ASX-listed tin exploration and development company, Kasbah Resources, has published details of a new Definitive Feasibility Study (DFS) and Ore Reserve increase for its 75%-owned Achmmach tin project in Morocco
The new DFS envisages a 10-year underground tin operation extracting and processing 750,000 tonnes of tin ore annually. With average head grades of 0.82% Sn and improved tin recoveries of 77% the company expects to produce some 4,500 tonnes of tin annually in a 60% Sn tin concentrate. The DFS also includes an upgrade to the Ore Reserve, with a 7% increase in ore tonnage and 4% increase in total contained tin. JORC-compliant probable and proved reserves now total 7 million tonnes of ore at 0.82% Sn, or 58,000 tonnes of contained tin.
Project capital costs have been calculated at US$96.4 million, with sustaining and replacement capital costs of US$69.2 million over the life of the mine. Operational cost estimates include C1 cash costs of $9,176/t and C3 costs of $13,695/t. Kasbah and its Joint Venture partners are now looking to secure funding for the Project, suitable engineering and mining contractors and offtakers for the tin product, with the aim of commencing construction in 2019 and production in 2020.
Kasbah CEO, Russell Clark commented: “Our ability to successfully utilise ore sorting and High Pressure Grinding Roll technology in a new processing flow sheet has delivered a significant positive impact on Project capital and operating costs as well as tin recovery. Along with strong local support, the Achmmach Project has the main permits required for operation and now has a DFS which supports its development”
Our view: The updated DFS supersedes the previous “Small Start Option” DFS announced in July 2016. The project is now planned to begin at a significantly larger scale and will reduce the mining risk associated with the SSO strategy of defining higher-grade areas and targeting these in an early phase of operation. The implementation of ore sorting technology has also led to strong improvements to the project economics. Kasbah has a 75% stake in the project, with minority holdings by Toyota (20%) and Nittetsu Mining (5%).
Achmmach project site