Kasbah Resources has published summary details of a pre-feasibility study (PFS) of its Achmmach tin mine project in Morocco and promises a definitive feasibility study (DFS) by the fourth quarter of 2013. The new study shows capital costs of US$167 million, almost double the estimate made for a 2010 scoping study, although this partly reflects an increase in the planned size of the operation from 800,000 tpy of ore to 1 Mtpy.
In a statement Kasbah noted that: “the 2012 PFS demonstrates the technical and financial robustness of a larger 1 Mtpy mechanised underground mine and concentrator producing 6,880 tonnes of tin in concentrate per annum, at competitive mine gate costs, for export to an Asian tin smelter.”
Kasbah Resources’ Chairman Mike Spratt said: “The completion of the PFS marks another significant milestone for Kasbah. The study indicates that Achmmach can produce tin at a very competitive mine gate cost of $65.76/tonne of ore. These positive economics and the opportunities to optimise the PFS design and costs provide significant encouragement for the company to advance Achmmach to the next stage of evaluation. As such the Kasbah Board has approved the initiation of the DFS for Achmmach.”
Initial mine life is estimated at 6.6 years, although “recent drilling results confirm the opportunity to extend the mine life and reduce mining costs through optimisation of the mine design. Capital cost reductions are also anticipated from an optimised surface infrastructure layout.” The project shows an internal rate of return of 16.7% at the 29 May 2012 LME price of $20,095/tonne, rising to 32.4% at the average 2013 price of $24,407/tonne forecast by analysts surveyed by Consensus Economics in April.
