TIDMATM
RNS Number : 4458H
AfriTin Mining Ltd
06 April 2022
6 April 2022
AfriTin Mining Limited
("AfriTin" or the "Company")
AfriTin Mining Five Year Growth Strategy
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 release of its five-year growth
strategy. The Company aims to enlarge its footprint in Namibia by
expanding existing operations and adding mining locations both in
country and across Africa. In addition, revenue streams for
multiple technology metals concentrates will be developed,
expanding the current tin production to include lithium, tantalum
and tungsten.
Link to full pdf version with images:
https://afritinmining.com/afritin-mining-five-year-growth-strategy/
Investor Conference Call
AfriTin Mining will be hosting a live investor presentation via
the Investor Meet Company platform on Thursday, 7 April, at 11:00am
CAT/10:00am BST. The presentation is open to all existing and
potential shareholders. Questions can be submitted pre-event via
the Investor Meet Company dashboard up until 11:00am CAT/10:00am
BST the day of the meeting, or at any time during the
presentation.
Investors can sign up to Investor Meet Company for free and add
the AfriTin Mining Meet via:
https://www.investormeetcompany.com/afritin-mining-limited/register-investor
Highlights:
-- Uis Mine (Mining Licence ML 134):
o Current mining operation at Uis Mine is producing 850 tpa of
tin concentrate;
o Continued e xpansion of current operation aims to increase tin
concentrate production up to 2,800 tpa; in addition, lithium
concentrate production of 60,000 tpa and tantalum concentrate
production of 45 tpa will commence ;
o Phase 2 feasibility studies for larger-scale 10 Mtpa ROM
operation underway;
o Exploration drilling campaign in progress, with the aim of
expanding the existing JORC (2012) tin mineral resource from 71.54
Mt to a figure of 200 Mt of resource containing tin, lithium and
tantalum;
-- B1/C1 (Mining Licence ML 129): 15km from Uis
o Exploration programme in progress to confirm historical tin
and tantalum resource, and investigate recent spodumene (lithium)
discovery (announced 2 March 2022); and
-- Brandberg West (Exploration Licence EPL 5445): 107km from Uis
o Aggressive exploration programme underway at the site of the
historic tin and tungsten mining operation, aiming to confirm the
historical drilling database with a view to fast-tracking
production.
Anthony Viljoen (CEO) commented:
"I am pleased to publish our ambitions and pathway to becoming a
multi-tech metal producer over the next five years. AfriTin has
proven it is already part of a small and unique group of global tin
producers. What enhances our ambitions and the achievable future
strategy is the underexplored lithium potential combined with
multiple historic open pit tin mines close to our Uis mine. We look
forward to bringing these exciting deposits into production and
leveraging the knowledge gained from successfully building a new
mine at Uis."
Uis Mine (Mining Licence ML 134)
The Uis Mine is the site of a historic tin mine operated by
Iscor between 1958 and 1991. AfriTin re-established production of
tin concentrate in 2019. The operation is currently producing over
490 tpa of tin metal from 800 tpa of tin concentrate. The Company
announced a maiden JORC (2012) compliant mineral resource over the
V1/V2 pegmatite in 2019. Twenty-six exploration holes were drilled,
which validated the 141 historical holes over the V1/V2 orebody,
the latter comprising only two of the sixteen historically mined
pegmatites at Uis. The V1/V2 ore body contained a maiden JORC
(2012) compliant resource of 71.54 million tonnes of resource,
containing 96k tonnes of tin metal (Sn) in combined measured,
indicated and inferred categories, as well as 450k tonnes of
lithium oxide (Li(2) O) metal (1.1 Mt LCE), and 6,000 tonnes of
tantalum metal (Ta), both in the inferred category (announced 6
September 2019).
An exploration drilling programme is currently underway with the
aim of expanding the mineral resource for tin over the fourteen
additional, historically mined pegmatites, all of which occur
within a 5 km radius of the current processing plant. The Company
has set a mineral resource target of 200 Mt to be delineated within
the next 5 years.
The substantial mineral resource potential allows the Company to
consider economies of scale. AfriTin has defined an operational
strategy that will expand the throughput and product outcomes of
the Uis Mine, from two parallel work streams:
-- The completion of a Feasibility Study and the construction of
a larger Phase 2 10 Mtpa ROM operation which simultaneously
exploits multiple pegmatites; and
-- Modular expansion of the current Phase 1 mining operation to
enhance cash flow at defined project delivery points and continue
de-risking the Phase 2 Project
The expansion of the current mining operation will leverage the
existing water and power infrastructure - 72% of purchased grid
electricity is sourced from renewable energy sources, and this is
adequate to increase tin concentrate production by between 2 and 4
times. Expansion will also enable a lithium concentrate production
of up to 60,000 tpa (6,000 tpa contained LCE), together with a
tantalum concentrate production of 45 tpa. Financial modelling by
the Company indicates that this growth will potentially increase
revenues from approximately US$20 million pa for the current
operation, to more than US$100 million pa. Financial modelling by
the Company also indicates a potential NPV in excess of
US$500million and an IRR of 130% for the post-Phase 1 expansion,
assuming a 70-year life-of-mine at a discount rate of 8.3%,
including sunk capital to date.
Defined project deliverables include:
-- Crushing Circuit Expansion: Processing plant throughput
expansion to increase tin concentrate production to 1,500 tpa (up
76% from current values). This project is currently under
construction with commissioning expected in Q4 2022;
-- Ore Sorting: This facility will increase tin concentrate
production by increasing the current feed grade by a factor of 2 -
4x. The Company aims to achieve this by using x-ray transmission
(XRT) ore sorting as a dry pre-concentration method. An XRT ore
sorting test plant is planned for implementation during 2022 with
full-scale production expected in 2023; and
-- By-Product Circuit: Additional processing plant circuits to
produce both lithium concentrate (petalite mineral) and tantalum
concentrate. Test plants for lithium and tantalum are planned for
implementation during 2022.
Feasibility studies for a larger scale Phase 2 mining and
processing facility are also underway. This operation is envisioned
as a 10 Mtpa ROM operation producing approximately 16,000 tpa of
tin concentrate, 480,000 tpa of lithium concentrate (48,000 tpa
contained LCE), and 320 tpa of tantalum concentrate. It is expected
that Phase 2 will require upscaled electricity and water
infrastructure by tapping into existing electrical grid power and
utilizing desalinated water infrastructure close to the current
operation.
The Company has commenced the formative stages of a feasibility
study, with an initial Preliminary Economic Assessment using live
feed data from the current operations, and due in Q2 2022.
B1/C1 (Mining Licence ML 129)
The positive identification of spodumene, a primary lithium
mineral within the B1 and C1 pegmatites (announced 2 March 2022),
together with known tin and tantalum mineralisation, highlights the
prospectivity of the ML129 mining license. The Company intends to
progress the initial exploration programme here, with the aim of
confirming and expanding the historical drill hole database, and
potentially establishing a JORC (2012) compliant mineral resource
estimate.
Brandberg West (Exploration Licence EPL 5445)
Brandberg West is a historic open pit tin and tungsten mine,
operated by Gold Fields Limited between 1946 and the 1980's.
Located 107 km from the Uis Mine, Brandberg West is a polymetallic
deposit, with primary tin and tungsten mineralisation and secondary
copper mineralisation. The deposit features mineralised quartz vein
sets hosted in metasediments, and is expected to be well suited for
pre-concentration through modern mechanised ore sorting, prior to
concentration via gravity separation methods.
The Company intends initiating an exploration drilling programme
as a follow-on from the Company's recent exploration mapping and
sampling programme, with the aim of establishing a JORC (2012)
compliant mineral resource estimate. In addition, the company plans
to undertake a metallurgical test work programme to investigate
potential ore processing methods.
Financing
AfriTin currently generates US$800k a month in operating cash
flow from its Uis Mine and is fully financed to complete the
commissioning of its Phase 1 expansion and testwork programme for
the 2022 calendar year. Project expansion is being financed by a
project finance facility through its banking partner Standard Bank
Namibia. Thereafter, the Company intends funding its strategic
development activities at Uis Mine, at B1/C1 and at Brandberg West,
mainly from incremental Phase 1 cash flows and through appropriate
financing options on a project by project basis.
ESG
AfriTin is committed to the sustainable development of its
operations and the growth of its business. The leadership team
places great emphasis on creating value for the wider community,
our shareholders, investors, and other stakeholders. They have
established an environmental, social and governance (ESG) system
which has been implemented at all levels of the Company, and aligns
with international standards. Their ESG efforts also accord with
the strategy of building a new technology metals province in
Namibia, as well as elsewhere in Africa, and which will produce the
materials essential to global aspirations of reducing carbon
emissions. The Company plans to present its ESG Strategy in H2
2022.
Glossary of abbreviations
EBITDA Earnings Before Interest, Taxes, Depreciation and Amortization
FY AfriTin Mining Financial Year (March - Feb)
km kilometres
LCE Lithium Carbonate Equivalent
Li Symbol for Lithium
Li(2) O Lithium oxide
Li -> Li(2) O Metal to metal-oxide conversion factor of 2.153
Li(2) O -> Li(2) CO(3) Metal-oxide to lithium carbonate equivalent conversion factor of 2.473
Tpa Tonnes per annum
Mtpa Million Tonnes per annum
Q Quater
Sn Tin
SW South-west
Ta Tantalum
W Tungsten
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 16,000 tpa of tin concentrate ,
480,000 tpa lithium concentrate and 320 tpa of tantalum 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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