Oropesa tin project in Spain Elementos Limited

Oropesa Project – Spain

Elementos Has Acquired The Oropesa Tin Project

On 31st July 2018, Elementos announced that binding Heads of Agreement had been signed with Eurotin Limited (TSX-V: TIN) (“Eurotin”) to advance the acquisition of the Oropesa Tin Project in Andalucia, Spain. More recently on the 22nd October 2018, we announced our entering of an Arrangement Agreement to acquire Oropesa Tin Project. This agreement has now been FULLY EXECUTED.

This project is one of three currently under progress for Elementos Limited. A Feasibility Study is underway and a Mining License application has been lodged. This project boasts open pit potential with an uncomplicated geology that can be dealt with using a conventional process flowsheet.

JORC Measured and Indicated Resource of 9.34mt @ 0.55% tin, and JORC Inferred Resource of 3.2mt @ 0.52 % tin (at 0.15% tin cut-off); for a total contained JORC Resource of 67,520 tonnes of tin.

Strategic Rationale for Acquiring Oropesa

Elementos Limited believes the acquisition of Oropesa represents an excellent opportunity to create value-uplift potential for shareholders as the project is advanced towards development.

Attractions of the Oropesa project, include:

• Large, well-defined resource – A globally significant, undeveloped resource with strong opportunities for resource expansion;
• Open-cut mining potential –The deposit is amendable to simple drill and blast, truck and shovel open cut mining operations;
• Simple metallurgy – extensive metallurgical testing and process flowsheet designed to produce a 62.4% tin concentrate at a 74.2% metallurgical recovery;
• Near-term production potential – A Definitive Feasibility Study has commenced which is expected to be completed in the 4th Quarter of 2018;
• Permitting process advanced – A base-line Environmental Impact Assessment was lodged with the Government in January 2018 and a Mining License application has been submitted to the Government for approval;
• Located close to development infrastructure – Located close to major highways which link to export ports, water supply and power supply. The region has a skilled mining workforce;
• Low sovereign risk – The Andalucia region of Spain is home to some of the country’s most significant mining operations and part of the European Union which provides a safe investment environment;
• Large sunk cost – significant investment in drilling, geophysics, metallurgical testing and development studies; and
• Local community support – The local government and community is extremely supportive of the project moving ahead.

Development Strategy and Capability

Our strategy at the completion of the transaction, includes:

• Completion of the Definitive Feasibility Study including studying options for enhancing the project economics including, metallurgical and mine optimisation;
• Finalisation of the permitting and environmental studies;
• Securing off-take and project financing; and
• Final engineering and design, prior to construction, commissioning and operations.

Elementos believes there is potential to identify other resources in the tenement package and expand the scale of the project in the future.

Location & Infrastructure

Oropesa consists of a 14.51 square kilometre concession package located approximately 75 kilometres north-west of Cordoba and 180 kilometres north-east of Seville, in the region of Andalucia, in southern Spain. The Oropesa district has historically been a mining district for base metals with coal mining ceasing in recent times.

Tin mineralisation was first recognised at Oropesa in 1982. Intensive exploration activity since 2010, including 261 drill holes, has resulted in the definition of the current mineral resource. The project area contains numerous geophysical and geochemically anomalous regions that could potentially extend this resource with additional exploration.

Figure 1 – Site location of project

Access to the Oropesa project area is well serviced with paved highways and gravel roads and tracks throughout the area. There is rail access approximately 16 kilometres from the project area. The district also has a number of power transmission lines of varying voltage capacities.

JORC Mineral Resources

The tin mineralisation (cassiterite with minor stannite) occurs as a replacement style orebody associated with sulphides, predominantly pyrite and pyrrhotite within a sedimentary sequence at the contact between sandstone and conglomerate units. Widespread folding of the sedimentary sequence has resulted in the mineralised sequence being overturned and repeated in places.

Figure 2 – Cross section of the Oropesa ore body looking west

The Oropesa tin project contains a JORC compliant Measured, Indicated and Inferred Resource of 67,520 tonnes of tin (see Table 1).

Figure 3 – Oropesa resource location, soil geochemistry and IP geophysical anomalies

Processing

The Project has been subject to extensive metallurgical testing including bulk sample analysis. Metallurgical testing has defined a conventional tin recovery processing circuit consisting of gravity and flotation that has achieved tin recoveries of 74.2% to a concentrate grade of 62.4% tin.

Our team will be studying opportunities to optimise the flowsheet including using ore sorters which has been successfully demonstrated at other tin projects around the world.

Permitting Status

An Exploitation Licence (Mining Licence) application was lodged with the Junta de Andalucia in October 2017. The application entails all technical aspects for the mining and processing of the Oropesa orebody as well as associated infrastructure, equipment and tailings storage facilities to operate the tin mine. The application is for an initial open-cut operation graduating to an underground operation with the potential to produce up to 3,000tpa of tin in concentrate.

The Environmental Impact Assessment was lodged with the Government in January 2018.

Cautioning Statements

Forward-looking statements
This document may contain certain forward-looking statements. Such statements are only predictions, based on certain assumptions and involve known and unknown risks, uncertainties and other factors, many of which are beyond the company’s control. Actual events or results may differ materially from the events or results expected or implied in any forward-looking statement.

The inclusion of such statements should not be regarded as a representation, warranty or prediction with respect to the accuracy of the underlying assumptions or that any forward-looking statements will be or are likely to be fulfilled. Elementos undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this document (subject to securities exchange disclosure requirements).

The information in this document does not take into account the objectives, financial situation or particular needs of any person or organisation. Nothing contained in this document constitutes investment, legal, tax or other advice.

Competent Person Statement
The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Robert Goddard, who is a full time employee of SRK Consulting (UK) Ltd. Mr Goddard has been engaged by Minas De Estano De Espana, SLU as an Independent Consultant to prepare a Mineral Resource estimate and supporting documentation for the Oropesa Tin Project. Mr Goddard is a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy and who consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Robert Goddard has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2012).

The Australian Securities Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.

Mineral Resources and Reporting

Mineral Resources, which are not Ore Reserves, do not have demonstrated economic viability. Economic, environmental, permitting, legal, title taxation, socio-political, marketing or other relevant issues may materially affect the estimate of Mineral Resources.