Ann: Activities and Cash Flow Report ended 30 Sep, page-6

re: Ann: Activities and Cash Flow Report ende... FGB I have been thinking about this myself. We need not even produce elemental tin from this operation. Tin ore (cassiterite) has plenty of uses in its own right, and requires far less processing. In fact, I believe you can produce a cassiterite concentrate from a simple physical processing circuit, incorporating crushing, grinding and gravity separation. Now this circuit could be mobilised in my opinion, and verifies Nick's claims of building a 'mobile miner'.

Of course if we did want to produce elemental tin, which is the stuff that currently fetches $10/lb, we would need a chemical processing unit, in the form of a smelter. CAP is likely to be financially out of depth here unless they brought in a JV partner, but I'm sure they would like to go at this one themselves, which is why I believe they might be contempt to produce a cheaper product such as cassiterite concentrate.

This concentrate, depending on its purity, can be anywhere up to 78% tin, but is likely to be around half that figure because of gangue material in the process feed. Nevertheless a 40% tin concentrate would be quite tantilising for the right buyer who could then produce it into elemental tin if they so please, or refine it into a pure cassiterite concentrate.

What they have to be careful of here is modelling the capital costs, and ensuring that production can pay this off, let alone make a profit. Let's not forget that we don't have an awful lot of mineralisation down there. Tin as high as 1.6% over 1m has been found at Euriowie, and tungsten oxide as high as 2.47% over 4m has been found at Yanco Glen. The grades, while good, aren't that extensive. I'm sure this is at the forefront of their minds at the moment. This is therefore not a shoe in to be a success, but they are making a right old go at it, which is all we can ask!