Overview

Kasbah, through its Moroccan subsidiaries, hold an attractive package of tin tenements in a historical tin field in Morocco. The flagship asset is the Achmmach Tin Project (75% owned), which is the most advanced greenfield tin project in the world. In addition to the Achmmach Tin Project, Kasbah's asset includes the wholly owned Bou El Jaj Tin Project and the highly prospective regional tenements of Ment and Zaer, all of which are located within 30 kms of the proposed Achmmach tin processing facility.  

Kasbah's Tin District

The Achmmach Tin Project - the most advanced greenfield tin project in the world

Achmmach Tin Project 2018 Definitive Feasibility Study

Achmmach Tin Project 2018 DFS

In July 2018, the Group announced the very positive results from the 2018 Definitive Feasibility Study of the Achmmach Tin Project. Key highlights from the 2018 DFS include:

  • Post tax NPV of US$98.1 million, with a 23% IRR using a tin price of US$21,000 per tonne and an 8% real discount rate
  • Every additional US$1,000 increase in tin price increases Project NPV and ungeared returns by approximately US$20 million and 3% respectively
  • Capital cost of US$96.4 million
  • C1 cash cost of US$9,176/tonne of tin, and a payback period of 4 years
  • All In Sustaining Cost (AISC) of US$11,435/tonne of tin
  • 7% increase in Ore Reserve Estimate to 7 million tonnes at a grade of 0.82% and a 4% increase in contained tin to 58,000 tonnes
  • Initial 10-year mine life via underground mining operation - orebody open along strike and at depth providing excellent near mine exploration potential
  • Ore Sorting and high pressure grinding rolls (HPGR) technology increase tin recovery, lower environmental footprint and result in better investor returns
  • Overall tin recovery of 77%, with annual tin production of approximately 4,500 tonnes of tin in concentrate, averaging 60% tin

Front End Engineering and Design

During FY2019, as a precursor to entering into an Engineering, Procurement and Construction (EPC) contract with reputable, credit worth engineering firms, the Group undertook a Request for Proposal for the Front End Engineering and Design (FEED) scope. The FEED aimed at enhancing and improving the design and efficiencies in the processing plant, thereby reducing risk and targeting an improved EPC price for the construction of the processing plant.

The scope of the FEED included:

  • Optimisation of the process plant layout and design;
  • Increase in equipment sizing to reduce the risk of bottlenecking in the processing plant; and
  • Reduction of project schedule through effective planning and optimisation of construction strategies.

The FEED resulted in a number of proposed improvements to the Achmmach Tin Project, including:

  • Optimisation of the process flowsheet with addition of best practice tin process equipment in the spirals and tin flotation;
  • Reduction in the overall project costs through efficient design and effective sourcing of materials, including from the Mediterranean region; and
  • Relocation of the crushing plant and processing plant and introduction of overland conveyors to minimise earthworks and concrete quantities, reducing geotechnical risk.

The improvements and higher level of engineering design and cost detail provided further confidence in the project and confirms that capital costs of the project are within range included in the 2018 DFS. The FEED provided a well-defined scope of work for competitively tendering the EPC contract when the project progresses to implementation, along with further engineering design and project optimisation in a lead up to a project construction decision.

Independent Technical Specialists Report

Following completion of the FEED, the Company engaged AMC Consultants as the Independent Technical Expert (ITE) to complete an Independent Technical Specialists Report (ITSR) for the Achmmach Tin Project.

The ITSR was performed based on the 2018 DFS, the 2019 FEED as well as other supplementary information from work performed since the release of the 2018 DFS, including additional ventilation and geotechnical reviews.

The ITSR confirmed the technical viability of the 2018 DFS and provided certain recommendations around additional optimisation opportunities for consideration as the project is advanced towards development.

Investment Agreement

The Investment Agreement is an overarching agreement with the Moroccan Government that consolidates the various infrastructure incentives and embeds the overall fiscal regime for the Project. The Centre for Regional Investments (CRI) of the Meknès-Tafilalet region and Agence Marocaine de Développement des Investissements et des exportations (AMDIE) have reviewed and approved the Achmmach Tin Project submission, which has subsequently been approved by a national ministerial committee. 

Permits and Licenses

The Environmental and Social Impact Assessment (ESIA) for the Achmmach Tin Project was completed in 2014 and in 2019, was renewed for a further five years.The ESIA is a critical permit required to operate and sets out the fundamental environmental and social compliance framework. The renewal confirmed the Company's compliance with Moroccan environmental and regulatory requirements and reaffirms the Moroccan authorities support for the project. The renewal of the ESIA was an important step in securing the tenure of the mining license. 

Environmental and Social Impact Assessment

 

The Bou El Jaj Tin Project

Bou El Jaj Tin Project

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