ASX/MEDIA RELEASE
ASX: CSD Share Price: $0.025 (in trading halt)
ABN: 57 126 634 606
TI N M I N ES LI M I TED
JUNE 2017 QUARTER ACTIVITIES REPORT QUARTERLY ACTIVITIES OVERVIEWDewatering of the Mt Garnet underground mine commenced in May 2017
Refurbishment of the Mt Garnet processing plant was completed during the quarter
The cased dewatering bore at the Dry River South (DRS) project was commissioned during the quarter and was completed in July 2017
Establishment of access to the DRS portal commenced during the quarter
Refurbishment of the Surveyor camp continued and is being used to accommodate employees and contractors in the ramp up to mining
Purchase of the Mt Garnet Hotel and renovation of guest rooms to provide additional staff accommodation
Following the conclusion of the North Queensland wet season, the Company commenced dewatering of the Mt Garnet underground mine in May 2017 and this was completed in July 2017. Vehicles and mobile equipment were sourced and serviced to enable recommencement of underground mining operations.
Refurbishment of the Mt Garnet processing plant commenced and was completed during the quarter with commissioning commencing in July 2017. Electrical connection to the power grid was re‐established during the quarter.
The Company completed the purchase of the Mt Garnet Hotel during the quarter and commenced renovation of guest rooms to provide additional staff accommodation.
Construction of a cased dewatering bore hole at the DRS project commenced during the quarter and was completed in July 2017. A specialist submersible pump will be fitted at the bottom of the bore hole and will be used to dewater the DRS mine.
In conjunction, the Surveyor in‐pit dump is being reshaped to allow access to the historic DRS portal. When completed, this will be immediately followed by refurbishment of the DRS decline with production scheduled to commence later this year.
Refurbishment of the Surveyor camp is ongoing and is being used to accommodate employees and contractors.
CONSOLIDATED TIN MINES LIMITED Page 1 of 5Cairns Corporate Headquarters: 395 Lake Street, Cairns Qld 4870
Phone: +61 (7) 4032 3319
Email: info@csdtin.com.au Web: www.csdtin.com.au
EXPLORATIONAs reported in the ASX announcement dated 10 July 2017, the Company completed the second stage of drilling at the Mt Garnet Deeps project. The Mt Garnet Deeps Project is a conceptual target parallel to the Mt Garnet underground mine. Further drilling from underground may be conducted to increase confidence in the resource, initially in the upper section of this project.
Further drilling of the Gillian Zinc prospect, located 9 km south of Mt Garnet, is planned for the September quarter to follow up two holes drilled during the quarter. Poor drilling conditions prevented the target sulphide zone being reached for these holes, although reasonable grades of oxide zinc were intercepted. The drilling program is targeting conceptual zinc potential located at depth beneath the Gillian Tin Project.
Drilling at the Einasleigh project has commenced and will also continue for the remainder of the year. The first drilling program at the Chloe prospect commenced during the quarter.
A 14 room camp has been established at Einasleigh to reduce travel time for the exploration team.
CORPORATEOn 19 May 2017, Baal Gammon Copper Pty Ltd (BGC) initiated legal action in the Supreme Court of Queensland against Blair Pleash and Kathleen Vouris, (the former Administrators of the Company), the Company, Snow Peak Mining Pty Ltd (SPM) and Cyan Stone Pty Ltd (Cyan) seeking orders that the Deed of Company Arrangement be terminated and the Company and SPM be placed into liquidation (refer ASX announcement 6 July 2017).
The Company considers BGC's claim to be opportunistic and of doubtful foundation and will defend this action vigorously. Together with SPM and Cyan, the Company has appointed King & Wood Mallesons as solicitors in this action. The matter appeared in the Supreme Court of Queensland for directions on 20 June 2017 during which BGC were requested to file and serve a Statement of Claim by 4 July 2017. The Company filed and served an application for security of costs on 26 June 2017. The Company will keep shareholders informed of any developments.
The Company's auditors, KPMG, continued to progress their audit and review of the Company's 30 June 2016 annual financial report and 31 December 2016 half year financial report during the quarter.
SUBSEQUENT TO QUARTER ENDOperations
As reported in the ASX announcement dated 14 July 2017, the Company recommenced mining operations at the Mt Garnet underground mine on 5 July 2017 with first ore delivered to the run‐of‐mine (ROM) on 6 July 2017.
The commissioning of the Mt Garnet processing plant has been completed with concentrate production commencing on 24 July 2017.
The DRS cased dewatering borehole was completed in July 2017. As at the date of this report, it is being used to transfer water from the DRS underground mine to the Balcooma pit with progress on schedule. Reshaping of the Surveyor in‐pit dump is continuing and is expected to be complete by the end of August 2017.
Exploration
Drilling is continuing at the Chloe prospect. A second drill rig commenced drilling at the Jackson prospect in July 2017 and a third drill rig commenced drilling at the Kaiser Bill prospect in August.
A fourth drill rig has commenced drilling of a multi‐element (Pb, Zn, As, Cu) soil anomaly at the Nanyetta prospect, located three kilometres along strike to the north of the Mt Garnet mine.
Corporate
The Company's audited financial statements for the year ended 30 June 2016 were lodged with ASX on 18 July 2017 and the December 2016 half‐year financial statements were lodged on 17 August 2017. Quarterly reports for June, September & December 2016 and March 2017 were lodged on 18 August 2017. The Directors will keep shareholders informed of any developments relating to the reinstatement to trading on ASX through the issue of further Company announcements as soon as further information becomes available.
As reported in the ASX announcement dated 19 July 2017, the Company executed an agreement to acquire, subject to due diligence results, the mineral rights over the Muldiva base metals prospect located near Chillagoe in North Queensland. The mineral rights cover 4 exploration permits as well as a granted mining lease 295 Ha in area and are prospective for Zn, Cu, Pb and Ag.
The Company has commenced due diligence on the Muldiva prospect with a drill rig mobilised. Drilling commenced at the Muldiva prospect on 18 August 2017.
CASH RESERVES & LOAN FACILITIESThe Company had A$835,748 in cash reserves at the end of the June 2017 quarter.
As reported in the March 2017 Quarterly Activities Report dated 18 August 2017, Cyan Stone Pty Ltd (Cyan) has agreed to provide the Company with pre‐payments of the subscription funds to fund the Company's working capital requirements and exploration activities.
Whilst this is not a loan facility, should shareholders not approve the issue of shares to Cyan, the amounts prepaid will be converted into an interest bearing loan.
For further information, please contact: Cairns Corporate Headquarters
Phone: +61 (7) 4032 3319
Website: www.csdtin.com.au Email: admin@csdtin.com.au
The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.
Table 1: Schedule of Tenements as at 30 June 2017
Registered Holder | Tenement No. | Tenement Name | Interest at start of quarter | Interest at end of quarter | Status |
Consolidated Tin Mines | MDL 38 | Gillian | 100% | 100% | Granted |
MDL 381 | Windermere | 100% | 100% | Granted | |
MDL 448 | Herberton Deep Lead | 100% | 100% | Granted | |
MDL 482 | Jeannie River | 100% | 100% | Granted | |
EPM 14185 | Mt Garnet | 100% | 100% | Granted | |
EPM 15611 | Lynd River | 100% | 100% | Granted | |
EPM 17073 | Mt Garnet Extended | 100% | 100% | Granted | |
EPM 17547 | Tate River Extended | 100% | 100% | Granted | |
EPM 17623 | Mt Garnet West | 100% | 100% | Granted | |
EPM 17753 | Mt Garnet Nth West | 100% | 100% | Granted | |
EPM 17875 | Lynd River Extended | 100% | 100% | Granted | |
EPM 17917 | Smith's Creek Extended | 100% | 100% | Granted | |
EPM 18000 | Mt Garnet East | 100% | 100% | Granted | |
EPM 18118 | Bolwarra | 100% | 100% | Granted | |
EPM 18321 | Mt Garnet South | 100% | 100% | Granted | |
EPM 18795 | Gillian | 100% | 100% | Granted | |
EPM 19105 | Jimbilly North | 100% | 100% | Granted | |
EPM 19204 | Nettle Creek South | 100% | 100% | Granted | |
EPM 19323 | Kangaroo Creek | 100% | 100% | Granted | |
EPM 19468 | Jeannie River Extended | 100% | 100% | Granted | |
EPM 19603 | Dinner Creek | 100% | 100% | Granted | |
EPM 25386 | Spring Creek | 100% | 100% | Granted | |
EPM 25427 | Nettle Creek | 100% | 100% | Granted | |
EPM 25428 | Reedy Creek | 100% | 100% | Granted | |
EPM 25689 | Twelve Mile | 100% | 100% | Granted | |
EPM 25702 | Soda | 100% | 100% | Granted | |
EPM 25711 | Brownville | 100% | 100% | Granted | |
EPM 25939 | Torwood | 100% | 100% | Granted | |
EPMA 26087 | Einasleigh Extended | 0% | 0% | Application | |
EPMA 26540 | Silver Valley | 0% | 0% | Application | |
EPMA 26635 | Einasleigh Upper | 0% | 0% | Application | |
MLA 20583 | Mid Battle Creek | 0% | 0% | Application | |
MLA 20584 | Nettle Creek Extended | 0% | 0% | Application | |
MLA 20585 | Upper Battle Creek | 0% | 0% | Application | |
MLA 20693 | Pinnacles | 0% | 0% | Application | |
MLA 20694 | Windermere | 0% | 0% | Application | |
ML 20743 | Gillian | 100% | 100% | Granted | |
MLA 100022 | Maitland | 0% | 0% | Application | |
Registered Holder | Tenement No. | Tenement Name | Interest at start | Interest at end | Status |
CTM Alluvial Pty Ltd | EMPA 26453 | Lynd Regional | 0% | 0% | Application |
ML 4069 | Nettle Creek | 100% | 100% | Granted | |
ML 4073 | Nettle Creek | 100% | 100% | Granted | |
ML 4074 | Nettle Creek | 100% | 100% | Granted | |
MLA 20544 | Return Creek | 0% | 0% | Application | |
MLA 20721 | Kangaroo Creek | 0% | 0% | Application | |
MLA 20722 | Martins Terrace | 0% | 0% | Application | |
MLA 20723 | Martins Hill | 0% | 0% | Application | |
MLA 100023 | Boomerang | 0% | 0% | Application |
Consolidated Tin Mines Limited published this content on 25 August 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 25 August 2017 05:07:05 UTC.
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