Alphamin Resources Corp, listed on the TSX-V, has reported on the results of an update to its Feasibility Study for its 80,75 %-owned Bisie tin project located in the Walikale Territory of North Kivu Province in the DRC. The Updated Feasibility Study (UFS) updates the Original Feasibility Study (OFS) (dated February 2016) and is based on an increase in Bisie’s mineral resources.
“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 (LoM), 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,” commented Boris Kamstra, CEO of Alphamin.
“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 shareholders with an attractive opportunity to invest in one of the highest grade known tin deposits provinces in the world.
“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.”
Kamstra further emphasised that the project design also allows for a phased scale-up of production from additional exploration targets surrounding the Mpama North area. The UFS is based on an underground mine at the Mpama North orebody containing over 208 000 tonnes of tin from defined measured and indicated mineral resources. The process plant is designed to treat the run of mine (ROM) material using proven gravity separation methods.
It is anticipated that the project will employ approximately 700 people during construction, and create approximately 450 permanent local jobs during operations along with significant economic benefits in an area of the DRC that has seen little foreign investment.
The UFS envisages the project implementation plan being executed over a period of 18 months. Establishment of the underground mine is scheduled to commence in Q1 2017, with ore development and stoping commencing six months after the establishment of the mining portal. First production of tin in concentrate is anticipated in Q3 2018.
The project requires an estimated initial capital expenditure of US$124,2 million to support the construction of an access road, an underground mine, a process plant, a tailings dam and associated facilities with a ROM process capacity of 360 kt/a. The mine is estimated to produce 10 750 tonnes of tin in concentrate on average per year over an almost 12-year LoM, with cash costs of production of US$7 396 per tonne tin.
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