REG - AfriTin Mining Ltd - Quarterly Production Update

Andrada MiningAnnouncement

15/12/2021 07:00

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RNS Number : 6630V  AfriTin Mining Ltd  15 December 2021

15 December 2021

AfriTin Mining Limited

 ("AfriTin" or the "Company")

Quarterly Production Update

AfriTin Mining Limited (AIM: ATM), an African tech-metals mining company with
a portfolio of mining and exploration assets in Namibia containing tin,
lithium and tantalum, including its flagship asset, the Uis Tin Mine ("Uis"),
is pleased to provide a production update for the three-month period ended 30
November 2021 (Q3 of the financial year).

 

Highlights:

·      Production of tin increased by 20% quarter-on-quarter ("QoQ") to
136 tonnes;

·      Ore tonnes processed increased by 17% QoQ to 149k tonnes;

·      All-in sustaining cost ("AISC") for the Uis operation improved by
22% QoQ to c. US$23k;

·      Construction of Uis Phase 1 Expansion Project is on track and on
budget; and

·      Workstreams for an enhanced, large-scale Uis Phase 2 expansion
have commenced, which include exploration drilling targeting resource
expansion to 150 million tonnes of ore and metallurgical test work and
piloting for lithium and tantalum by-products.

 

Anthony Viljoen (CEO) commented:

"We are pleased to present a solid set of operational results that exceed our
internal production targets. Sustained improvements in operational
efficiencies have resulted in substantial increases in ore processed and
concentrate produced, and testifies to the capacity and resilience of the
AfriTin technical team.

These results provide us with the momentum to progress rapidly with the
expansion of our Phase 1 plant at Uis, and serve as proof of concept for the
planned, large-scale Phase 2 facility.  By leveraging economies of scale and
the multi-commodity potential of Uis, we are confident of achieving our
ultimate aim of establishing a tier-one tech-metal mining and processing
operation."

 

Operational review:

During the quarter under review the Company has delivered a strong operating
performance and has made considerable progress towards its goal of progressing
the expansion of Uis to 10,000 tonnes of tin concentrate and 350,000 tonnes of
lithium concentrate per year in its Phase 2 expansion.

 

Uis produced 220 tonnes of tin concentrate, containing 136 tonnes of tin
metal. The latter represents a 20% improvement on the previous quarter,
exceeding the nameplate production target of 108 tonnes of tin metal by 26%.

A 17% increase in plant throughput, totalling 148,700 tonnes of ore for the
quarter, was supported by continuous improvement initiatives, which focussed
on enhancing plant availability, utilisation, processing rate and tin
recovery. Plant availability increased to 88% and plant processing rate to 94
tonnes per hour. Tin recovery for Q3 (61%) remained above the nameplate target
of 60%.

 

The plant feed grade of 0.150% tin compares favourably with the projected
life-of-mine feed grade of 0.138% tin. The higher feed grade is the result of
natural grade variations in the ore body as modelled in the life-of-mine plan.

 

The enhanced operational efficiencies from the continuous improvement
programme at Uis, resulted in a substantial improvement in operating cost and
AISC (18% and 22% respectively QoQ). The AISC of US$23,290 per tonne of
contained tin compares with the achieved price of US$39,025 per tonne. The
AISC is expected to continue its downward trend driven by the commissioning of
the Phase 1 Expansion Project and further process improvements to be
implemented over the next 6 months, by leveraging fixed costs through
economies of scale and higher efficiencies.

 

Uis Expansion:

The Uis deposit, located in Namibia, was discovered in 1911 and developed into
the largest hard-rock tin mine in the world at the time. Production ended in
1990 as a result of low tin prices.

 

AfriTin is redeveloping the mine in two phases. Phase 1 involves a pilot plant
which is in full operation. Current nameplate production of 720 tonnes of tin
concentrate per annum has been achieved and the plant is profitable on tin
alone. The Phase 1 Expansion Project is projected to increase tin concentrate
production by 67%, is on track and on budget, with all long lead equipment
items already ordered. Detailed design work has been completed, civils
construction has commenced, and steel fabrication is in progress. Construction
and commissioning of the expanded plant is on track to be completed in Q2
2022.

 

Workstreams for an enhanced, large-scale Uis Phase 2 expansion are in
progress. The Phase 2 operation is envisaged to produce 10,000 tonnes of tin
concentrate, 350,000 tonnes of lithium concentrate, and 1,000 tonnes of
tantalum concentrate per annum. Phase 2 workstreams include an exploration
drilling programme announced on 26 October 2021, a by-product development
programme announced on 18 November 2021, and additional studies for upgrading
bulk water and power supply infrastructure.

 

The aim of the exploration drilling programme is to expand the existing
Mineral Resource Estimate (71.5 million tonnes of ore) through confirmation of
the historical resource estimates at Uis. The latter, combined with mapping
data for virgin pegmatite ore bodies, provides the basis for the Company's
resource target of 150 million tonnes. In addition, the drilling programme
will increase the geological confidence for modelling potential lithium and
tantalum by-product elements.

 

The aim of the by-product development programme is to enhance the
beneficiation processes and offtake routes for additional revenue streams
though the sale of separate lithium and tantalum products. The programme
includes a range of off-site metallurgical test work campaigns, as well as
on-site bulk test work and piloting.

 

The installed bulk water and power infrastructure has sufficient capacity to
meet the requirements of the expanded Phase 1 plant. However, Phase 2 will
require infrastructure upgrades. The Company is engaged with the Namibian
state-owned utilities and various private sector entities to explore options
related to bulk water and power supply. Potential solutions include renewable
energy generation and linking up to existing desalinated water supply
infrastructure in the region.

 

The Company will provide regular updates to the market on the progress of
these programmes.

 

Table 1: Quarterly performance of the Uis Phase 1 processing plant during the
2022 financial year.

 Description                        Units                   2022 Financial Year (March 2021 to February 2022)
                                    Q1 Actual                              Q2 Actual              Q3 Actual               Q3 vs Q2

                                    (Mar 2021 - May 2021)                  (Jun 2021- Aug 2021)   (Sep 2021 - Nov 2021)   (% change)
 Plant Availability                 %                       75             78                     88                      13%
 Plant Utilisation                  %                       83             85                     84                      -1%
 Plant Processing Rate              tph                     84             87                     94                      8%
 Ore Processed                      t                       115,751        127,263                148,700                 17%
 Feed Grade                         % tin                   0.167          0.137                  0.150                   10%
 Tin Concentrate                    t                       183            185                    220                     19%
 Tin Contained in Concentrate       t                       114            113                    136                     20%
 Tin Recovery                       %                       59             65                     61                      -6%
 Operating cost for Uis Tin Mine *  US$/t contained tin     24,084         26,625                 21,834                  -18%
 AISC for Uis Tin Mine **           US$/t contained tin     28,158         29,931                 23,290                  -22%
 Tin Price Achieved                 US$/t contained tin     30,749         34,235                 39,025                  14%

* Operating Cost (excludes sustaining capital expenditure associated with
developing and maintaining the Uis operation; unaudited)

** AISC = All-In Sustaining Cost (incorporates all costs related to sustaining
production and in particular recognising the sustaining capital expenditure
associated with developing and maintaining the Uis operation, including
pre-stripping waste mining costs; unaudited)

 

 

 

 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                     +44 (0) 20 7907 8500

 Andrew Chubb

 Jay Ashfield

 Nilesh Patel
 Stifel Nicolaus Europe Limited           +44 (0) 20 7710 7600

 Ashton Clanfield

 Callum Stewart

 Tavistock Financial PR (United Kingdom)  +44 (0) 207 920 3150
 Jos Simson

 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 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
tech-metal assets in Africa.

 

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