Stratos sets exploration target for Sambas project at 58,500-87,750 tons of tin
Tuesday, September 24 2013 - 04:24 AM WIB
ASX-listed Stratos Resources Ltd has set an exploration target of 58,500-87,750 tons of tin for the Sambas offshore tin project in West Kalimantan, following a review of available sample and seismic data.
The company said in an update statement obtained Monday that Sambas has an exploration target of 75,000 tons to 112,500 tons of cassiterite (SnO2) at a target grade of 0.25kg/m3 (@78% Sn), which equates to58,500 tons to 87,750 tons of contained tin metal
The statement said that previous sampling work includes 45 grab samples taken in and around Sambas. The 26 samples taken in the exploration target area had an average grade of 0.54 kg/m3 SnO2. Economic alluvial and offshore dredging operations in Indonesia typically grade between 0.2 kg/m3 and 0.4 kg/ m3 SnO2.
Stratos? alluvial mining consultants anticipate that an offshore dredging and gravity processing operation with an assumed grade in line with the Sambas target grade of 0.25kg/m3 could have a cash processing cost of approximately US$11,500 per ton of tin. This compares to the current tin price of US$23,340 per ton (20 September 2013).
Stratos is currently under a 3 month option (expiring late October 2013) to acquire 70 percent of the Sambas project with the right to extend the option for an additional 3 months for a minimal payment. Local capability has been established for the due diligence process (including experienced legal arid alluvial mining consultants) and the local partner has extensive experience in West Kalimantan mining projects, the company explained.
The tin market and tin price has strong fundamentals in the near and medium term, the company said. Analysts expect continued demand for solder by the consumer electronics industry (the key industrial usage for tin) and constrained supply (including the forecast end of life of the San Rafael mine in Peru in 2016/17 which currently accounts for 10 percent of global tin production and limited new mines in development) will provide strong support for the tin price. Key tin commentators, including the recognized tin market authority, the International Tin Research Institute (ITRI) has forecast the potential for the tin price to increase from recent levels of US$20,000-23,000/ ton to US$30,000 - 35,000/ ton in the period to 2016.
Stratos said it has mobilized a team to site this week to undertake additional sampling and assaying work. The initial focus is on twinning previous samples and undertaking further work in and around some of the higher grade samples. Based on the results of this work a decision will be made on whether or not to acquire the Sambas project.
The Sambas project is a 49,270 Ha offshore exploration lease (Indonesian exploration IUP) in the northern Sambas province of West Kalimantan.
Editing by Reiner Simanjuntak