PERTH (miningweekly.com) – It is hoped that the Achmmach tin project, in Morocco, could be in production by 2020, following a positive definitive feasibility study (DFS).
ASX-listed Kasbah Resources on Monday reported that the DFS is based on an underground mine with an initial ten-year mine life, producing 750 000 t/y of ore, at an average head grade of 0.82% tin.
The associated processing plant will produce about 4 500 t/y of tin, in a 60% tin concentrate.
The study is based on an ore reserve estimate of seven-million tonnes, at 0.82% tin for some 58 000 t of contained tin.
The project is estimated to have a post-tax net present value of $98.1-million and a 23% internal rate of return, while capital costs have been estimated at $96.4-million and all-in sustaining costs at $11 435/t of tin.
“We are delighted with the results of the 2018 DFS for the Achmmach tin project. The 2018 DFS follows on from a number of previous studies, and while it incorporates elements of those studies, our ability to successfully utilize ore sorting and high pressure grinding rolls technology in a new processing flow sheet has delivered a significant positive impact on project capital and operating costs, as well as tin recovery,” said Kasbah CEO Russell Clark.
“This, in conjunction with a strong prevailing tin price which is predicted by the International Tin Association to be sustained or improved in the future, has resulted in this very positive DFS outcome.”
Based on the study outcomes, Kasbah and its joint venture partners Toyota Tsusho and Nittetsu Mining, have decided to proceed with securing project funding, offtake partners, and a suitable engineering, procurement and construction engineering contractor with the aim of starting construction in 2019, and production in 2020.
“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,” Clark said.
“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.”