AMN - DRC: Updated Bisie study increases resources

Alphamin Resources Corp has updated its Feasibility Study for its 80.75%-owned Bisie tin project in the Walikale Territory of North Kivu province in the Democratic Republic of Congo. The Updated Feasibility Study (UFS) updates the Original Feasibility Study (OFS), of February this year, and is based on an increase in Bisie’s Mineral Resources.

Alphamin CEO Boris Kamstra says: “The 34% increase in the Indicated Mineral Resources announced on 11 May 2016 and improved tin price outlook has enhanced the forecast economic performance indicators for Bisie significantly. The improvement in profitability and extension to the life of mine reinforces our belief that the project forms the ideal foundation on which to build a mining company and associated infrastructure for mining in the tin-rich province of North Kivu.

“The project is based on proven mining and tin recovery methods, which should make it straightforward to operate, with low unit tin production costs and significant growth opportunities. Our UFS confirms our view that Bisie presents an attractive opportunity to invest in one of the highest grade known tin deposits provinces in the world.”

A May report increased the Probable Mineral reserves to 152,768 tonnes of contained tin (3.52 million tonnes of ore @ 4.34% tin). Adjusting for this change and improved economic outlook relative to the previous Definitive Feasibility Study, released in February, has resulted in a 76% rise in NPV to $262.7 million at an 8% discount rate.

The cash cost of operations and sales has risen by 5.7% to $8,935/tonnes of tin and projected capital expenditure has also increased 4.2% to $124.2 million.

The proposed underground mine is now expected to produce 10,750 tonnes/year of tin-in-concentrate over a 12 year mine life with construction expected to start in the first quarter of 2017 and first production targeted by third quarter 2018. Development of the project will bring jobs to the area with 700 people employed in construction of the mine with 450 people employed locally.

“The Alphamin team has continued to improve the economic performance indicators of the project through additional drilling and further engineering of the mine design and schedule. The high tin grades in the mill feed will result in excellent metallurgical recoveries and produce a premium concentrate for smelting.

The Alphamin team is also committed to contributing to the stability and economic activity in North Kivu, bringing significant benefit to the community and other stakeholders alike.

As a result, great progress is being made in road building and other community development initiatives,” said Kamstra.

He further emphasised that the project design also allows for a phased scale-up of production from additional exploration targets surrounding the Mpama North area.

www.alphaminresources.com

News courtesy of International Mining