AMN - DRC: Full commissioning at Bisie on track

Alphamin Resources Corp has completed commissioning of the processing plant front-end crushing circuit at its flagship Bisie Tin Project in the DRC. The circuit has been running at nameplate capacity of 60 tonnes per hour and as of March 1, 6500 tonnes of ore had been crushed and stockpiled for feeding into the gravity separation circuit.

The front-end crushing circuit was commissioned on January 8, 2019, on schedule. This includes the primary crusher, two tertiary crushers and the screening buildings.

The company has also started cold commissioning on the gravity concentration section and reports that this is progressing well.

Full commissioning and ramp-up is scheduled to occur during the June quarter and production at planned throughput is planned to begin in the September quarter.

In connection with the change of mining method to a cut and fill method, a detailed mine schedule for 2019 and 2020 has been received and production of ore from the cut and fill stoping operation has started.

The underground mine capital footprint was completed at the end of December 2018, two months ahead of schedule.

A life of mine schedule is expected during the June quarter following which the company plans to update its NI 43-101 and announce updated project economics.

Initial analysis indicates the unit costs per tonne will be higher in 2019 and 2020 than had been anticipated in the most recent feasibility study.

The company's CEO Boris Kamstra said: “To have achieved such significant progress to date on time and within budget for a project of this scale, in a challenging environment, is a testament to the skill and dedication of our staff and contractors on the ground.

"We look forward to the commencement of tin concentrate production in the near future and will keep the market appraised of developments in this regard.”

Alphamin has reviewed the working capital requirements to achieve planned production volumes and the current cash flow projections indicate a likely short-term working capital shortfall.

Factors impacting the projected working capital shortfall include:

- A delayed response to a request to partially export concentrates by airfreight, requiring the company to truck all export material, which has impacted delivery times and related revenue receipts;

- A delay in VAT refunds and the delayed manufacture and delivery of certain components to finalise plant commissioning; and

- The change in the mining method has resulted in a slower ramp-up of material to the ROM stockpile.

The company estimates that up to $9 million may be required to bridge this expected working capital deficit and enable the company to acquire certain sustaining capital and critical spares.

Management considers it prudent to seek a working capital facility of up to US$12 million, which exceeds the projected shortfall of $9 million but provides a buffer for any additional unforeseen events or challenges. The company is in discussions with its lenders to provide this facility.

www.alphaminresources.com