Kasbah Resources has completed a positive definitive feasibility study (DFS) for the Achmmach tin project in Morocco, which is expected to have development costs of $96.4m.
According to the company, the DFS has confirmed the project’s potential to be developed into a large-scale tin mining operation.
Based on the DFS, the project will have post-tax net present value (NPV) of $98.1m and an internal rate of return (IRR) of 23%.
The project is expected to have an initial mine life of ten years through a proposed underground mining operation, with production of 750,000t of ore per annum at an average head grade of 0.82% tin (Sn).
Kasbah also plans to build a processing plant at the Achmmach site, which will have a processing plant that will produce around 4,500t of tin a year in a 60% tin concentrate.
The plant will be equipped with ore-sorting and high-pressure grinding rolls (HPGR) technology that is designed to increase tin recovery and reduce the site’s environmental impact.
Kasbah Resources chief executive Russell Clark said: “The 2018 DFS follows on from a number of previous studies and whilst it incorporates elements of those studies, our ability to successfully utilise ore-sorting and HPGR technology in a new processing flow sheet has delivered a significant positive impact on project capital and operating costs, as well as tin recovery.
“This, in conjunction with a strong prevailing tin price which is predicted by the International Tin Association to be sustained or improve in the future, has resulted in this very positive DFS outcome.
“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.”
Following the positive DFS results, the management will work towards securing funding, signing offtake deals and contracts for EPC and underground mining.
Kasbah and its partners are planning to begin construction of the project next year, and production in 2020.