Tasmanian Tin

The primary platform and driver for growth within Metals X’s tin business is its Tasmanian Tin Strategy which is aimed at creating shareholder value from the Company’s tin assets and infrastructure in Tasmania. These assets are held within a wholly owned subsidiary company, Bluestone Mines Tasmania Pty Ltd ("BMT").

The key assets of BMT are the cornerstone of Tasmania’s and Australia’s hard-rock tin history and are today still Australia’s most significant tin assets. They include:

1. The World Class Renison Bell Mine;
2. The Renison Tin Concentrator;
3. The Mt Bischoff Tin Project, and
4. The Renison Expansion Project, Rentails.

Metals X has signed a Heads of Agreement with the world’s largest tin producer Yunnan Tin Group (YTG) to sell to up to 60% of its Tasmanian Tin Assets and to form a Joint Venture to operate and advance the Tasmanian tin operations. Metals X believes that this major investment by YTG underpins the future potential of our tin assets and will enable us to extract significantly more value from the assets. It provides security and growth through access to smelters for future off-take and technology to improve the performance and efficiency of the operations and the future development of both Renison and the Rentails project.

Renison Underground Mine & Concentrator

Commissioning and ramp up to full production of the Renison Tin Concentrator was successfully completed during 2009. At year end the operation was generating positive cash operating surpluses and production levels were reaching expected annualised capacity with continuous quarter on quarter improvements in all areas of the operation.

Following the commencement of the Mt Bischoff Open Pit in March 2008, production has continued to exceed expectations at lower than forecast unit costs. By year end a significant stockpile had been accumulated. The pit has also undergone a revised optimisation and design, based on changes to the forecast Tin price since the start of operations.

Mt Bischoff

Mt Bischoff is a significant deposit in its own right producing in excess of 55,000t of tin metal since the late 1800’s. The total footprint of historical production significantly exceeds the current open pit operations and the project has significant upside potential for additional tin mineralisation. The company continues to explore for further open pit and possible underground targets beyond the current planned phase of mining to continue to supplement ore supply to the Renison concentrator.

Rentails

The Rentails project is aimed at the re-processing and recovery of tin from an estimated 18.2 million tonnes of tailings at an average grade of 0.42% Tin and 0.20% Copper (containing over 76,000 tonnes of tin and over 36,000 tonnes of copper metal) that remain at the site from the historic processing of tin ores from the Renison Bell mine.

The project has been through a conceptual pre-feasibility study in 2005, which identified that a combination of sulphide flotation and tin flotation separation techniques could produce a low grade concentrate which would be fumed to produce a saleable tin product.