In its latest quarterly report Kasbah Resources said it was evaluating options to move ahead with early production from its Achmmach project in Morocco on a smaller scale than had been considered in the latest enhanced feasibility study published in March this year.

During the quarter Kasbah re-engaged Entech, its mining consultants to evaluate the mine design to identify a higher grade, Small Start Option (SSO) that could support production at Achmmach. Kasbah has a 75% stake in the project, with minority holdings by Toyota (20%) and Nittetsu Mining (5%).

Managing Director Wayne Bramwell commented: “If successful, the SSO could provide a lower capital cost basis to commence commercial production at Achmmach and provide a platform to expand the mine and the mill to the full scale 1Mtpa option later in the project’s life.”

The enhanced definitive feasibility study released in March showed that the planned 5,850 tpy capacity operation had projected full (C3) production costs of US$13,296/tonne. However the company said in June that it was suspending negotiations for debt financing of the project pending an expected improvement in tin prices to some US$18,000/tonne.