Canada-listed Alphamin Resources Ltd. (TSX-V: AFM) has published the full, NI 43-101compliant, Definitive Feasibility Study (DFS) for its Bisie tin project, in North Kivu, DR Congo. The study, led by MDM Engineering, concludes that the project is economically viable, technically credible and environmentally sound at current tin prices.
The report estimates cash costs for each tonne of contained tin produced totalling $8,448, including $2,671 for mining, $1,755 for processing, $1,550 for administration, $863 for transport, $1,458 for marketing and treatment and $947 for royalties.
The proposed underground mine operation would process 360 ktpa over a 9.5 year mine life and with good profitability modelled at a tin price of $14,800, with an NPV of $84.7 million based on a 15% discount rate. 800 local jobs would be created during the mines construction phase and 450 permanent jobs would be created during the operational phase.
The DFS study highlights the top 3 risks for the project: Logistics, due to the remote location of the project and the transportation of the final concentrate by road; Security, due to the risk posed by local artisanal miners and rebel groups; and ground conditions, as the deposits softer ore may impact on mine development. However, it concludes that Alphamin have made plans to adequately mitigate these risks. The report recommends that Alphamin seek full financing for the project and progress with detailed design and construction of the mine, which is planned for 2017, with first production by the end of 2018.
ITRI View: The full report provides additional detail to the Alphamin’s press release at the end of February, which announced Probable Mineral Reserves for the Bisie project totalling 3.04 Mt at 3.76% Sn, or 114,366 tonnes of tin, using a 1.8% cut-off grade. While the DFS report highlights the risk of operating in a remote part of the DRC, it also confirms that that the project is high grade, with low operating costs and profitable at today’s prices,
