windermere

Finalise a binding agreement with Snow Peak to ensure that the value of respective assets are maximised with the aim of achieving tin production by end 2014

Finalise CAPEX funding arrangements

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Page 27: Pre Feasibility Study - Consolidated Tin Mines - PFS...•Completed 80t bulk sample test through Greenbushes plant ... 2014 •Completed Feasibility Studies •First tin production

Ralph De Lacey

Managing Director

Consolidated Tin Mines Limited

Ph: (07) 4032 3319

Fax: (07) 4027 9429

Mob: +61 428 163 176

E: [email protected]

F OLLOW OU R D E V ELOP MEN T A T

W W W . C S DT IN .COM .AU

Contact Details

Darryl Harris

Non-Executive Director

Consolidated Tin Mines Limited

Ph: (07) 4032 3319

Fax: (07) 4027 9429

Mob: +61 419 908 645

E: [email protected]

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