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 are reportedly 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 completed a high-pressure grinding roll (HPGR) testwork programme on run-of-mine ore from the Achmmach project in May, with very positive results.

The HPGR testwork confirmed the ability of HPGR to deliver the required size reduction of ore more efficiently and cost effectively than conventional rod milling.

Metallurgical analysis of the HPGR testwork results has also confirmed that there are no negative metallurgical impacts with regard tin recovery.

An HPGR will be included in the Achmmach processing plant replacing the rod mill or vertical hammer mills considered in previous studies.

Using an HPGR in the circuit requires that only two-stage crushing is required, rather than the three-stage crushing considered in previous studies.

The use of an HPGR will reduce power consumption and consumables.

HPGR and ore sorting were expected to be included in the new DFS for the Achmmach project, scheduled for release in June.

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.