australia's identified mineral resources 2005 - Geoscience Australia

AUSTRALIA’S IDENTIFIED MINERAL RESOURCES 2005
Exploration
Exploration for alluvial tin in New South Wales and Tasmania increased during the year in response
to increased prices. Marlborough Resources continued exploration over deep lead alluvial deposits
at the Tingha prospect (8 km south of Inverell, NSW), Emmaville prospect (50 km north east of
Inverell), and the Kiawarra prospect (35 km northeast of Yass, NSW).
Malachite Resources completed an exploration drilling program at the Sheep Station Hill prospect
(20 km east of Inverell) and the Newstead prospect (4 km southeast of Sheep Station Hill). Drilling at
Sheep Station Hill intersected mineralisation averaging 0.2% Sn within a series of greisen veins hosted
by granite. Exploration commenced at the Mt Ramsay prospect, western Tasmania, where Malachite
Resources is testing airborne electromagnetic anomalies within the Crimson Creek Formation, which
hosts the Renison Bell mine (23 km south of Mt Ramsay).
Production
Australia’s mine production in 2004 was 800 t tin in concentrates (79% less than in 2003) and 467 t of
refined tin ingots (22% less than 2003). Total tin exports for 2004 were 218 t valued at $1.05 million.
Mine production of tin in Australia has been declining with the closure of mines in Queensland,
New South Wales and Tasmania since the mid-1980s. At the start of 2003, Australia had three
operating tin mines – Renison Bell underground mine (Tas), Ardlethan alluvial mine (NSW) and
Greenbushes open cut mine (WA). Production at Renison Bell was suspended in May 2003. Prior to
this, the mine had been a major producer for almost 40 years and was one of the world’s largest
underground tin mining operations. During 2004, only two small mines were in production at
Ardlethan and Greenbushes. Ardletan alluvial operations closed in August 2004, and at year’s end
the only tin production was from Greenbushes. While there has been a strong resurgence in tin
prices (on the London Metal Exchange) during 2003 and 2004, Australia’s production has declined
as mines close and resources remain at low levels.
World Ranking
Australia’s EDR for tin ranks at ten in the world. The world’s major resources of EDR are in China,
Malaysia, Indonesia, Peru and Bolivia.
Industry Developments
Following more than a decade of low prices, world tin markets showed signs of recovery in 2003 in
response to reductions in tin stocks and decreases in mine production. Prices rose to US$5300/tonne
at the end of 2003 ahead of an increase to more than US$9 000/tonne by December 2004. In response,
several companies initiated proposals to re-open old mines or restart development of projects
previously suspended because of low prices.
Bluestone Tin Ltd continued work on four tin projects, which are at various stages of development.
These projects are:
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Renison Bell (15 km northeast of Zeehan, Tasmania): Bluestone purchased the mine and
concentrating plant in March 2004 and progressively refurbished both. Mining and processing
re-commenced in February 2005 and by late March the concentrator had processed 62 605 t ore
to produce concentrates with 164.9 t contained tin.
Exploration drilling was carried out from underground to test for extensions of the Deep Federal
mineralised fault structure. High grade mineralisation was intersected to the north of the area of
known resources and this resulted in a significant increase in resources.
Rentails Project: Bluestone investigated the feasibility of extracting tin from old mine tailings,
which accumulated during the past 40 years of mining at Renison Bell. Fuming or roasting/smelting
techniques are being investigated to recover the tin. Drilling and bulk sampling of the tailings dam
were completed and identified mineral resources were estimated to be 17.9 Mt averaging 0.42% Sn.