TIDM1SN
RNS Number : 6571S
First Tin PLC
13 March 2023
13 March 2023
First Tin Plc
("First Tin" or "the Company")
Tellerhäuser Drilling and DFS Update
First Tin Plc ("First Tin"), a tin development company with
advanced, low capex projects in Germany and Australia, is pleased
to provide an update on its drilling programme and Definitive
Feasibility Study ("DFS") currently being undertaken at its
Tellerhäuser Tin Project in Germany. Additionally, the Company
announces that a considerable amount of additional historic
drilling data has recently been located which could potentially add
resources at a significant cost saving to drilling its own holes.
The project is owned by First Tin's 100% owned German subsidiary,
Saxore Bergbau GmbH ("Saxore").
Drill Results
First Tin has received positive results from the second two deep
drillholes undertaken as part of the drill programme into the deep
Dreiberg mineralisation. This programme is designed to add
Indicated Resources to its Tellerhäuser Project in Germany by
confirming the continuity of mineralisation previously identified
by Wismut during 1970s and early 1980s. Wismut previously
intersected high grade tin mineralisation at depth, along strike
from the known Indicated Resources at the Dreiberg seam (Figure
1).
The two areas tested are at depths of between 800m and 900m
below surface and between 3,000m and 4,000m along strike from the
Hämmerlein Indicated Resource area and 1,000m to 1,500m along
strike from the Dreiberg Indicated Resource area. Both drillholes
intersected the targeted skarn horizon and returned the following
significant downhole intercepts:
-- Drillhole SAXDRE24:
o 5.90m skarn from 810.3m downhole grading 0.40% Sn, 0.74% Zn,
43.0ppm In, 5.9g/t Ag
-- Including (0.5% Sn lower cut-off): 1.35m @ 1.26% Sn, 2.16%
Zn, 130.3ppm In, 20.0g/t Ag from 811.6m downhole
-- Drillhole SAXDRE31:
o 2.90m skarn from 877.2m downhole grading 0.71% Sn, 0.48% Zn,
56.4ppm In, 6.5g/t Ag
-- Including (0.5% Sn lower cut-off): 0.95m @ 2.02% Sn, 1.39%
Zn, 163.0ppm In, 18.7g/t Ag from 877.7m downhole
As reported in December 2022, First Tin's previous two holes
also intersected the targeted skarn zone. Together, they have
successfully shown the skarn horizon is present, continuous, and
tin mineralised as suggested by the previous Wismut drilling. This
suggests that the skarn horizon is continuous for at least 1.5km
southeast of the Indicated Resources at Dreiberg and is open to the
southeast.
Importantly, the tin assays were as expected from the location
of the intercepts. The other metals, in particular zinc, indium and
silver were all as good as, or better than, expected.
Drillhole From To Interval Sn Zn In Ag Notes
Number (m) (m) (m) (%) (%) (ppm) (g/t)
SAXDRE25 794.65 795.30 0.65 0.34 0.74 34.9 11.3 Upper Skarn
------- ------- --------- ----- ----- ------- ------- ----------------
and 805.70 807.20 1.50 0.75 1.00 33.2 5.6 Lower Skarn
------- ------- --------- ----- ----- ------- ------- ----------------
incl. 806.00 806.60 0.60 1.43 1.99 61.5 10.9 0.5% Sn cut-off
------- ------- --------- ----- ----- ------- ------- ----------------
SAXDRE24 810.30 816.20 5.90 0.40 0.74 43.0 5.9 Skarn
------- ------- --------- ----- ----- ------- ------- ----------------
incl. 811.60 813.00 1.40 1.26 2.16 130.3 20.0 0.5% Sn cut-off
------- ------- --------- ----- ----- ------- ------- ----------------
SAXDRE34 886.60 890.45 3.85 0.63 1.29 58.4 4.5 Skarn/schist
------- ------- --------- ----- ----- ------- ------- ----------------
incl. 887.75 889.10 1.35 1.49 0.78 122.1 7.1 0.5% Sn cut-off
------- ------- --------- ----- ----- ------- ------- ----------------
SAXDRE31 877.2 880.1 2.90 0.71 0.48 56.4 6.5 Skarn/marble
------- ------- --------- ----- ----- ------- ------- ----------------
incl. 877.65 878.60 0.95 2.02 1.39 163.0 18.7 0.5% Sn cut-off
------- ------- --------- ----- ----- ------- ------- ----------------
The "20" series holes are located approximately 500m southeast
of, and roughly along strike from, the Indicated Resources at
Dreiberg (Figure 1). They targeted mineralisation identified by
three previous drillholes completed by the SDAG Wismut joint
venture (between the Russian and East German governments) in the
early 1980s. These returned intercepts of:
-- 7.4m @ 1.72% Sn
-- 3.2m @ 2.01% Sn and 2.0m @ 1.21% Sn
-- 1.9m @ 1.57% Sn
Both drillholes intersected the skarn horizon and returned
intercepts of:
-- 5.9m @ 0.40% Sn (incl. 1.4m @ 1.26% Sn)
-- 0.65m @ 0.34% Sn and 1.5m @ 0.75% Sn (incl. 0.6m @ 1.43% Sn)
These holes have successfully confirmed both the location and
thickness of the skarn and the tenor of tin and associated metals
mineralisation.
The "30" series holes are located approximately 1,500m southeast
of the Indicated Resources at Dreiberg and approximately 850m south
of the "20" series holes. They were designed to target
mineralisation outlined by two previous Wismut drillholes that had
returned intercepts of:
-- 7.2m @ 2.15% Sn
-- 3.8m @ 0.58% Sn (incl. 1.6m @ 1.00% Sn)
Due to difficulties encountered during drilling, both of the
planned drillholes hit the skarn horizon off-target (65m to 70m
away from target locations, see Figure 1) and hence did not
accurately test the historical high grade intercepts. However, the
drillholes still intersected the targeted skarn horizon and
returned significant tin intercepts including:
-- 2.90m @ 0.71% Sn (incl. 0.95m @ 2.02% Sn)
-- 3.85m @ 0.63% Sn (incl. 1.35m @ 1.49% Sn)
Figure 1: Dreiberg Deep Drilling Summary Plan
DFS Update
Due to the slow operational performance of the Company's
original drilling contractor, and their inability to intersect the
target zones in a controlled manner at predefined positions, the
current contract has been terminated.
First Tin is in the process of identifying a new contractor to
take over the Dreiberg drill programme, with the current intention
that the new contractor will drill the holes using RC to depths of
between 300m and 500m and then to convert to diamond drilling to
test the target horizon. The next Dreiberg hole (the fifth drilled
by First Tin) is scheduled to commence in Q2 2023 and, should this
prove successful, the programme may be expanded to define
additional Indicated Resources in the Dreiberg area.
This drilling delay has put the proposed drilling programme
behind schedule by around six months, which has in turn put the
revised resource estimate back by around the same time. As such, it
is now not anticipated that the DFS at First Tin's Tellerhäuser
asset will be completed by the end of 2023 as previously expected.
Depending on how the new contractor performs, the DFS is now
targeted to be completed in 2024.
However, the Board is pleased to highlight that the drilling to
date has obtained enough drill core to undertake mineral processing
test work from Dreiberg with half of the core from the drillholes
being sent to ALS in Burnie, Australia. This will be the first
mineral processing testwork conducted on Dreiberg mineralisation in
over 40 years and will be useful as variability testwork for the
project as a whole.
Additional Historic Drilling Data
A further positive outcome is that a considerable amount of
additional historic drilling data has recently been located for the
Tellerhäuser project area. This new data came from previously
unseen old Wismut uranium exploration drillholes as well as some
assay data that had not previously been able to be located from
three different archives in Freiberg. Following granting of the
Mining Licence in 2021, Saxore was able to request additional data,
in particular drillholes targeting uranium mineralisation, that
were also assayed for tin and other metals.
All of this data is currently being added to the main database
and should result in a more robust resource model and may lead to
additional resource tonnes being added very cost effectively. The
additional identified data represents an equivalent of around
3,500m of core drilling from surface, 4,500m of core drilling from
underground and a number of other channel samples. Based on the new
data from the Tellerhäuser drilling programme, plus the additional
historical data recently received, the Company expects to publish
an updated JORC compliant Resource Statement for Tellerhäuser in
June/July 2023.
While waiting for additional drilling results to be returned and
while the new historical drilling data is being analysed, the DFS
will continue to progress and will focus on the areas of mineral
processing as well as investigating optimal mining methods, mine
access and environmental studies. All these activities are well
financed until end of 2023. A potential adjusted and extended
drilling programme for Tellerhäuser based on the results of the
updated Resource Statement may require further funding beyond the
existing budget.
First Tin CEO Thomas Buenger said, "It is highly encouraging
that the results from these four drillholes confirm continuity of
higher grade mineralisation previously identified by Wismut over 40
years ago.
The holes all intersected significant skarn mineralisation and
suggest the skarn is continuous and mineralisation is
consistent.
"It is unfortunate that the drilling contractor was unable to
achieve the desired accuracy, however we are hopeful that this can
be achieved by the new contractor and look forward to reporting
additional results as they become available.
"The identification of significant additional data not
previously available to us is an excellent outcome and could
potentially add resources at a significant cost saving to drilling
our own holes. These new developments, however, mean that we are
now behind the previous schedule for our DFS and it is considered
unlikely that we will be able to complete the study in 2023 as we
previously expected. We are still progressing those parts of the
study that are not dependent on the new drill data being added to
the database, so that we can finalise the DFS as soon as we can -
most probably now in 2024 rather than in 2023. However, with the
forthcoming tin deficit expected to be of a long term nature, our
project is still well aligned to provide critical supply to meet
demand."
Enquiries:
First Tin Via SEC Newgate
below
Thomas Buenger - Chief Executive
Officer
Arlington Group Asset Management
Limited (Financial Advisor and Joint
Broker)
Simon Catt 020 7389 5016
WH Ireland Limited (Joint Broker)
Harry Ansell 020 7220 1670
SEC Newgate (Financial Communications)
Elisabeth Cowell / Axaule Shukanayeva
/
Molly Gretton 07900 248 213
Notes to Editors
First Tin is an ethical, reliable, and sustainable tin
production company led by a team of renowned tin specialists. The
Company is focused on becoming a tin supplier in conflict-free, low
political risk jurisdictions through the rapid development of high
value, low capex tin assets in Germany and Australia.
Tin is a critical metal, vital in any plan to decarbonise and
electrify the world, yet Europe has very little supply. Rising
demand, together with shortages, is expected to lead tin to
experience sustained deficit markets for the foreseeable future.
Its assets have been de-risked significantly, with extensive work
undertaken to date.
First Tin's goal is to use best-in-class environmental standards
to bring two tin mines into production in three years, providing
provenance of supply to support the current global clean energy and
technological revolutions.
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END
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