Bluestone Tin Ltd (BTX) – Becoming a Significant Listed Tin Producer

• Bluestone’s operations could be producing at 9,000tpa of tin in concentrate by December 2005 based on 5,400tpa of tin (Sn) from Renison in Tasmania (treating ore at 1.5%Sn, although 1.7% or more appears to be more likely) and 3,600tpa of tin in concentrates from Collingwood in Queensland. Production is capable of increasing by a further almost 6,000tpa of tin from Mt Bischoff at the end of 2006 and the approval of the Rentails project.
• Our current 7.5%NPV values BTX at A$0.73 per share. Bluestone is extremely sensitive to tin prices and the exchange rate, a US$1000/t higher price increases the NPV by 34% to A$0.98 per share, and premiums paid appear to be often >US$300/t.
• All of BTX’s properties, namely Renison, Mt Bischoff and Collingwood display characteristics inferring that higher grades (than the current JORC reserves or resources) could be achieved, with greater volumes (for longer life) and probably lower costs than we have used. Structural re-interpretations are currently underway on all 3 projects, with the high grade Mt Bischoff not mined since 1947, Collingwood apparently undersampled, and Renison previously limited by historical theories.
• A correlation has been made between Mt Bischoff and Collingwood, and although current grades are relatively low at ~1% to 1.2%Sn, 80% to 90% recoveries appear to be achievable just from gravity due to coarse cassiterite being present at both deposits, which should result in lower treatment costs and lower capex required.