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.

Potential Job Creation
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
Kasbah is assessing the opportunity to use ore-sorting technology at the front of the Achmmach tin processing plant, to potentially increase the grade of ore entering the tin separation processes, increasing tin recoveries, and delivering reduced operating costs. In addition, the testwork programme includes validation of the use of high-pressure grinding rolls (HPGR) and other comminution testworks. The company has not previously considered the use of ore sorting and HPGR technology for the Achmmach project, which could have major positive impact on the Achmmach project’s economics. 
 
Kasbah has sourced two parcels of representative ore, including some waste material that would also be mined, from core drilled at the Achmmach project site and delivered them to Australia for testing at two suppliers of ore sorting equipment. The two sighting tests undertaken at both suppliers’ facilities have been successful and as a result a bulk sample of 2 t from Acmmach will now be undertaken. The ore for the bulk sample has already been sourced from the project, and it is due to start in late January. 

The testing programme, which includes validations of the use of HPGR and other comminution testworks, is ongoing and will be incorporated in to a new, updated DFS, expected to be completed in the second quarter of 2018,” CEO Russell Clark has said.

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.