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Aus Tin to conduct strategic review at Granville, delay Taronga development

Aus Tin Mining Ltd. will undertake a strategic review of its Granville East tin project in Tasmania, Australia, while repairs are conducted on its truck and mine excavator.

The review will look to determine the most economically efficient method of extracting value from the project, and is expected to take a few weeks to complete.

The company said Sept. 20 that operations are expected to be reduced or even suspended during repairs.

The mine truck at the project was recently transported to Launceston for repairs to fix transmission problems. This follows a recent failure of the 50‐tonne mine excavator, which could take up to six weeks to repair.

Aus Tin will reduce costs during the repair period and has requested the staff to take annual leave, it noted.

"The failure of key mining equipment at a time production at the plant was improving is clearly unfortunate, but the resulting window provides an opportunity to critically review the project," CEO Peter Williams said.

In late March, the company entered a nonbinding deal to supply up to 120,000 tonnes of non‐acid forming waste rock from the Granville project to Lucas Total Contract Solutions.

The company switched to owner mining at the Granville East mine in March, as opposed to appointing another contractor, to achieve greater control and improve productivity.

Additionally, Aus Tin has decided to delay further work on the stage one development at the Taronga tin project in New South Wales, as it was planned to be funded from Granville's cashflow.

Meanwhile, the state's bulk water supplier has reportedly predicted that Border Rivers, the rivers system in which Taronga is located, will run dry by 2020 without government intervention and rain.

The company said it has been planning interim programs, which will be less reliant on water, to advance Taronga towards a definitive feasibility study.

Aus Tin intends to conduct reverse circulation drilling to evaluate the potential upside in the resource grade, and diamond drilling to prepare for metallurgical test work to evaluate the potential upside of higher tin recovery and recovery of by‐product credits.

Furthermore, the company received a letter of funding support from its largest shareholder, DGR Global, for up to A$1.0 million for a term of up to 12 months.