TIDMATM

RNS Number : 3383J

AfriTin Mining Ltd

26 April 2022

26 April 2022

AfriTin Mining Limited

("AfriTin" or the "Company")

Uis Phase 2 Expansion: Preliminary Economic Assessment (PEA) Results

AfriTin Mining Limited (AIM: ATM), an African tech-metals mining company with a portfolio of mining and exploration assets in Namibia, is pleased to announce the results of its internally produced Preliminary Economic Assessment ("PEA") for the Phase 2 expansion of the Company's flagship polymetallic asset, the Uis Mine ("Uis").

Link to full pdf version with images: https://afritinmining.com/uis-phase-2-expansion-preliminary-economic-assessment-pea-results/

Highlights:

   --      After-tax NPV8 of US$2.1 billion, and IRR of 75%*; 

-- Significant annual cashflow with rapid payback of 1.5 years from an open-pit tin, lithium, and tantalum mine*;

-- Proven profitable Phase 1 Pilot plant significantly de-risks the execution and process flow design of Phase 2*;

-- Average production of 10 Mtpa ROM per year with 14-year mine life and low strip ratio of 1:2.6*;

   --      EBITDA margin of 64%, or US$62/t ROM*; and 
   --      Owner's CAPEX of $440m, including a 30% contingency.*. 

* subject to the assumptions, qualifications and limitations set out below

Anthony Viljoen (CEO) commented:

"I am delighted to present the preliminary economic assessment for Phase 2 at our flagship Uis asset in Namibia. This PEA shows outstanding economics and returns for the expansion and allows us to move forward with excitement to a full bankable feasibility. The fact we have successfully brought phase 1 into production allows us to significantly de-risk phase 2 from the considerable learnings in building a new mine. Phase 2 will see AfriTin produce globally significant volumes of tin, lithium and tantalum which are vital in meeting the demands of the transition to a new efficient greener technology future. "

Background to the PEA

The historic Uis Mine in Namibia was owned and operated by ISCOR between 1958 and 1991 as a tin mine. AfriTin set out to re-establish the operation in two phases: Phase 1 is a low capital, cash generating initial production facility, serving as a pilot for Phase 2, which is planned as a scaled-up version of the initial phase. Both phases also aim to exploit the tantalum and lithium by-product potential of the deposit. The Company has successfully established the tin producing circuits of Phase 1, with the by-product circuits currently in the design and testing stages. This puts the Company in a position to proceed with a feasibility study for the ultimate Phase 2, of which the PEA represents the first step.

Summary of Phase 2 Project Economics

The salient results of the Base Case of the Phase 2 PEA, including tin, lithium and tantalum, are presented in Table 1.

Table 1 : Summary of Economics (Base Case)

 
NPV (after tax, 8.0% real WACC)   US$2.10 billion 
IRR (after tax)                   75% 
Life of Mine                      14 years 
Initial CAPEX                     US$440 million 
Payback Period (after tax)        1.5 years 
Annual Gross Revenue              US$880 million 
Annual EBITDA                     US$620 million 
Ore Throughput                    10 million tpa 
                                   ROM 
AISC per ROM Tonne                US$35/t ROM 
Gross Revenue per ROM Tonne       US$97/t ROM 
EBITDA per ROM Tonne              US$62/t ROM 
EBITDA Margin                     64% 
 

Sensitivities

The sensitivity of the project economics to commodity prices was tested for Low and High price scenarios, in addition to the Base Case assumptions.

Table 2 : Project sensitivity to commodity prices (nominal, 2025 forecast)

 
Parameter                       Low       Base Case        High 
Tin Price                       30,000    40,500 *         50,000 
Petalite Price                  800       1,150 **         1,600 
Tantalite (Ta(2) O(5) ) Price   180,000   240,000 ***      300,000 
NPV (after tax)                 US$1.12   US$2.10 billion  US$3.01 billion 
                                 billion 
IRR (after tax)                 49%       75%              94% 
 

* Bloomberg Consensus Pricing (11 April 2022) - 2025 forecast (nominal)

** Wood MacKenzie February 2022 Quarterly Update - 2025 forecast (nominal)

*** Roskill Tantalum Outlook to 2029, 15(th) Edition - 2025 forecast (nominal)

Whilst the Directors believe these assumptions to be reasonable based on informed forecasts and trends it is nevertheless noted that (i) the valuation of the Uis project is particularly sensitive to the price of tin - the current tin price of US$43,949 per tonne is at a historic high; therefore there is no guarantee that the tin prices quoted here will be achieved; and (ii) not all the resources which form the basis of the assumptions are part of a JORC compliant resource update. Further information is provided below.

The sensitivity of the Phase 2 project economics was also tested for the exclusion of by-products, for the following three scenarios:

Table 3 : Project sensitivity to the exclusion of by-products

 
Parameter       Tin Only, No By-Products  Tin, & Lithium   Tin, & Lithium 
                                           By-product       By-product & Tantalum 
                                                            By-product 
Initial CAPEX   US$333 million            US$430 million   US$440 million 
NPV8 (after     US$610 million            US$1.95 billion  US$2.10 billion 
 tax) 
IRR (after 
 tax)           40%                       72%              75% 
 

Project Development Planning

The project development programme for the Uis Phase 2 project consists of the following planned work streams:

   --      Metallurgical test work related to the potential lithium and tantalum by-products; 

-- Exploration drilling with an ambition to expand the JORC-compliant mineral resource estimate and increase the geological confidence for by-product elements;

-- Feasibility studies including scoping analysis, trade-off analysis and refinement to bankability stage; and

-- Board approval for the the construction and commissioning of Phase 2 mining and processing facilities upon the successful completion of feasibility studies and associated project financing.

Metallurgical Test Work

The metallurgical and cost performance of the current tin producing operation provides a definitive input for the tin related aspects of the feasibility study for Phase 2. However, the Company is conducting a comprehensive test work programme for the potential lithium and tantalum by-products, and new, complementary technologies. The test work consists of off-site research and development by reputable service providers, and on-site bulk test work using pilot plant facilities.

Test work for a lithium product in the form of petalite concentrate is in progress with FT Geolabs (South Africa), Nagrom (Australia) and Anzaplan (Germany). In parallel, the Company intends to appoint an EPCM contractor for the construction and commissioning of a bulk test facility at Uis, to enable the pilot production of a 4.0% Li(2) O petalite concentrate that could potentially be sold into both the technical market (glass/ceramics) and the chemical market (converters to lithium carbonate/hydroxide).

Test work for the production of a tantalum concentrate is in progress with LightDeepEarth (Pty) Ltd (South Africa) and AfriMet Resources AG (Switzerland). The results of this work will inform the construction of a potential tantalum separation circuit at Uis.

Sensor-based ore sorting has been identified as a concentration technology with the potential to transform the capacity and cost base of processing facilities at Uis for tin, tantalum and lithium. Ore sorting can potentially pre-concentrate dry, coarsely crushed ore by two to four times the run-of-mine grade. AfriTin is collaborating with Steinert GmbH (Germany) to test and develop the metallurgical parameters as input to the feasibility study. In addition, the Company intends to appoint an EPCM contractor for the construction and commissioning of a bulk test facility at Uis, enabling the pilot production of both a tin/tantalum and lithium pre-concentrate.

Exploration programme

An exploration drilling programme is currently underway at Uis with the aim of expanding the mineral resource for tin over fourteen additional, historically mined pegmatites, all of which occur within a five km radius of the current processing plant. Further work is required to achieve a mineral resource target of 200 Mt of ore, which we believe is possible based on our knowledge of the area and the historic work already undertaken. The company has planned and is executing a full exploration drilling requirement of 150,000 m that will run concurrently with ongoing operations and feasibility studies. The programme aims to confirm the historical drill hole database for tin over the additional pegmatites and provide infill drilling data for the expansion of lithium and tantalum mineral resources.

Funding Strategy

The development of the Uis Phase 2 project is underpinned by the Company's technical, financial and managerial capability built up through the operation of the Uis Phase 1 project. The current Phase 1 operation produces approximately 850 tpa of tin concentrate, resulting in revenues of approximately US$20 million pa and an EBITDA of approximately US$10 million pa.

The Company believes that the expansion of Uis Phase 1, as set out in the announcement of 6 April 2022, can further enhance the cash generating capability of the Phase 1 operation. Table 4 sets out the EBITDA potential for the various stages of expansion of Phase 1, as well as for Phase 2.

Table 4 : Project milestones for Uis and projected EIBTDA impact

 
Phase    Milestone                        Potential Commissioning Date  Potential EBITDA (US$ pa) 
Phase 1  Crushing Circuit Expansion       Q4 2022                       US$20 million 
         Ore Sorting Implementation       Q4 2023                       US$50 million 
         By-product Implementation        Q2 2023                       US$100 million 
Phase 2  Ultimate Phase 2 Implementation   2026                         US$620 million 
 

The funding of the Phase 2 project will be determined by the Company and its Directors in due course but is likely to be derived from operational cash flows generated from the Phase 1 operation (Table 4), from project debt financing and/or a strategic equity component.

Mineral Resource

The mineral resource target for Uis Phase 2 consists of a JORC-compliant resource estimate of 72.54 Mt (see announcement dated 19 September 2019), the details of which are set out below; estimates are based on historical drill hole data (non-JORC-compliant, produced by ISCOR from 1958 to 1991) and internal estimates based on modelling of extensions to known pegmatites (non-JORC compliant).

A mineral resource estimate (MRE) for the V1/V2 pegmatite orebody has been reported by CSA Global in accordance with the JORC Code (2012 Edition) (see Appendix A below and the announcement dated 16 September 2019). The mineral resource has been reported above a cut-off of 0.05% Sn on 16 September 2019. Exploration targets for the other pegmatites proximal to V/V2 have been defined by the Company and are included in Table 4. Combined with the existing MRE, the total mineral resource target amounts to more than 200 million tonnes of ore. However, the non-JORC compliant resource and the Company's internal estimates, which are also not JORC compliant, are still subject to verification, validation and external review; accordingly, such numbers are provided for guidance only. There can be no guarantee that the final JORC-compliant resource estimate will reconcile with these early-stage calculations.

Table 5 : Mineral Resource target

 
Area                   Commodity   Resource Classification   Classification Ore Tonnes    Grade    Contained Metal (t) 
                                                             (Mt)* 
V1/V2                  Sn          JORC - Measured           21.54                        0.139 %  29 899 
  JORC - Indicated                                           13.05                        0.136 %  17 765 
  JORC - Inferred                                            36.95                        0.130 %  47 875 
  Subtotal                                                   71.54                        0.134%   95 539 
 Ta          JORC - Inferred                                 71.54                        85 ppm   6 091 
 Li(2) O     JORC - Inferred                                                              0.63 %   450 265 
Northern Cluster       Sn          Non-JORC                  34.26                        0.141 %  48 419 
 Ta          Non-JORC                                                                     80 ppm   2 740 
 Li(2) O     Non-JORC                                                                     0.50%    171 277 
Central Cluster        Sn          Non-JORC                  10.78                        0.142 %  15 277 
 Ta          Non-JORC                                                                     80 ppm   863 
 Li(2) O     Non-JORC                                                                     0.50%    53 908 
Southern Cluster       Sn          Non-JORC                  37.52                        0.128%   48 065 
 Ta          Non-JORC                                                                     80 ppm   3 001 
 Li(2) O     Non-JORC                                                                     0.50%    187 593 
Far Southern Cluster   Sn          Non-JORC                  51.85                        0.130%   67 410 
 Ta          Non-JORC                                                                     90 ppm   4 667 
 Li          Non-JORC                                                                     0.50%    259 267 
TOTAL                  Sn                                    205.95                       0.134%   274 710 
 Ta                                                                                       81 ppm   17 362 
 Li(2) O                                                                                  0.54 %   1 122 310 
 

* this is the gross to the project; the net attributable to AfriTin is 85% of this total.

Geology and Mineralisation

The mining licence ML 134 is approximately 200 km(2) in size and includes a large portion of a Sn-Nb-Ta type pegmatite swarm in the Uis area. The pegmatites are granitic in composition and are homogeneous intrusions without prominent mineral zonation. Mineralisation in terms of Sn, Ta and Nb is generally associated with alteration zones known as greisens and saccharoidal aplitic units. In addition to the Sn and Ta mineralisation within the Uis swarm, lithium phases have also been identified in the form of lepidolite, petalite, eucryptite and cookeite. On ML 134 the primary lithium mineral is petalite.

Mining

Mining will consist of conventional open pit methods employing low carbon truck and excavator combinations and is planned to take place over multiple pegmatite ore bodies from four to five pits concurrently. The total non-JORC compliant mining reserve (provided for guidance purposes only) is 134 million tonnes of ore, which could result in mine life of 14 years. The mining plan features a production rate of 10 Mtpa ROM ore at an average overburden stripping ratio of 2.6.

Metallurgy and Processing

An intensive ongoing test work programme in conjunction with the established Uis Phase 1 processing operations is underway to increase the level of confidence in the selected testing of processing technologies for production of saleable tin, tantalum, and lithium concentrates. For the production of tin the Phase 1 operation serve as a proof-of-concept for the larger scale Phase 2 development.

For Phase 2 the beneficiation process may involve dry crushing of the ROM ore and the use of sensor-based ore sorting once confirmed through test work. The pre-concentrates from this process could then be treated through various wet concentration circuits to produce saleable concentrates.

The tin and tantalum minerals could be pre-concentrated by employing x-ray transmission (XRT) ore sorting and concentrated through dense medium separation (DMS), gravity separation and magnetic separation. The lithium mineral petalite could be pre-concentrated through near-infrared (NIR) ore sorting, concentrated through DMS and cleaned through milling and flotation.

The following overall processing plant recoveries have been modelled in the PEA:

Table 6 : Overall processing plant recoveries.

 
Commodity   Overall Processing Plant 
             Recovery 
Tin         70% 
Lithium*    30% 
Tantalum*   20% 
 

* These by-products are not currently in production; figures based on metallurgical test work and theoretical process modelling.

A zero effluent plant is planned to include dewatering systems for all concentrate and discard streams to aim for maximum water conservation and eliminate the need for tailings dams. Dry tailings will be co-disposed with course plant discard onto a discard dump.

Bulk Infrastructure

Uis is connected to the main industrial centres by road. Gravel roads are regularly maintained and are suitable for heavy transport. Imports from South Africa are by road via Windhoek. The nearest port is Walvis Bay (230 km away). The intention is that all goods and products will be handled through this port. The port infrastructure is considered by the Directors to be of a high standard with capacity for container handling and bulk materials export.

The total estimated water supply for ore processing and domestic use for the project is 1,350,000 m(3) pa. The Directors consider the Erongo desalination plant between Swakopmund and Henties Bay on the west coast of Namibia to have sufficient capacity to supply water to the project. An existing pipeline delivers desalinated water to the Orano Mining facility at Trekkopje, where offtake is available for supply to Uis by way of a new pump system and pipeline. The feasibility study for Phase 2 will also investigate alternative water supply solutions, including a standalone desalination facility at the coast 110 km away. The Company is employing infrastructure specialist advisory Bigen to assist with technical and financial studies, including the exploration of alternative funding and offtake models.

A connection to the national power grid is planned for the Uis Project with a new feeder connected to the southern grid at a NamPower substation located at Trekkopje, due south of Uis. The estimated future demand for Uis is 40 MVA. The Phase 2 feasibility study will also explore alternative power infrastructure solutions, including a standalone renewable energy option, and alternative funding and offtake models.

Product Offtake

AfriTin has established an offtake agreement (valid until 2023 with the option to renew) for tin concentrate with the Thailand Smelting and Refining Company Ltd (Thaisarco), located in Phuket, Thailand. Thaisarco is one of the main tin smelting and refining companies outside China. The agreement, in place since 2019, provides for the sale of concentrate from Uis Tin Mining Company (the operational entity) directly to Thaisarco.

AfriTin has an established offtake agreement with AfriMet for all the tantalum concentrate produced. The agreement, in place since 2021, provides for the sale of tantalum concentrate from Uis Tin Mining Company (the operational entity) directly to AfriMet.

Long-term off-take agreements with conversion facilities, as well as sales on the spot market, will be fully investigated for lithium in the next phase of study. AfriTin has commenced with initial discussion with potential lithium chemical conversion companies, as well as various traders. The Company expects to produce bulk samples for potential offtake partners from its petalite bulk test facility from Q4 2022. Further updates will be provided in due course.

Under steady state conditions the Uis Phase 2 project is projected to produce:

   --      15,000 tonnes of tin concentrate per annum (9,000 tonnes of contained tin per annum) 

-- 1,000 tonnes of tantalum concentrate per annum (200 tonnes of contained Ta(2) O(5) per annum)

-- 450,000 tonnes of 4% lithium petalite concentrate per annum (18,000 tonnes of contained Li(2) O, or 45,000 tonnes of contained LCE per annum)

Considering the stage of the feasibility study, these production rates cannot be guaranteed.

Operating Expenditure (OPEX) and Capital Expenditure (CAPEX)

The assumptions for operating expenditure and capital expenditure utilised in the Company's internal PEA are set out below:

Table 7 : OPEX table

 
Description         Units                        Value (US$) 
Ore mining cost     US$/tonne of ore mined       4.30* 
                    US$/tonne of waste 
Waste mining cost    mined                       1.30 
Processing cost     US$/tonne of ore processed   7.50 
Mine overheads      US$ per annum                7,200,000 
Selling cost        US$/tonne of ore processed   20.30 
 

* Including rehandling & plant tailings co-disposal costs

Table 8 : Initial CAPEX Table

 
CAPEX Item                                Value (US$) 
Study Costs                               13,000,000 
Exploration                               30,000,000 
Working Capital                           20,000,000 
Mining Engineering and Mine Development   2,500,000 * 
Ore Processing Engineering                6,000,000 
Ore Processing Infrastructure             140,000,000 
Mine Support Infrastructure               30,000,000 
Bulk Electricity Supply                   40,000,000 
Bulk Water Supply                         57,000,000 
Contingency @ 30%                         101,550,000 
Project Total Initial Capital             440,050,000 
 

* Excludes mining equipment, assumes contractor mining

ESG Considerations and Credentials

AfriTin is committed to developing projects through responsible and sustainable mining operations that recognise tin, lithium and tantalum mining as fundamental to shaping the fourth industrial revolution and a green energy future. With this in mind, AfriTin is taking steps to build its approach to sustainability by the implementation of a five-year ESG roadmap aimed to deliver leading industry practise during Phase 2 operations. The Company's roadmap is aligned with leading international sustainability benchmarks, including the United Nations Suitability Development Goals, International Finance Corporation (IFC) Standards, and International Council of Metals and Mining (ICMM) Principles.

AfriTin's current operations in Namibia has established the Company as a respected employer and corporate citizen. The Directors believe that the Uis Phase 2 Project will act as catalyst for further economic growth and employment opportunities both directly and indirectly for the community around our operation, but also for the region and country. The Project is expected to be a significant contributor to the Namibian treasury through tax revenue. Through partnerships with government and civil society, we aim to ensure that benefits of our operational expansion extend beyond the life of the mine itself, so that the operations have a positive impact on the natural environment, climate change, and social capital.

AfriTin is committed to developing relationships with our stakeholders built on open, transparent, and constructive engagement, and securing a strong and stable social licence to operate.

Competent Person

The technical data in this announcement has been reviewed by Laurence Robb, a Non-Executive Director of AfriTin. Laurence Robb (BScHons, MSc, PhD, FGS, FGSSA, FRSSA) has more than 40 years of industry-related mineral project development experience. He is registered as a Professional Natural Scientist with The South African Council for Natural Scientific Professions, and Chartered Geologist with the Geological Society of London. He was Professor of Economic Geology and Director of the Economic Geology Research Institute in the University of the Witwatersrand's School of Geosciences. He is currently based at Oxford University as a Visiting Professor. He has reviewed the technical disclosures in this release and consents to the release of the information contained herein.

Forward-Looking Statements

This announcement may contain some references to forecasts, estimates, assumptions and other forward-looking statements. Although the Company believes that its expectations, estimates and forecast outcomes are based on reasonable assumptions, it can give no assurance that they will be achieved. They may be affected by a variety of variables and changes in underlying assumptions that are subject to risk factors associated with the nature of the business, which could cause actual results to differ materially from those expressed herein. All references to dollars ($) and cents in this announcement are in United States currency, unless otherwise stated. Investors should make and rely upon their own enquiries before deciding to acquire or deal in the Company's securities.

Glossary of abbreviations

 
EMP               Environmental management plan 
ESG               Environmental, social and governance 
ESIA              Environmental and social impact assessment 
ICMM              International Council on Mining and Metals 
IRR               Internal rate of return 
JORC              The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 
km                Kilometres 
LCE               Lithium carbonate equivalent 
Li                Symbol for Lithium 
Li -> Li (2) O    Metal to metal-oxide conversion factor of 2.153 
Li (2) O          Lithium oxide 
MVA               Megavolt amperes 
Nb                Symbol for Niobium 
NPV               Net present value 
pa                Per annum 
ppm               Parts per million 
ROM               Run-of-mine 
Sn                Symbol for Tin 
Ta                Symbol for Tantalum 
Ta -> Ta(2) O(5)  Metal to metal-oxide conversion factor of 1.211 
Ta(2) O(5)        Tantalum pentoxide 
tpa               Tonnes per annum 
WACC              Weighted average cost of capital 
 

Glossary of Technical Terms

 
Indicated Mineral Resource  The part of a Mineral Resource for which quantity, grade, quality, etc., can be estimated 
                            with a level of confidence sufficient to allow the appropriate application of technical 
                            and 
                            economic parameters, to support mine planning and evaluation of economic viability 
Inferred Mineral Resource   The part of a Mineral Resource for which quantity and grade or quality can be estimated on 
                            the basis of geological evidence and limited sampling and reasonably assumed, but not 
                            verified, 
                            geological and grade continuity 
Measured Mineral Resource   The part of a Mineral Resource for which quantity, grade or quality, etc., are well enough 
                            established that they can be estimated with confidence sufficient to allow the appropriate 
                            application of technical parameters to support production planning and evaluation of 
                            economic 
                            viability 
Mineral Resources           Mineral Resources are sub-divided, in order of increasing geological confidence, into 
                            Inferred, 
                            Indicated and Measured categories. An Inferred Mineral Resource has a lower level of 
                            confidence 
                            than that applied to an Indicated Mineral Resource. An Indicated Mineral Resource has a 
                            higher 
                            level of confidence than an Inferred Mineral Resource but has a lower level of confidence 
                            than a Measured Mineral Resource 
Petalite                    A lithium aluminium phyllosilicate mineral LiAlSi(4) O(10) 
 
 
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 
 Oliver Lamb 
 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 more than 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 assets in Africa.

APPIX A

Mineral Resource Estimate for Uis (taken from the announcement of 19 September 2019)

Table 1: AfriTin Mining tin (Sn) Mineral Resource estimate (JORC- 2012) of the Uis Tin Mine V1 and V2 pegmatites at a cut-off grade of 0.05% Sn.

 
                  Gross                     Net Attributable (85%*)      Operator 
                  Tonnes  Sn     Contained  Tonnes   Sn      Contained 
Resource           (Mt)    (%)    metal      (Mt)     (%)     metal 
 Classification                   (t)                         (t) 
                                                                         AfriTin 
Measured          21.54   0.139  29,899     18.31    0.139   25,414       Mining 
                                                                         AfriTin 
Indicated         13.05   0.136  17,765     11.09    0.136   15,100       Mining 
                                                                         AfriTin 
Inferred          36.95   0.130  47,875     31.41    0.130   40,694       Mining 
                                                                         AfriTin 
Total             71.54   0.134  95,539     60.81    0.134   81,208       Mining 
 

Source: CSA Global

Note: The constraining pit shell is based on a revenue factor of 1.5, employing a 3-year trailing average tin price of USD 20,000/t. Ore losses and mining dilution were set at 5%. Pit slope angles were assumed to be 50deg with an assumed metallurgical recovery of Sn of 80%, producing a concentrate of 60% Sn. Mining, Treatment, G and A and Selling Costs have been supplied by AfriTin and reviewed for reasonableness by CSA Global. A Sn cut-off grade of 0.05% Sn has been applied to resources within the constrained pit. Tabulated data have been rounded off and this may result in minor computational errors.

* AfriTin has an attributable ownership of 85% in Uis with the remaining 15% owned by The Small Miners of Uis (SMU)

Table 2: AfriTin mining Inferred resource (JORC-2012) estimate of ancillary elements within the Uis Tin Mine V1 and V2 pegmatites.

 
                    Gross              Net Attributable    Operator 
                                        (85%*) 
                    Ta (ppm)  Li(2)    Ta (ppm)   Li(2) 
Inferred Resource              O (%)               O (%) 
                                                           AfriTin 
Grade               85        0.63     85         0.63      Mining 
                                                           AfriTin 
Tonnes (Mt)         71.54     71.54    60.81      60.81     Mining 
Contained metal                                            AfriTin 
 (t)                6,091     450,265  5,177      382,725   Mining 
 

Source: CSA Global

Note: Tabulated data have been rounded off and this may result in minor computational errors. Contained metal for lithium refers to lithium oxide (Li(2) O)

* AfriTin has an attributable ownership of 85% in Uis with the remaining 15% owned by The Small Miners of Uis (SMU)

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