Name and Location
Achmmach tin project, Morocco.

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

Project Description
An enhanced definitive feasibility study (EDFS) on the Achmmach project has incorporated the integration of the Western Zone resource into a revised underground mine design for the Meknès  trend; completing metallurgical studies on enhanced fine tin recovery from Meknès trend ore and revising the tailings management facility (TMF) construction strategy to achieve more efficient use of capital. The Achmmach underground mine design for the EDFS has been developed using the combined Meknès trend and Western Zone (WZ) mineral resources, resulting in an ore reserve of 9.22-million tonnes of ore at 0.77% tin, mining it over a nominal ten-year period. A cutoff grade of 0.55% tin has been determined as part of the ore reserve determination.

Mine design is based on a long-hole open stoping (LHOS) method using pastefill.

The mine will be accessed using twin portals. A cross drive will be established linking the Meknès trend with the WZ.

The mining schedule includes a proportion of low-grade incremental ore, which, where possible, will be delayed in the mine schedule in favour of delivering higher-grade ore to the run-of-mine pad.

Mine backfill will use cemented mill tailings, batched from a surface plant and reticulated underground. New mobile equipment will be acquired and replaced as required. LHOS is well suited to the Achmmach orebody geometry and rock mass competency and will allow for good ore recoveries with minimal dilution. Ore blocks will be developed at 20 m to 25 m intervals.

Paste backfill will be used for the majority of stopes to optimise the mining schedule by allowing for a top-down mining sequence. This results in near 100% ore extraction. Using pastefill for mining also reduces the TMF storage requirements and footprint.

Net Present Value/Internal Rate of Return
The EDFS estimate increases the base case net present value of 35% from the 2014 DFS from $126-million to $171-million, and the ungeared internal rate of return has increased from 23.2% to 32.9%, with the payback decreasing from 3.2 years to 2.3 years.

Value
Preproduction capital costs for the project in the DFS were estimated at $181-million. The EDFS has estimated an 18% reduction in preproduction capital to $148-million.

Duration
Production is expected in the first quarter of 2017.

Latest Developments
Achmmach has all the major approvals in place and, pending an appropriate funding solution, can be rapidly advanced to construction. In addition, Kasbah is investigating options to start mining on a smaller scale at the project, with a corresponding reduction in capital costs. This phased approach could set a platform for transitioning to full EDFS-scale production at a later date.

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.