Kasbah Resources

Kasbah Resources is working on a
gold and a tin project in Morocco

Australian listed mineral exploration and development company, Kasbah Resources, plans to build a Moroccan focused mining company. Its assets in the country include the Achmmach tin project in the El Hajeb province, some 140 km south-east of the capital Rabat, and the Tamlalt gold project in eastern Morocco.

Tin is its prime commodity focus. The tin market is facing increasing supply pressure as existing mature mines are depleted and mining from illegal, environmentally damaging or unconventional sources becomes increasing unsustainable.

The Achmmach tin project is a new, high grade, hard rock tin project in its pre-feasibility phase. Kasbah’s strategy is to increase the size of the deposit’s JORC resource, prove the economics, de-risk the project and advance Achmmach to a development decision in 2011.

Kasbah has an exclusive right to acquire a 100% interest in the Achmmach tin project by completing a positive feasibility study. This project comprises two exploitation permits covering 32 km2. Subject to a positive outcome from the feasibility study, Kasbah intends to progress with the development of the Achmmach project.

Kasbah commenced a scoping study and drilling on Achmmach during the second half of 2007 to test the potential of near surface mineralisation and down-plunge extensions to existing zones, along with other zone extensions and repetitions identified to date within the property.

The project area mineralisation occurs in three main orientations. The most significant occurs as stacked lodes striking east-northeast, dipping steeply to the north. Six main structures have been identified and traced over several hundreds of metres of strike length.

From 1991 onwards, BRPM undertook an extensive exploration and evaluation work programme on Achmmach, which included regional and project scale geological mapping, soil geochemistry, gravity surveying, surface trenching, 33 diamond drill holes totalling 14,463 metres, a 85 metre deep exploratory shaft with 827 metres of underground drives, an underground bulk sampling program and metallurgical test work.

Kasbah Resources recently signed a letter of intent with IFC, a member of the World Bank group, for the IFC to become a major shareholder in the company. Alongside the proposed investment by IFC, Kasbah’s largest shareholder, African Lion Fund has also agreed to provide funds and together this amounts Au$3.5 million to take the Achmmach project to the next phase of development.

Kasbah also entered into an agreement with ONHYM (ONHYM was formed through the merger of the Office National de Recherches et d’Exploitations Petrolieres and BRPM) to acquire the Tamlalt gold deposit, located at the eastern end of the Moroccan High Atlas Mountains, about 300 km south of the town of Oujda.

The Tamlalt gold deposit mining property comprises eight exploration permits covering a total surface area of 128 km2. At Tamlalt ONHYM completed preliminary exploration work including 33 diamond drill holes totalling 7,019 m. The ONHYM drilling shows that the Tamlalt deposit consists of a multiple-veined quartz system developed within a chlorite-sericite altered folded porphyritic body. Gold mineralisation has been intersected to within 12 m of the surface and to a maximum depth of 360 m vertical from surface.

The Tamlalt project has the potential to provide an open pit gold resource together with an associated underground target.

www.kasbahresources.com