Potential for 40,000 tons of tin/Preparations for mining in Gottesberg continue
Heidelberg/Chemnitz. Sachsenzinn GmbH, based in Chemnitz and controlled by Deutsche Rohstoff AG, received a positive assessment from the consulting firm CSA Global (www.csaglobal.com) of the potential of the Sadisdorf tin deposit located in the Eastern Ore Mountains. After reviewing the historical data, CSA concludes that Sadisdorf has the potential to contain around 10 million tons of ore with economic grades (potentially around 40,000 tons of tin metal). The mineralization is mainly in the range up to 200 metres below surface with possible extension along strike and at depth. There are tunnels and adits from previous mining periods within the explored parts of the deposit, which are still partially accessible. In CSA’s view, the level of historical exploration should be sufficient to produce a JORC resource subject to some further verification work. CSA recommends completing the documentation of the existing samples and drill cores, some re-analysis of existing historical samples and repairing the old adit for further underground exploration work. Furthermore, CSA recommends a future drilling program with the aims of confirming the historical drilling results, increasing the drilling density of the known ore body and expanding the total resource. The preparations for the mining in Gottesberg are also progressing. A study commissioned by Sachsenzinn has identified the environmental issues associated with several possible surface locations for tin production in the area around Gottesberg. The study has determined the preferred location that minimises approval issues associated with the environment and water protection. Sachsenzinn will now use the findings of this study for the future planning at Gottesberg. Dr. Jörg Reichert, CEO of Sachsenzinn, said: „The assessment of CSA regarding Sadisdorf is very encouraging and confirms our expectations, indeed, it surpasses them. Sadisdorf has a number of advantages over other tin projects. We are also very satisfied with the assessment of possible mine surface locations in Gottesberg. Here we can continue the planning as intended. Accordingly, we will continue work aimed at producing a JORC resource report for Sadisdorf and continue exploring the deposit, before we decide on the priorities for project development.” Deutsche Rohstoff AG holds the majority of Sachsenzinn GmbH via the Australian company Tin International Ltd. Sachsenzinn focuses and develops the deposits of Gottesberg and Geyer in Saxony. In addition, the Saxon Mining Authorities awarded the license of Sadisdorf to Sachsenzinn only in 2013. In Gottesberg, independent experts have estimated an amount of tin of 114,000 tons. Sadisdorf is located about 15 kilometres away from Altenberg. As in Altenberg, tin has been exploited in Sadisdorf since the 15th century. In addition, copper and molybdenum were also extracted. The tin mine Altenberg was the largest of the historical metal mines in the Ore Mountains. Only in 1991 the production was discontinued/stopped.
Heidelberg, 3 September 2013