Kangaroo Metals Ltd (ASX: KML), has completed due diligence and will progress to acquire a 100% stake in a series of tin projects in north east Tasmania including the Riverside alluvial mine. The other projects are South Mount Cameron, Main Creek and Moorina.
Kangaroo Metals' managing director Brett Teale said due diligence focused on 18 hectares of the 64 ha of mining leases that are immediately available for mining.
Bulk sampling results across the 18 ha tested showed an average grade of 449 grams/m3 and in the JORC compliant resources the indicated resource was 240 tonnes of SnO2 over 10.6 ha.
Additional test mining confirmed the average grade through processing an additional 1,000 m3 panel, with over 2t of saleable concentrate already extracted in the due diligence process.
Operations at Riverside continue with a full mine plan and efficiencies being introduced to increase production rates.
Kangaroo's ground in Tasmania is historically rich in tin, and further work -- to bring the existing exploration data to JORC compliance -- should see us with operations placed in the north east for a significant time to come, said Teale.
Significant investment in the region by Van Dieman Mining, which is reopening the Endurance and Scotia mines to the direct north of our ground, and Macquarie Harbour which is advancing land immediately east of our ground, shows the prospectivity and confidence in the region. (Van Dieman Chairman, Mike Etheredge, told Mineweb in London last week that the company is moving ahead with the Scotia mine after switching its mining method from dry mining to wet mining which should substantially improve project economics. Start-up is anticipated in a couple of months with full production by the year-end.)
Kangaroo's north Queensland properties are in the Herberton tin field, and Croydon, Kidston and Mungana areas which are gold and copper mining regions.