ASX-listed Kasbah Resources has obtained positive results from its 2018 definitive feasibility study for the Achmmach tin project in Morocco. The company is now actively looking to produce first tin in 2020.
The DFS confirms Achmmach’s robust project economics and enhances the project’s outstanding development potential as a new, large scale tin mining operation.
Based on the positive outcomes of the Achmmach 2018 DFS, the Kasbah board and the company’s joint venture partners in the project, Toyota Tsusho and Nittetsu Mining, have requested management proceed with securing funding of the project, offtakers for the product, identify a suitable EPC engineering contractor and a capable underground mining contractor with the aim of commencing construction in 2019 and production in 2020.
The project includes a proposed underground mine with an initial 10-year life, producing 750 000 t of ore per annum at an average head grade of 0.82% tin (Sn). The associated processing plant will incorporate ore sorting and High Pressure Grinding Rolls (HPGR) technology, to produce approximately 4 500 t of tin per annum in a 60% tin concentrate.
Highlights from the 2018 DFS (on a 100% ungeared project) include:
- Post tax NPV of US$98.1 million, with a 23% IRR using a tin price of US$21 000/t and an 8% real discount rate
- Every additional $1 000 increase in tin price increases project NPV and ungeared returns by approximately $20 million and 3% respectively
- Capital cost of $96.4 million
- C11 cash cost of $9 176/t of tin, and a payback period of four years
- All In Sustaining Cost (AISC2) of $11 435/t of tin
- 7% increase in ore reserve estimate to 7 Mt at a grade of 0.82% and a 4% increase in contained tin
- Initial 10-year mine life via underground mining operation – ore body open along strike and at depth providing excellent near mine exploration potential
- Ore sorting and HPGR technology increases tin recovery, lowers environmental footprint and results in better investor returns
- Overall tin recovery of 77%, with annual tin production of approximately 4 500 t of tin in concentrate, averaging 60% tin
The 2018 DFS follows on from extensive drilling and test work completed on the project since 2008, and incorporates elements of previous studies conducted in 2014, 2015 and 2016 to deliver an outcome which confirms Achmmach as a world class development-ready tin project.
Commenting on the Achmmach 2018 DFS, Kasbah Chief Executive, Russell Clark comments:
“There is a growing need for tin in many industries and in the technology sector in particular and there are limited opportunities in the world for new global scale tin production from safe and non-conflict locations."
"Along with strong local support, the Achmmach project has the main permits required for operation and now has a DFS which supports its development, positioning the project being able to satisfy increasing global tin demand.”