TIDMATM
RNS Number : 8296I
AfriTin Mining Ltd
07 December 2022
7 December 2022
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 (MAR) as in force in
the United Kingdom pursuant to the European Union (Withdrawal) Act
2018. Upon the publication of this announcement via Regulatory
Information Service (RIS), this inside information is now
considered to be in the public domain.
AfriTin Mining Limited
("AfriTin" or the "Company")
Lithium and Tantalum Product Development Update
AfriTin Mining Limited (AIM: ATM), an African technology metals
mining company with a portfolio of mining and exploration assets in
Namibia, provides an update on its lithium and tantalum product
development programme.
The object of the programme is to demonstrate the potential
commercial viability of a lithium petalite concentrate co-product
from the Uis Mine ("Uis"), and provide samples for potential
offtake partners, whilst simultaneously de-risking the development
of commercial-scale processing plant for lithium. In addition, the
programme also includes the implementation of a full-scale tantalum
separation circuit to produce a tantalum concentrate by-product
from the tantalum contained in the existing tin concentrate
product.
Milestones Achieved
-- Lithium laboratory test work has produced a high-grade,
ultra-low iron lithium petalite concentrate at 4.34% Li(2) O and
low contaminants levels of 0.03% Fe(2) O(3) and 0.93% alkalis
(Na(2) O + K(2) O);
-- Test work to convert lithium petalite concentrate to
battery-grade lithium hydroxide has been initiated with Nagrom, one
of Australia's leading mineral processing companies;
-- Commercial engagements with lithium petalite concentrate offtakers have been initiated;
-- Infill exploration drilling programme for lithium and tantalum over V1/V2 orebody complete;
-- Tantalum laboratory test work produced a saleable 24%
tantalum oxide (Ta2O5) concentrate; and
-- Nicholas Rathjen appointed as Head of Business and Commercial
Development to advance the commercial aspects of AfriTin's lithium
and tantalum potential.
Anticipated News Flow
-- Larger, pilot scale lithium metallurgical testing, which will
also produce samples for potential offtakers, has commenced, with
first results expected in Q1 2023
-- First results from laboratory metallurgical test work with
Nagrom to produce battery-grade lithium hydroxide expected in Q3
2023;
-- A lithium pilot plant, intended for processing bulk ore
samples at Uis, is progressing to construction phase, with long
lead items ordered. Construction is scheduled to complete in Q2
2023;
-- Updated lithium and tantalum Mineral Resource Estimate for
lithium and tantalum expected in Q1 2023 following final infill
drilling results; and
-- A full-scale, integrated tantalum separation circuit is
progressing to construction phase, with long lead items ordered and
construction scheduled to complete in Q2 2023. First production of
tantalum concentrate is expected by Q3 2023.
Anthony Viljoen (CEO) commented:
"We are excited to see our lithium product development programme
progress on three fronts, namely updating the Mineral Resource
Estimate, commencement of lithium pilot scale metallurgical
testing, and taking the first steps to explore commercial
engagements for lithium petalite concentrate offtake.
"The excellent laboratory test result of a high-grade, ultra-low
iron petalite gives us the confidence to advance to the pilot phase
of our lithium product development programme. We look forward to
establishing production of lithium petalite concentrate and
initiating testing with potential offtakers in the glassware and
ceramics market, for whom petalite is a key raw material, as well
as with producers of lithium hydroxide and lithium carbonate for
the battery market.
"In addition to lithium, the Company is moving ahead with the
construction of a tantalum separation circuit, which will be
integrated with the existing tin concentrator plant. The new
circuit will magnetically separate tantalum minerals from the
existing tin concentrate stream into a second saleable
concentrate.
"The Company is fully focussed on unlocking early value for its
stakeholders through fast-tracking the development programme
towards production. We believe that the addition of lithium and
tantalum by-products will confirm the Company as a globally
significant, high-margin producer of technology metals.
"Lastly, we welcome Nicholas Rathjen into the role of Head of
Business and Commercial Development at AfriTin. Nicholas will focus
on advancing the commercial aspects of our lithium strategy as we
progress towards becoming a fully-fledged lithium producer."
Lithium Metallurgical Testing
The results of the first phase test work of laboratory
metallurgical test work for the beneficiation of lithium bearing
mineral petalite was announced on 24 May 2022. Geolabs Global, an
independent test facility in South Africa, produced a high-grade,
ultra-low iron petalite concentrate at 4.34% Li(2) O, with low
contaminants levels of 0.03% Fe(2) O(3) and 0.93% alkalis (Na(2) O
+ K(2) O), using a process that pre-concentrates petalite through
dense medium separation ("DMS"), followed by upgrading to a
higher-grade petalite concentrate using milling and flotation.
These qualities are typical of petalite concentrates used as
lithium feedstock in the premium glass and ceramics industry which
requires a high lithia to iron ratio. The Company also expects the
concentrate to be suitable for conversion to battery-grade lithium
carbonate or hydroxide. Laboratory flotation test work continues at
ANZAPLAN (Germany) with aim the of optimising flotation performance
and testing alternative reagent regimes.
In addition, laboratory test work for the production of lithium
hydroxide from the Uis petalite concentrate has been initiated at
Nagrom one of Australia's leading mineral processing companies,
with results expected in Q3 2023 . Lithium hydroxide serves as a
key raw material for the manufacturing of lithium-ion
batteries.
Larger, pilot scale metallurgical testing has commenced, which
involves the processing of bulk samples ranging from 1 to 100
tonnes of mineralised material. By scaling up the test work the
Company intends to achieve the following improvements:
-- Increase the confidence of the lithium beneficiation parameters and process flow design;
-- Improve variability modelling for the mineralised material
and its beneficiation characteristics;
-- Generate enough concentrate to initiate downstream test work with potential offtakers.
The pilot scale testing programme includes the following work
streams in progress:
-- DMS test work on a large bulk ore sample at Bond Equipment (South Africa);
-- Pilot scale milling and flotation test work at Nagrom (Australia);
-- Hyperspectral ore sorting test work with Steinert (Germany)
and Tomra (Germany) to investigate alternative or supplementary
methods of petalite pre-concentration. The hyperspectral ore
sorting test work runs in parallel to x-ray transmission ore
sorting test work for tin.
The results of the second phase of metallurgical test work are
expected during Q1 2023 and will inform the process flow design
("PFD") of the full-scale, integrated lithium beneficiation circuit
at the current Uis Mine processing plant. A preliminary process
flow design for an integrated lithium, tin and tantalum processing
facility is presented in Figure 2.
Early-stage metallurgical test work has also been initiated on
mineralised material from ML133 to establish the lithium
beneficiation potential of these pegmatites.
Lithium Pilot Plant
As part of the pilot phase of metallurgical testing the Company
has set out to construct a lithium pilot plant adjacent to the
current tin processing plant of the Uis Mine on the licence ML134.
Basic engineering design for a lithium pilot plant has been
completed and long lead items have been ordered. The project has
now entered the construction phase with commissioning projected for
Q2 2023.
The pilot plant comprises a crushing and screening section,
followed by a DMS and gravity separation circuit, and will be built
at a total capital cost of US$5 million. A milling and flotation
section for petalite may be added as the next stage of the pilot
plant, although pilot test campaigns for flotation will first be
conducted at off-site testing facilities. The commercial viability
of lithium petalite extraction via DMS technology is sufficiently
well established to warrant its inclusion in this stage of the
pilot plant, with the intention of fast-tracking its production and
marketing.
The lithium pilot plant is intended to process bulk sample
discard material from the current tin processing plant and
run-of-mine ore from the current mining pit, as well as mineralised
material from ML133 and ML129. The plant will have a processing
capacity of approximately 20 tph. Pilot campaigns will test various
processing configurations, with the aim of refining the process
flow design. It is also intended that the pilot plant will produce
lithium concentrate, both for further offtake testing and
development.
Tantalum By-Product Development
The results of the laboratory metallurgical test work for
tantalum were announced on 18 November 2021. Tantalum bearing
columbite-group minerals was separated from the tin bearing
cassiterite using dry electromagnetic separation, producing a
concentrate containing 24% Ta(2) O(5) . As a result of this
successful test, a tantalum separation will be constructed as an
integrated circuit to the existing tin concentrating plant. Basic
engineering has been completed and long lead items have been
ordered. Commissioning of the circuit is scheduled for Q2 2023,
with first tantalum product is expected in Q3 2023.
The tantalum separation circuit comprises a dryer, vibrating
screen, and over-belt electromagnetic separators. The total
estimated capital cost of the circuit is US$1 million. The circuit
will be fed with concentrate exiting the wet concentration
circuits. The moist concentrate will be dried, classified, and each
size fraction treated by a separate magnetic separator, after which
the non-magnetic fractions will be combined into a tin concentrate,
whereas the magnetic fractions (excluding the low-intensity
iron-rich fraction) will be combined into a saleable tantalum
concentrate.
Lithium & Tantalum Mineral Resources
The Company owns three mining licences with lithium occurrences:
ML134, ML129 and ML133 (Figure 1). The lithium occurs in pegmatites
that are also enriched in tin and tantalum. ML134 holds the
Company's flagship asset, the Uis Mine which includes an inferred
JORC (2012) compliant lithium resource of 450,000 tonnes of Li(2) O
at the V1/V2 pegmatite. An infill drilling programme of 7,600 m
over this pegmatite has been concluded with the aim of increasing
the Mineral Resource Estimate ("MRE") classification for the
lithium resource to the indicated and measured categories. The
final assay results are expected in December 2022. An updated MRE
for lithium and tantalum is expected during Q1 2023.
ML134 contains an additional 14 historically mined pegmatites
along a 7 km strike, where exploration work to date has
demonstrated that the mineralogy of all these pegmatites is similar
to the V1/V2 pegmatite. This substantiates historical mining
practices which sourced material from all these pegmatites and
processed the material through a single plant. These pegmatites
occur within 4 km of the current Uis processing plant. Exploration
drilling is planned to continue over these pegmatite bodies with
the goal of expanding the lithium, tin and tantalum mineral
resource estimates on this licence.
Lithium mineralisation has also been reported on the proximal
ML129 and ML133 licences (announced on 2 March 2023 and 24 November
2022 respectively) and geological sampling confirms the presence of
lithium mineralisation over more than 70 pegmatites. The main
lithium bearing mineral on ML134 and ML133 has been identified as
petalite. On ML129, however, surface sampling has identified the
presence of spodumene, whose distribution will be further
investigated during future exploration drilling programmes.
Appointment of Head of Business and Commercial Development
The Company is pleased to announce the appointment of Nicholas
Rathjen as Head of Business and Commercial Development. He will
focus on advancing the commercial aspects of our lithium and
tantalum strategy. Nicholas brings a strong commercial capability
having led early-stage lithium projects through development,
definitive feasibility studies, execution of offtake agreements
with global counter parties through to execution of commercial
transactions. His most recent role was head of corporate
development at Prospect Resources (ASX:PSC), where he led the
strategic process to advance the Arcadia Project, featuring
petalite and spodumene, which culminated in the sale of this
significant asset to leading new energy company, Huayou Cobalt, for
US$422 million.
Figures
Figure 1 : AfriTin's Uis Mine and mineral licence locality map
showing the position of ML134, ML129 and ML133.
Figure 2 : Simplified process flow design for an integrated
lithium, tin and tantalum processing plant (subject to further
process flow optimisation). The parts of the process flow design
enclosed by the red dashed lines indicate possible future additions
to the processing plant.
Glossary of abbreviations
DMS Dense medium separation
ILiA International Tin Association
------------------------------------------------
km Kilometre
------------------------------------------------
Li Symbol for lithium
------------------------------------------------
Li -> Li (2) O Metal to metal-oxide conversion factor of 2.153
------------------------------------------------
Li (2) O Lithium oxide
------------------------------------------------
m Metre
------------------------------------------------
MRE Mineral Resource Estimate
------------------------------------------------
PPM Parts per million
------------------------------------------------
Sn Symbol for tin
------------------------------------------------
Ta Symbol for tantalum
------------------------------------------------
tpa Tonnes per annum
------------------------------------------------
tph Tonnes per hour
------------------------------------------------
Glossary of Technical Terms
Dense Medium Separation An ore beneficiation method in which minerals of relatively high or low specific gravity
are
separated from gangue using a hydro cyclone and a dense medium.
Pegmatite An igneous rock typically of granitic composition, which is distinguished from other
igneous
rocks by the extremely coarse and systematically variable size of its crystals, or by an
abundance
of crystals with skeletal, graphic, or other strongly directional growth habits, or by a
prominent
spatial zonation of mineral assemblages, including monomineralic zones
--------------------------------------------------------------------------------------------
Petalite A lithium aluminium phyllosilicate mineral LiAlSi(4) O(10) , occurring in lithium-bearing
pegmatites, often with other lithium minerals such as spodumene and lepidolite.
--------------------------------------------------------------------------------------------
AfriTin Mining Limited +27 (11) 268 6555
Anthony Viljoen, CEO
+44 (0) 207 220
Nominated Adviser 1666
WH Ireland Limited
Katy Mitchell
Corporate Advisor and Joint Broker
H&P Advisory Limited
Andrew Chubb
Jay Ashfield +44 (0) 20 7907
Nilesh Patel 8500
Stifel Nicolaus Europe Limited
Ashton Clanfield
Callum Stewart +44 (0) 20 7710
Varun Talwar 7600
Tavistock Financial PR (United +44 (0) 207 920
Kingdom) 3150
Emily Moss
Catherine Drummond
Adam Baynes
About AfriTin Mining Limited
Notes to Editors
AfriTin Mining Limited is a London-listed technology metals
mining company with a vision to create a portfolio of globally
significant, conflict-free, producing and exploration 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 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.
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