Diversified metals company Elementos Limited (ASX: ELT) today announced the exploration estimate for its to-be-acquired Oropesa Tin Project located in Spain. The company stated that the Exploration Target at Oropesa Tin Project is estimated to range between 35.5mt and 51.0mt at a grade ranging between 0.46% tin to 0.62% tin.
The news sent the Elementos’ shares to nosedive by more than 16% on Monday, 4 February 2019. At the time of writing, ELT is trading at $0.005, down by 16.667% or $0.001 as at (2:53 PM AEST).
This Exploration Target is based on the company’s current geological understanding of the mineralization at Oropesa. The company stated that the Exploration Target had been assessed on Induced Polarization geophysical survey data, detailed geological modeling and diamond drilling data. On the category front, the company announced total Measured and Indicated Resource of 9.34mt at a grade of 0.55% tin and Inferred Mineral Resource of 3.2mt at a grade of 0.52% tin.
As per the company’s information, Oropesa project area contains many parallel IP anomalies, of which only the central IP anomaly has undergone intensive diamond drilling. The company told that detailed drilling of the central IP anomaly had provided sufficient data to build a geological model on which the current Oropesa resource is based, but also provided adequate data to be able to assess the potential of the Oropesa project to host additional tin resources.
Further, the target was reportedly restricted to a depth of 150m from the surface. A small number of drill holes were reportedly targeted at some of the additional IP anomalies during the early exploration phase but were predominantly oriented in the wrong direction to intersect the main mineralization system at Oropesa.
Last month, Elementos Limited announced the interim completion of the Arrangement Agreement for the acquisition of the Oropesa Tin Project. The company further intends to test the IP anomalies as the process of planning a detailed drilling programme is reportedly underway. The priority drill targets are stated to the immediate north of the existing resources, along strike from the current resource, and in areas that are earmarked for infrastructure for the proposed mine development, currently under application for approval with the regulatory Andalucian authorities.
However, the company clarified that the above-stated exploration target is conceptual in nature and takes no account of any unknown geological complexity, possible mining method or metallurgical recovery factors. Therefore, the exploration target was to provide the market with an assessment of the potential scale of the Oropesa Tin Project.
Elementos market capitalization stands at A$9.22 million as at 4 February 2019. Its stock price has witnessed a massive negative change of 40.00% over the past 12 months although with an upsurge of 20.00% in the last three months.
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