To view the PDF file, sign up for a MySharenet subscription.

ALPHAMIN RESOURCES CORPORATION - Bisie tin project development update

Release Date: 01/03/2019 16:10
Code(s): APH     PDF:  
 
Wrap Text
Bisie tin project development update

Alphamin Resources Corp.
Continued in the Republic of Mauritius
Date of incorporation: 12 August 1981
Corporation number: C125884 C1/GBL
TSX-V share code: AFM
JSE share code: APH
ISIN: MU0456S00006
(“Alphamin” or the “Company”)

                                 BISIE TIN PROJECT DEVELOPMENT UPDATE

GRAND BAIE, MAURITIUS – March 1, 2019 – Alphamin Resources Corp. (AFM: TSXV, “Alphamin”, or the
“Company”) is pleased to announce an update to the development status of its flagship tin project in the DRC.

The processing plant front-end crushing circuit commissioning has been completed and has run at nameplate
capacity of sixty tonnes per hour. To date, some six thousand, five hundred tons of ore has been crushed and
stockpiled for feeding into the gravity separation circuit.

Cold commissioning on the gravity concentration section has also commenced and is progressing well.

In connection with the previously announced change of mining method to a cut and fill method, a detailed mine
schedule for 2019 and 2020 has been received. Production of ore from the cut and fill stoping operation has now
commenced. A life of mine schedule is expected during Q2 2019 following which the Company plans to update its
NI 43-101 and announce updated project economics. Initial analysis indicates the unit costs per ton will be higher
in 2019 and 2020 than had been anticipated in the Company’s most recent feasibility study.

Full commissioning and ramp up is scheduled to occur during Q2 2019. Production at planned through put is
planned to commence in Q3, 2019.

The Company has reviewed the working capital requirements to achieve planned production volumes . The current
cashflow 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 commisioning. In
addition to this, 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 $9m may be required to bridge this expected working capital deficit and enables
the Company to acquire certain sustaining capital and critical spares.

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

FOR MORE INFORMATION, PLEASE CONTACT:

Boris Kamstra
Chief Executive Officer
Alphamin Resources Corp.
Tel: +230 269 4166
E-mail: boris.kamstra@alphaminresources.com
Grand Baie, Mauritius

1 March 2019

JSE Sponsor
Nedbank Corporate and Investment Banking

CAUTION REGARDING FORWARD LOOKING STATEMENTS
Information in this news release that is not a statement of historical fact constitutes forward-looking information.
Forward-looking statements contained herein include, without limitation, statements relating to the terms and
intended completion of the Private Placement, the anticipated use of funds from the Private Placement, the
anticipated additional debt drawdown, the participation of the IDC and other stakeholders, costs of production,
success of mining operations, the ranking of the project in terms of cash cost and production, economic return
estimates, social, community and environmental impacts, and continued positive discussions and relationships
with local communities and stakeholders. Forward-looking statements are based on assumptions management
believes to be reasonable at the time such statements are made. There can be no assurance that such statements
will prove to be accurate, as actual results and future events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on forward-looking statements. Although
Alphamin has attempted to identify important factors that could cause actual results to differ materially from those
contained in forward-looking statements, there may be other factors that cause results not to be as anticipated,
estimated or intended. Factors that may cause actual results to differ materially from expected results described
in forward-looking statements include, but are not limited to: Alphamin’s ability to secure sufficient financing to
advance and complete the Project, uncertainties associated with Alphamin’s resource and reserve estimates,
uncertainties regarding global supply and demand for tin and market and sales prices, uncertainties associated
with securing off-take agreements and customer contracts, uncertainties with respect to social, community and
environmental impacts, adverse political events, uncertainties with respect to optimization opportunities for the
Project, as well as those risk factors set out in the Company’s Management Discussion and Analysis and other
disclosure documents available under the Company’s profile at www.sedar.com. Forward-looking statements
contained herein are made as of the date of this news release and Alphamin disclaims any obligation to update
any forward-looking statements, whether as a result of new information, future events or results or otherwise,
except as required by applicable securities laws.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Date: 01/03/2019 04:10:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Email this JSE Sens Item to a Friend.

Share This Story