PERTH (miningweekly.com) – The results of an independent review of the definitive feasibility study (DFS) over the Achmmach tin project, in Morocco, will be incorporated into an updated DFS due in the fourth quarter of this year.
ASX-listed Kasbah Resources on Thursday told shareholders that a technical review by AMC Consultants into the Achmmach project had resulted in a number of recommendations to significantly enhance the project.
“This is exactly the outcome Kasbah was hoping for. AMC’s recommendations will be incorporated into the feasibility study, construction financing and the board’s decision to mine,” said Kasbah CEO Richard Hedstrom.
The review included all aspects of the previous DFS, including geology, mining and processing design, with AMC making several recommendations that could impact the capital cost estimate and financial model for the Achmmach project.
The 2016 DFS estimated that the Achmmach project would require a capital investment of $61.7-million, based on a small-start operation. The first stage of production is aimed at unearthing 1.89-million tons at a grade of 0.96%, while the second stage of production will focus on 4.67-million tons at a grade of 0.80%.
“Kasbah is now entering the final stage of predevelopment work and I’m very pleased that we have been able to identify further opportunities to enhance the Achmmach tin project,” said Hedstrom.
“This can only make the Achmmach project more attractive to potential investors and financiers,” he added.
In addition to work on the updated DFS, Kasbah will also start discussions with potential financiers in the second half of this year, with the aim of securing construction funding by the first quarter of 2018, at which point construction approval will be sought.