Name and Location
Achmmach tin project, Morocco.

Client
Kasbah Resources (75%), Toyota Tsusho Corporation (20%), 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 a total of 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.

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
Indicative term sheets have been received. Pending due diligence, final commercial negotiations and Kashbah board approval, the company will seek to raise the remaining equity needed to support a decision to mine over the next six to nine months. Once a project financing package is agreed on, a decision to mine can be made.

Over the next six months, the operating joint venture for the project will work towards finalising offtake and debt financing discussions, while it will also seek to start front-end engineering and design for the project.

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.