ALPHAMIN PROVIDES QUARTERLY PRODUCTION UPDATE
03 April 2020 - 10:51PM
Alphamin Resources Corp. (AFM:TSXV, APH:JSE AltX, “Alphamin” or the
“Company”) is pleased to provide the following production update
for the most recent quarter ended March 2020:
- Contained tin production of 2,119 tons – at
mid point of previous guidance range
- Processing recoveries of 71%
- in line with target
- Plant throughput up 19%
- Q2 2020 production guidance of 2,400 -
2,600 tons contained tin
- Excellent safety performance with zero lost
time injuries during the quarter
Production Summary for the Quarter ended
March 2020
Description |
Units |
Actual |
|
|
Quarter endedMarch
2020 |
Quarter endedDecember
2019 |
Variance |
Tons processed |
Tons |
85 060 |
71 559 |
19% |
Tin grade |
% Sn |
3,5 |
4,9 |
-29% |
Overall Plant recovery |
% |
71 |
64 |
11% |
Payable Tin produced |
Tons |
2 119 |
2 235 |
-5% |
Payable Tin sold |
Tons |
3286 |
1 109 |
196% |
The Bisie tin mine has continued with its
excellent safety record with zero lost-time injuries recorded
during the past quarter.
Contained tin production of 2,119 tons was at
the mid point of our previous market guidance. The commissioning of
two new remote controlled LHDs (load, haul, dump machines) during
February 2020 improved underground loading capacity and this
together with the impact of the recently announced new mining
method resulted in a 19% increase in run-of-mine material
processed. Tin grades are variable depending on where mining is
taking place and tapered off to 3.5% Sn during Q1 2020, in line
with expectations. Underground grades are expected to average 4.0%
Sn during the next quarter. The overall plant recovery of 71% was
in line with target and 11% above the previous quarter. Payable tin
sales exceeded production as we reduced the on-mine concentrate
stockpile during the months of February and March 2020 following
the repair of the collapsed bridge on the main access highway which
was opened to traffic on 25 January 2020.Production
Guidance for the next Quarter: We expect contained tin
production of between 2,400 and 2,600[1] tons for the quarter
ending June 2020 based upon run-of-mine tin grades planned at 4.0%
Sn and overall plant recoveries at 72%. Covid-19 Pandemic
and Impact on Operations:
The health of our employees is of paramount
importance and in this regard the Company has a range of Covid-19
awareness, prevention and other risk mitigation controls in place.
The Covid-19 crisis has seen global disruptions to supply chains.
To date, the Company has been able to continue with normal
production and concentrate sales activities. The main border
crossings relevant to our in and outbound activities are still open
to freight movement and our concentrate off-take customer is
currently able to send product to at least one tin smelter. The
situation remains dynamic and any issue impacting critical flow in
our supply chain or that would restrict operations or the
availablity of the Company’s workforce may negatively affect
production and sales activities. During this challenging time it is
important that the Company continues producing and selling tin
concentrates for the benefit of all our stakeholders, particularly
the economy and people of the North-Kivu province, DRC. Covid-19 is
having a negative impact on global commodity prices. The LME tin
price is currently ranging between US$13,500/t and US$14,500/t
compared to the Company’s recently released NI 43-101 Technical
Report which assumed a price of US$17,000/t. From a liquidity
perspective and basis current production rates, this current tin
price range supports ongoing production and sales costs together
with debt interest payments but higher tin prices will be required
to meet additional monthly debt capital repayments scheduled to
commence 31 July 2020. The Company continues to focus on achieving
its full production targets at the lowest possible unit
cost.Alphamin’s audited consolidated financial statements and
accompanying Management’s Discussion and Analysis for the year and
three months ended December 31, 2019 are expected to be released by
mid April 2020. The unaudited financial statements and accompanying
Management’s Discussion and Analysis for the three months ended
March 31, 2020 are expected to be released by the end of April
2020.
Qualified PersonMr. 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.__________________________________________________________________________________________[1]
Production guidance is based on certain estimates and assumptions,
including but not limited to: quantity of material processed, tin
grades of processed material and processing recoveries and assumes
mining operations will continue to be conducted in the same manner
as the previous quarter and will not be further impacted by the
Covid-19 pandemic.
FOR MORE INFORMATION, PLEASE
CONTACT:
Maritz
Smith
CEO
Alphamin Resources
Corp.
Tel: +230 269 4166E-mail: msmith@alphaminresources.com
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 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.
CAUTION REGARDING FORWARD LOOKING
STATEMENTS
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.
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