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ALPHAMIN RESOURCES CORPORATION - Alphamin initiates resource extension drilling, construction of a fine tin recovery plant and increase in ownership

Release Date: 29/07/2020 13:59
Code(s): APH     PDF:  
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Alphamin initiates resource extension drilling, construction of a fine tin recovery plant and increase in ownership

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 INITIATES RESOURCE EXTENSION DRILLING, CONSTRUCTION OF A FINE TIN
    RECOVERY PLANT AND INCREASE IN OWNERSHIP OF ITS FLAGSHIP TIN MINE

MAURITIUS – July 29, 2020 – Alphamin Resources Corp. (AFM:TSXV, APH:JSE AltX, “Alphamin”
or the “Company”) is pleased to provide the following updates regarding its operational initiatives
and ownership level of its flagship Bisie tin mine in the Democratic Republic of the Congo.

Alphamin to increase ownership of its Bisie tin mine

In connection with Alphamin’s equity offering concluded in May 2020, Alphamin settled certain third-
party indebtedness of indirect subsidiary Alphamin Bisie Mining SA (ABM), the owner of the Bisie tin
mine, by the issue of Alphamin shares in consideration for a temporary loan due by ABM. Alphamin
has now secured the required Board and shareholder approvals from ABM to convert this ABM loan
into new shares of ABM. This will increase Alphamin’s equity ownership of its flagship tin mine from
80,75% to 84,14%.

Fine Tin Recovery Project

Alphamin has appointed Obsideo (Pty) Ltd as its engineering, procurement and construction
management (EPCM) contractor for the execution of its Fine Tin Project (FTP). The FTP is focussed
on treating the tailings stream from its gravity concentration plant at Bisie to recover the fine to ultra-
fine tin particles.

"When we first commissioned the gravity concentration plant at Bisie, we were focussed on ramping
up to a production level of 10,000 tonnes of payable tin per annum, which we have surpassed since
Q2 2020 at an annualised ~11,000 tonnes. We believe we can increase plant throughput by another
10% through minor plant de-bottlenecking activities – this could increase annual tin production to
~12,000 tonnes. Additionally, in our efforts to maximise metallurgical recoveries, we have identified
process flow streams that contain fine, recoverable tin, and have selected proven metallurgical
technology to recover the fine tin from these streams, which should increase tin output further at very
low incremental operating costs" said Maritz Smith, CEO of Alphamin.

The FTP will utilise Multi Gravity Separators (MGS), set-up in rougher-cleaner configuration, to treat
a 20 ton per hour process flow stream from the current plant’s tailings running at a grade of 0.8-1.1%
tin. The FTP is estimated to produce a concentrate containing 45-55% tin which will be blended with
the concentrates from the main gravity concentration plant to produce a final concentrate estimated
to contain 60% tin.

“The MGS technology was selected for the FTP as a result of its proven track record in the tin industry
to recover particles down to 10um in size, low energy requirements and the high upgrade ratios
achievable. Internal analysis shows the FTP has the potential to increase production at Bisie by 400
– 800 tonnes of payable tin per annum. By increasing units of production at a very low incremental
cost, the FTP is expected to further decrease our all-in sustaining costs (AISC), securing our place
as a lower quartile cost producer.” said Smith.

The projected timeline for the FTP execution from approval to achieving nameplate capacity is 11-
months. Orders for the long lead items have already been placed and the total project expenditure
is estimated at US$4,6 million.

Mpama South Drilling Program

Alphamin has appointed T3 Drilling SARL, an internationally recognised drilling contractor, to
undertake a 6,000 metre diamond core drilling program at its Mpama South prospect, commencing
in Q3 2020. Mpama South is located approximately one kilometre south of the main processing plant
at Bisie and the drilling program has been designed to delineate a maiden Mineral Resource at
Mpama South.

Between 2012 and 2013, Alphamin drilled 19 drill holes for 3,364 metres to determine the extent and
nature of the mineralization at Mpama South. Two distinct mineralized zones were intercepted, an
upper zone showing well-developed lead, zinc and silver mineralization, and a lower zone rich in tin
and copper.

“We are encouraged by the historical drilling results from Mpama South and we are optimistic that
by applying our exploration experience as demonstrated at Mpama North, that this drilling program
will deliver sufficient information to support the declaration of our maiden Mineral Resource at
Mpama South and allow for possible extension to the life of operations at Bisie.” commented Smith.
“While Mpama South is the first drill target post successful commissioning of the Mpama North
operations, we have already identified a number of areas along the Bisie Ridge showing soil
geochemistry anomalies similar to those found at Mpama North. We expect to generate a further 3-
5 drill targets from these anomalies over the next 18-months. Additionally, plans are being developed
for deep level drilling at our producing Mpama North orebody which is currently open at depth.”

Qualified Person

Mr Vaughn Duke Pr.Eng. PMP, MBA, B.Sc. Mining Engineering (Hons.), is a qualified person (QP)
as defined in National Instrument 43-101 and has reviewed and approved the scientific and technical
information contained in this news release. He is a Principal Consultant, Partner and Director of
Sound Mining Solutions, an independent technical consultant to the Company.
_____________________________________________________________________________________

FOR MORE INFORMATION, PLEASE CONTACT:

Maritz Smith
CEO
Alphamin Resources Corp.
Tel: +230 269 4166

E-mail: msmith@alphaminresources.com

JSE Sponsor
Nedbank Corporate and Investment Banking

AISC

This measures the cash costs to produce and sell a ton of payable tin plus the capital sustaining
costs to maintain the mine, processing plant and infrastructure. This measure includes mine
operating production expenses such as mining, processing, administration, indirect charges
(including surface maintenance and camp), and smelting, refining and freight, distribution, royalties
and capital sustaining costs divided by tons of payable tin sold. All-In sustaining cost per ton sold
does not include depreciation, depletion, and amortization, reclamation, borrowing costs and
exploration expenses.

Sustaining capital expenditures are defined as those expenditures which do not increase payable
mineral production at a mine site and excludes all expenditures at the Company’s projects and
certain expenditures at the Company’s operating sites which are deemed expansionary in nature.

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 anticipated production volumes and anticipated tin grades and processing recoveries.
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: uncertainties associated with Alphamin’s resource and reserve estimates, uncertainties regarding
estimates of the expected mined tin grades, processing plant performance and recoveries,
uncertainties regarding global supply and demand for tin and market and sales prices, uncertainties
with respect to social, community and environmental impacts, adverse political events, impacts of
the global Covid-19 pandemic on mining operations and commodity prices 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: 29-07-2020 01:59:00
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