The 2015 DFS envisaged a 1Mtpa operation but the SSO has been designed to operate on reduced scale. The first stage of the mine plan proposed in the new PFS would include mining and processing 0.5 Mtpa of ore, containing roughly 1.05% Sn, to produce 4,700 tpa of tin-in concentrate over the first 4.5 years. The second stage would see expansion of infrastructure to facilitate 0.75 Mtpa of ore at a lower grade of 0.8% Sn, for 5,200 tpa of tin-in-concentrate over an additional 5 to 7 years.
However, the SSO has also resulted in numerous projected cost savings compared to the 2015 DFS. Capital expenditure has been reduced 62% to US$ 56 million and all-in C3 costs have fallen 4.9% to US$ 12,500/t of tin-in-concentrate, despite a 3.7% in C1 cash costs to US$ 8,625.
Kasbah managing director, Wayne Bramwell said: “With the SSO Kasbah has tailored a no-frills, fit for purpose design approach clearly focussed at addressing capital expenditure. Importantly, the SSO encapsulated a lower risk mining, construction and operating scenario that could see Achmmach established during a time of lower tin prices.
The company now plans to undertake a DFS for the SSO, which will include development of a new ore reserve.