TIDMATM
RNS Number : 6630V
AfriTin Mining Ltd
15 December 2021
15 December 2021
AfriTin Mining Limited
("AfriTin" or the "Company")
Quarterly Production Update
AfriTin Mining Limited (AIM: ATM), an African tech-metals mining
company with a portfolio of mining and exploration assets in
Namibia containing tin, lithium and tantalum, including its
flagship asset , the Uis Tin Mine ("Uis"), is pleased to provide a
production update for the three-month period ended 30 November 2021
(Q3 of the financial year).
Highlights:
-- Production of tin increased by 20% quarter-on-quarter ("QoQ") to 136 tonnes;
-- Ore tonnes processed increased by 17% QoQ to 149k tonnes;
-- All-in sustaining cost ("AISC") for the Uis operation improved by 22% QoQ to c. US$23k;
-- Construction of Uis Phase 1 Expansion Project is on track and on budget; and
-- Workstreams for an enhanced, large-scale Uis Phase 2
expansion have commenced, which include exploration drilling
targeting resource expansion to 150 million tonnes of ore and
metallurgical test work and piloting for lithium and tantalum
by-products.
Anthony Viljoen (CEO) commented:
"We are pleased to present a solid set of operational results
that exceed our internal production targets. Sustained improvements
in operational efficiencies have resulted in substantial increases
in ore processed and concentrate produced, and testifies to the
capacity and resilience of the AfriTin technical team.
These results provide us with the momentum to progress rapidly
with the expansion of our Phase 1 plant at Uis, and serve as proof
of concept for the planned, large-scale Phase 2 facility. By
leveraging economies of scale and the multi-commodity potential of
Uis, we are confident of achieving our ultimate aim of establishing
a tier-one tech-metal mining and processing operation."
Operational review:
During the quarter under review the Company has delivered a
strong operating performance and has made considerable progress
towards its goal of progressing the expansion of Uis to 10,000
tonnes of tin concentrate and 350,000 tonnes of lithium concentrate
per year in its Phase 2 expansion.
Uis produced 220 tonnes of tin concentrate, containing 136
tonnes of tin metal. The latter represents a 20% improvement on the
previous quarter, exceeding the nameplate production target of 108
tonnes of tin metal by 26%.
A 17% increase in plant throughput, totalling 148,700 tonnes of
ore for the quarter, was supported by continuous improvement
initiatives, which focussed on enhancing plant availability,
utilisation, processing rate and tin recovery. Plant availability
increased to 88% and plant processing rate to 94 tonnes per hour.
Tin recovery for Q3 (61%) remained above the nameplate target of
60%.
The plant feed grade of 0.150% tin compares favourably with the
projected life-of-mine feed grade of 0.138% tin. The higher feed
grade is the result of natural grade variations in the ore body as
modelled in the life-of-mine plan.
The enhanced operational efficiencies from the continuous
improvement programme at Uis, resulted in a substantial improvement
in operating cost and AISC (18% and 22% respectively QoQ). The AISC
of US$23,290 per tonne of contained tin compares with the achieved
price of US$39,025 per tonne. The AISC is expected to continue its
downward trend driven by the commissioning of the Phase 1 Expansion
Project and further process improvements to be implemented over the
next 6 months, by leveraging fixed costs through economies of scale
and higher efficiencies.
Uis Expansion:
The Uis deposit, located in Namibia, was discovered in 1911 and
developed into the largest hard-rock tin mine in the world at the
time. Production ended in 1990 as a result of low tin prices.
AfriTin is redeveloping the mine in two phases. Phase 1 involves
a pilot plant which is in full operation. Current nameplate
production of 720 tonnes of tin concentrate per annum has been
achieved and the plant is profitable on tin alone. The Phase 1
Expansion Project is projected to increase tin concentrate
production by 67%, is on track and on budget, with all long lead
equipment items already ordered. Detailed design work has been
completed, civils construction has commenced, and steel fabrication
is in progress. Construction and commissioning of the expanded
plant is on track to be completed in Q2 2022.
Workstreams for an enhanced, large-scale Uis Phase 2 expansion
are in progress. The Phase 2 operation is envisaged to produce
10,000 tonnes of tin concentrate, 350,000 tonnes of lithium
concentrate, and 1,000 tonnes of tantalum concentrate per annum.
Phase 2 workstreams include an exploration drilling programme
announced on 26 October 2021, a by-product development programme
announced on 18 November 2021, and additional studies for upgrading
bulk water and power supply infrastructure.
The aim of the exploration drilling programme is to expand the
existing Mineral Resource Estimate (71.5 million tonnes of ore)
through confirmation of the historical resource estimates at Uis.
The latter, combined with mapping data for virgin pegmatite ore
bodies, provides the basis for the Company's resource target of 150
million tonnes. In addition, the drilling programme will increase
the geological confidence for modelling potential lithium and
tantalum by-product elements.
The aim of the by-product development programme is to enhance
the beneficiation processes and offtake routes for additional
revenue streams though the sale of separate lithium and tantalum
products. The programme includes a range of off-site metallurgical
test work campaigns, as well as on-site bulk test work and
piloting.
The installed bulk water and power infrastructure has sufficient
capacity to meet the requirements of the expanded Phase 1 plant.
However, Phase 2 will require infrastructure upgrades. The Company
is engaged with the Namibian state-owned utilities and various
private sector entities to explore options related to bulk water
and power supply. Potential solutions include renewable energy
generation and linking up to existing desalinated water supply
infrastructure in the region.
The Company will provide regular updates to the market on the
progress of these programmes.
Table 1 : Quarterly performance of the Uis Phase 1 processing
plant during the 2022 financial year.
Description Units 2022 Financial Year (March 2021 to February 2022)
Q1 Actual Q2 Actual Q3 Actual Q3 vs Q2
(Mar 2021 - May 2021) (Jun 2021- Aug 2021) (Sep 2021 - Nov 2021) (% change)
----------------------- ---------------------- ----------------------- ------------
Plant
Availability % 75 78 88 13%
-------------- ----------------------- ---------------------- ----------------------- ------------
Plant
Utilisation % 83 85 84 -1%
-------------- ----------------------- ---------------------- ----------------------- ------------
Plant
Processing
Rate tph 84 87 94 8%
-------------- ----------------------- ---------------------- ----------------------- ------------
Ore Processed t 115,751 127,263 148,700 17%
-------------- ----------------------- ---------------------- ----------------------- ------------
Feed Grade % tin 0.167 0.137 0.150 10%
-------------- ----------------------- ---------------------- ----------------------- ------------
Tin
Concentrate t 183 185 220 19%
-------------- ----------------------- ---------------------- ----------------------- ------------
Tin Contained
in
Concentrate t 114 113 136 20%
-------------- ----------------------- ---------------------- ----------------------- ------------
Tin Recovery % 59 65 61 -6%
-------------- ----------------------- ---------------------- ----------------------- ------------
Operating US$/t
cost for Uis contained
Tin Mine * tin 24,084 26,625 21,834 -18%
-------------- ----------------------- ---------------------- ----------------------- ------------
US$/t
AISC for Uis contained
Tin Mine ** tin 28,158 29,931 23,290 -22%
-------------- ----------------------- ---------------------- ----------------------- ------------
US$/t
Tin Price contained
Achieved tin 30,749 34,235 39,025 14%
-------------- ----------------------- ---------------------- ----------------------- ------------
* Operating Cost (excludes sustaining capital expenditure
associated with developing and maintaining the Uis operation;
unaudited)
** AISC = All-In Sustaining Cost (incorporates all costs related
to sustaining production and in particular recognising the
sustaining capital expenditure associated with developing and
maintaining the Uis operation, including pre-stripping waste mining
costs; unaudited)
AfriTin Mining Limited +27 (11) 268 6555
Anthony Viljoen, CEO
Nominated Adviser +44 (0) 207 220 1666
WH Ireland Limited
Katy Mitchell
Corporate Advisor and Joint Broker
H&P Advisory Limited
Andrew Chubb
Jay Ashfield
Nilesh Patel +44 (0) 20 7907 8500
Stifel Nicolaus Europe Limited
Ashton Clanfield
Callum Stewart +44 (0) 20 7710 7600
Tavistock Financial PR (United
Kingdom) +44 (0) 207 920 3150
Jos Simson
Nick Elwes
About AfriTin Mining Limited
Notes to Editors
AfriTin Mining Limited is a London-listed tech-metals mining
company with a vision to create a portfolio of globally
significant, conflict-free, producing assets. The Company's
flagship asset is the Uis Tin Mine in Namibia, formerly the world's
largest hard-rock open cast tin mine.
AfriTin is managed by an experienced board of directors and
management team with a current strategy to ramp-up production at
the Uis Tin Mine in Namibia to 10,000 tonnes of tin concentrate and
350,000 tonnes of lithium concentrate in a Phase 2 expansion,
having reached Phase 1 commercial production in 2020. The Company
strives to capitalise on the solid supply/demand fundamentals of
tin and lithium by developing a critical mass of resource
inventory, achieving production in the near term and further
scaling production by consolidating tech-metal assets in
Africa.
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