Name of the Project
Achmmach tin project.

Location
Morocco.

Client
Kasbah Resources (75%), Toyota Tsusho Corporation (20%)and Nittetsu Mining (5%).

Project Description
Kasbah Resources has completed a definitive feasibility study (DFS) for a small start option at the Achmmach project, rather than a large-scale, capital intensive project, for which it completed an enhanced definitive feasibility study in 2015. The enhanced DFS contemplated the development of an one-million-tonne-a-year project, but in light of weak financing and commodity markets, the company has opted for the small start option.

The small start option DFS is premised upon a hard-rock underground tin mine with a ten-year life that is developed in two stages. Stage 1 production initially starts at 0.5-million tonnes a year for 42 months and is then expanded in Stage 2 to 0.75-million tonnes a year for 80 months (the remainder of the mine life).

The staged approach uses contract mining, contract crushing and modular plant design and, unlike the one-million-tonne-a-year scale where the full capacity was installed upfront, the small start option offers greater operational flexibility.

The 2016 DFS for this option is based on a mining ore reserve of 6.56-million tons of ore, grading 0.85% for 55 500 t of tin metal. Exploration upside and mine life extension at Achmmach is portably from repetition of deeper targets within the main 1.6 km long Meknes Trend and the parallel, 1.6-km-long Sidi Addi Trend.

Jobs To Be Created
Not stated.

Net Present Value/Internal Rate of Return
The small start option DFS estimates a net present value of $73-million and an internal rate of return of 25.4%.

Value
The project construction capital for the small start option is estimated to be $61.7-million, compared with the large-scale project’s capital estimate of $148-million.

Duration
Subject to an agreed financing package and a positive decision to mine in 2016, first tin concentrates could potentially be available to the market in early 2018.

Latest Developments
The results of an independent review of the DFS on the Achmmach tin project will be incorporated into an updated DFS due in the fourth quarter of this year.

A technical review by AMC Consultants of the Achmmach project has resulted in several recommendations to significantly enhance the project.

AMC’s recommendations will be incorporated into the feasibility study, construction financing and the board’s decision to mine.

The review includes all aspects of the previous DFS, including geology, mining and processing design, with AMC making several recommendations that could impact on the capital cost estimate and financial model for the Achmmach project.

In addition to work on the updated DFS, Kasbah will also start discussions with potential financiers in the second half of this year to secure construction funding by the first quarter of 2018, at which point construction approval will be sought.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Kasbah Resources, tel +61 8 9463 6651 or email info@kasbahresources.com.