Alphamin announces updated DFS
Tin explorer, Alphamin Resources Corp.(TSX-V:AFM), has announced an updated feasibility study (DFS) for its Bisie tin project in North Kivu, Democratic Republic of Congo, to reflect an increase in Mineral Resources at the site.
In May this year the company reported a 34% increase in Probable Mineral reserves to 152,768 tonnes of contained tin (3.52 Mt of ore @ 4.34% Sn). Adjusting for this change and improved economic outlook relative to the previous DFS, released in February, has resulted in a 76% rise in NPV to US$262.7 million at an 8% discount rate. The cash cost of operations and sales has risen by 5.7% to US$8,935 per tonne of tin and projected capital expenditure has also increased 4.2% to US$124.2 M.
The proposed underground mine is now expected to produce 10,750 t of tin-in-concentrate annually over a 12 year mine life with construction expected to commence in Q1 2017 and first production targeted by Q3 2018. Development of project will bring jobs to the area with 700 people employed in construction of the mine with 450 people employed locally.
Alphamin's Chief Executive Officer, Boris Kamstra, said: "The 34% increase in the Indicated Mineral Resources announced on 11 May 2016 and improved tin price outlook has enhanced the forecast economic performance indicators for Bisie significantly. The Project is based on proven mining and tin recovery methods, which should make it straightforward to operate, with low unit tin production costs and significant growth opportunities."