Alphamin Resources Corp. (AFM:TSXV, “Alphamin”, or the “Company”)
wishes to highlight some of the key technical results of its newly
filed updated NI 43-101 technical report for the Bisie Tin mine
located in the Democratic Republic of Congo. The results
include an improved Life of Mine profile and changes in Mineral
Reserves and Resources.
Updated Mineral Resources:
Mineral Resources were updated as at 30 June
2019. The previous Mineral Resource estimate was as of 9 May 2016.
The table below summarises the changes in Mineral Resources for the
Mpama North orebody.
Changes in Mineral Resource
at 0.50% Sn Cut-Off Grade, 30 June 2019
Classification |
Quantity (Mt) |
Grade (%) |
Tin Content (kt) |
2016 |
2019 |
2016 |
2019 |
2016 |
2019 |
Measured Resources |
0.46 |
0.33 |
4.31 |
4.75 |
19.6 |
15.6 |
Indicated Resources |
4.14 |
3.99 |
4.55 |
4.59 |
188.4 |
183.4 |
Inferred Resources |
0.54 |
0.48 |
4.25 |
4.57 |
22.8 |
21.8 |
Total Mineral Resources |
5.14 |
4.80 |
4.50 |
4.60 |
230.8 |
220.8 |
Percentage change |
-6.6% |
2.3% |
-4.3% |
- All tabulated data has been rounded and as a result minor
computational errors may occur.
- Mineral Resources, which are not Mineral Reserves, have no
demonstrated economic viability.
- Mineral Resources are reported inclusive of Mineral
Reserves.
- Alphamin has an 80.75 percent interest in ABM. The Gross
Mineral Resource for the Project is reported.
- 2019 figures reflect depletion by mining from mine surveys as
at 30 June 2019 and an estimate of the extent of artisanal mining
to 725 RL.
The decrease of 10kt in contained tin is
attributable as to 2.4t from depletion through mining activities by
30 June 2019 and 7.7t following a revised interpretation of the
artisanal mining base. No other changes have been made to the
Mineral Resource, no exploration data has been added to the
database and cut-off grades have remained the same.
Updated Mineral Reserves:
Mineral Reserves were updated as at 31 December
2019 to take account of the revised Life of Mine (LOM) plan
following a change in mining method from the previous Sub-Level
Caving (SLC) mining method to Open Stoping with Hydraulic Backfill
(LHS). The decision to transition from SLC to the LHS mining method
was made to reduce safety and technical risks associated with SLC
in the underground environment encountered at Mpama North.
The previous Mineral Reserve estimate was as of
6 February 2017 and utilized the updated Front-End Engineering
Design (FEED) and Control Budget Estimate (CBE) to declare reserves
according to a SLC mining method.
The table below summarises the changes in
Mineral Reserves for the Mpama North orebody.
Changes in Mineral Reserves, 31 December
2019
Classification |
Quantity (Mt) |
Grade (%) |
Tin Content (kt) |
2017 |
2019 |
2017 |
2019 |
2017 |
2019 |
Proven Reserves |
0.38 |
0.05 |
4.17 |
3.77 |
15.9 |
1.9 |
Probable Reserves |
4.29 |
3.28 |
3.53 |
4.01 |
151.4 |
131.5 |
Total Mineral Reserve |
4.67 |
3.33 |
3.58 |
4.01 |
167.3 |
133.4 |
Percentage change |
-28.7% |
11.8% |
-20.3% |
- Computational errors due to rounding are not considered
significant.
- The Mineral Reserves are reported with appropriate modifying
factors of dilution and recovery.
- The Mineral Reserves are reported at the head grade and at
delivery to Plant.
- Although stated separately, the Mineral Resources are inclusive
of the Mineral Reserves.
- No Inferred Mineral Resources have been included in the Mineral
Reserve estimate.
- The input studies are to the prescribed level of accuracy.
- Reserve cut-off grade for 2017 Reserves was 1.4% Sn while for
2019 Reserves is 1.6% Sn
The LHS mining method has lower levels of
dilution than the former SLC mining method, which positively
impacts mined grade and reduces waste tonnes, but requires more
pillar support than SLC and thus has a lower extraction rate. In
addition, a higher cut-off grade of 1.6% Sn was used in the updated
Mineral Reserves compared to 1.4% Sn in the 6 February 2017
estimate.
Although the contained tin has decreased with
this update by 20.3% or 33.9kt Sn, it is accompanied by an absolute
increase in tin grade of 0.42% Sn (or 11.8% relative increase), in
keeping with the optimized Life of Mine and new mining method. Of
the 33.9kt Sn contained loss, more than a quarter or 9.1kt Sn is
associated with depletion from mining activities to 31 December
2019 and the remaining 24.8kt Sn is attributable to the new mining
method and layout which requires more pillar support.
Optimised Life of Mine (LOM)
plan:
The Life of Mine plan was optimized as at 31
December 2019. Alphamin appointed Sound Mining Solutions (“SMS”) to
conduct this optimization Life of Mine plan which encompassed the
transition to LHS.
The table below summarises the changes in the
Life of Mine profile.
Changes in LOM plan as at 31 December
2019, including production to date
2017 LoM Mine schedule |
|
TOTAL |
Y1 |
Y2 |
Y3 |
Y4 |
Y5 |
Y6 |
Y7 |
Y8 |
Y9 |
Y10 |
Y11 |
Y12 |
Y13 |
Y14 |
Tonnes ROM kt |
4,672.6 |
62.6 |
289.1 |
404.7 |
388.2 |
394.4 |
397.4 |
386.3 |
370.1 |
373.9 |
363.9 |
366.9 |
360.7 |
343.4 |
171.1 |
Grade Sn % |
3.59 |
2.39 |
4.38 |
3.63 |
3.22 |
2.91 |
2.92 |
3.73 |
3.04 |
2.95 |
3.25 |
4.31 |
5.61 |
3.53 |
4.00 |
Sn contained kt |
168.0 |
1.5 |
12.7 |
14.7 |
12.5 |
11.5 |
11.6 |
14.4 |
11.2 |
11.0 |
11.8 |
15.8 |
20.2 |
12.1 |
6.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 LoM Mine schedule |
|
TOTAL |
Actual |
Y2 |
Y3 |
Y4 |
Y5 |
Y6 |
Y7 |
Y8 |
Y9 |
Y10 |
Y11 |
Y12 |
Y13 |
Y14 |
Tonnes ROM kt |
4,026.9 |
172.0 |
332.8 |
385.0 |
393.5 |
377.3 |
362.2 |
386.6 |
339.8 |
361.8 |
307.8 |
250.8 |
236.8 |
85.3 |
35.1 |
Grade Sn % |
4.06 |
5.30 |
4.06 |
4.14 |
4.21 |
4.23 |
3.96 |
4.47 |
3.68 |
4.89 |
2.67 |
2.59 |
2.99 |
6.56 |
8.91 |
Sn contained kt |
163.3 |
9.1 |
13.5 |
15.9 |
16.6 |
15.9 |
14.3 |
17.3 |
12.5 |
17.7 |
8.2 |
6.5 |
7.1 |
5.6 |
3.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative difference Sn kt |
7.6 |
8.5 |
9.7 |
13.8 |
18.2 |
21.0 |
23.8 |
25.1 |
31.7 |
28.1 |
18.8 |
5.6 |
-0.9 |
-4.6 |
Year 1 actual mine production is included in the
2019 LOM schedule as these were not conducted on a SLC mining
method basis.
The optimized 2019 LOM schedule includes some
Inferred Resources, which total 13.6% of the 2019 LOM schedule and
less than half of these are scheduled in the first 8 years. The
2017 LOM schedule does not include any Inferred Resources.
The optimized 2019 LOM schedule delivers
cumulatively 28.1kt more tin contained in an equivalent Run of Mine
(ROM) volume to the plant in the first 10 years compared to the
previous LOM schedule. This will improve cash flows during these
first 10 years. Conversely, the optimized 2019 LOM profile has a
longer ‘tail’ and lower volumes in the final years than the
previous LOM schedule.
Alphamin is planning an infill resource drilling
campaign during 2020 at its Mpama South prospect, located
approximately 1.5km south of the Mpama North mining complex. As
mining extends deeper at the current Mpama North orebody, an
underground drilling campaign will likely be initiated during 2021
in order to pursue an extension of the current declared
resources.
Anticipated Effect of the new LOM
plan:
Management anticipates that these changes to the
Mineral Resources, Mineral Reserves and optimised Life of Mine plan
will allow for higher mined head grades, less mined waste, improved
cashflows during the initial 10 years, a safer and more appropriate
working environment given the ground conditions encountered and a
small reduction in total contained tin mined over the life of the
Mpama North orebody.
Qualified Person
Mr. Vaughn Duke Pr.Eng. PMP, MBA, B.Sc. Mining
Engineering (Hons.), is a qualified person (QP) under NI 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, an independent technical
consultant to the Company.
FOR MORE INFORMATION, PLEASE
CONTACT:
Maritz
Smith
CEO
Alphamin Resources
Corp.
Tel: +230 269 4166E-mail: msmith@alphaminresources.com
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 future drilling
activities and plans to extend life of mine. 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,
reserve and life of mine estimates, uncertainties regarding
estimates of the expected mined tin grades, processing plant
performance and recoveries, events causing actual operating
expenditure to be different to that forecasted, 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, uncertainties with
respect to optimization opportunities for the Project, 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.
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