REG - AfriTin Mining Ltd - Uis Phase 2 Expansion: PEA Results

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26/04/2022 07:16

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RNS Number : 3383J  AfriTin Mining Ltd  26 April 2022

26 April 2022

AfriTin Mining Limited

 ("AfriTin" or the "Company")

Uis Phase 2 Expansion: Preliminary Economic Assessment (PEA) Results

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 results of its internally produced Preliminary Economic
Assessment ("PEA") for the Phase 2 expansion of the Company's flagship
polymetallic asset, the Uis Mine ("Uis").

 

Link to full pdf version with images:
https://afritinmining.com/uis-phase-2-expansion-preliminary-economic-assessment-pea-results/
(https://afritinmining.com/uis-phase-2-expansion-preliminary-economic-assessment-pea-results/)

 

Highlights:

▪      After-tax NPV8 of US$2.1 billion, and IRR of 75%*;

▪      Significant annual cashflow with rapid payback of 1.5 years from
an open-pit tin, lithium, and tantalum mine*;

▪      Proven profitable Phase 1 Pilot plant significantly de-risks the
execution and process flow design of Phase 2*;

▪      Average production of 10 Mtpa ROM per year with 14-year mine
life and low strip ratio of 1:2.6*;

▪      EBITDA margin of 64%, or US$62/t ROM*; and

▪      Owner's CAPEX of $440m, including a 30% contingency.*.

* subject to the assumptions, qualifications and limitations set out below

 

Anthony Viljoen (CEO) commented:

"I am delighted to present the preliminary economic assessment for Phase 2 at
our flagship Uis asset in Namibia. This PEA shows outstanding economics and
returns for the expansion and allows us to move forward with excitement to a
full bankable feasibility. The fact we have successfully brought phase 1 into
production allows us to significantly de-risk phase 2 from the considerable
learnings in building a new mine. Phase 2 will see AfriTin produce globally
significant volumes of tin, lithium and tantalum which are vital in meeting
the demands of the transition to a new efficient greener technology future."

 

Background to the PEA

 

The historic Uis Mine in Namibia was owned and operated by ISCOR between 1958
and 1991 as a tin mine. AfriTin set out to re-establish the operation in two
phases: Phase 1 is a low capital, cash generating initial production facility,
serving as a pilot for Phase 2, which is planned as a scaled-up version of the
initial phase. Both phases also aim to exploit the tantalum and lithium
by-product potential of the deposit. The Company has successfully established
the tin producing circuits of Phase 1, with the by-product circuits currently
in the design and testing stages. This puts the Company in a position to
proceed with a feasibility study for the ultimate Phase 2, of which the PEA
represents the first step.

 

Summary of Phase 2 Project Economics

 

The salient results of the Base Case of the Phase 2 PEA, including tin,
lithium and tantalum, are presented in Table 1.

 

Table 1: Summary of Economics (Base Case)

 NPV (after tax, 8.0% real WACC)  US$2.10 billion
 IRR (after tax)                  75%
 Life of Mine                     14 years
 Initial CAPEX                    US$440 million
 Payback Period (after tax)       1.5 years
 Annual Gross Revenue             US$880 million
 Annual EBITDA                    US$620 million
 Ore Throughput                   10 million tpa ROM
 AISC per ROM Tonne               US$35/t ROM
 Gross Revenue per ROM Tonne      US$97/t ROM
 EBITDA per ROM Tonne             US$62/t ROM
 EBITDA Margin                    64%

 

Sensitivities

 

The sensitivity of the project economics to commodity prices was tested for
Low and High price scenarios, in addition to the Base Case assumptions.

 

Table 2: Project sensitivity to commodity prices (nominal, 2025 forecast)

 Parameter                    Low              Base Case        High
 Tin Price                    30,000           40,500 *         50,000
 Petalite Price               800              1,150 **         1,600
 Tantalite (Ta(2)O(5)) Price  180,000          240,000 ***      300,000
 NPV (after tax)              US$1.12 billion  US$2.10 billion  US$3.01 billion
 IRR (after tax)              49%              75%              94%

* Bloomberg Consensus Pricing (11 April 2022) - 2025 forecast (nominal)

** Wood MacKenzie February 2022 Quarterly Update - 2025 forecast (nominal)

*** Roskill Tantalum Outlook to 2029, 15(th) Edition - 2025 forecast (nominal)

 

Whilst the Directors believe these assumptions to be reasonable based on
informed forecasts and trends it is nevertheless noted that (i) the valuation
of the Uis project is particularly sensitive to the price of tin - the current
tin price of US$43,949 per tonne is at a historic high; therefore there is no
guarantee that the tin prices quoted here will be achieved; and (ii) not all
the resources which form the basis of the assumptions are part of a JORC
compliant resource update. Further information is provided below.

 

The sensitivity of the Phase 2 project economics was also tested for the
exclusion of by-products, for the following three scenarios:

 

Table 3: Project sensitivity to the exclusion of by-products

 Parameter         Tin Only, No By-Products  Tin, & Lithium By-product      Tin, & Lithium By-product & Tantalum By-product
 Initial CAPEX     US$333 million            US$430 million                 US$440 million
 NPV8 (after tax)  US$610 million            US$1.95 billion                US$2.10 billion
 IRR (after tax)   40%                       72%                            75%

 

Project Development Planning

 

The project development programme for the Uis Phase 2 project consists of the
following planned work streams:

·      Metallurgical test work related to the potential lithium and
tantalum by-products;

·      Exploration drilling with an ambition to expand the
JORC-compliant mineral resource estimate and increase the geological
confidence for by-product elements;

·      Feasibility studies including scoping analysis, trade-off
analysis and refinement to bankability stage; and

·      Board approval for the the construction and commissioning of
Phase 2 mining and processing facilities upon the successful completion of
feasibility  studies and associated project financing.

 

 

 

Metallurgical Test Work

 

The metallurgical and cost performance of the current tin producing operation
provides a definitive input for the tin related aspects of the feasibility
study for Phase 2. However, the Company is conducting a comprehensive test
work programme for the potential lithium and tantalum by-products, and new,
complementary technologies. The test work consists of off-site research and
development by reputable service providers, and on-site bulk test work using
pilot plant facilities.

 

Test work for a lithium product in the form of petalite concentrate is in
progress with FT Geolabs (South Africa), Nagrom (Australia) and Anzaplan
(Germany). In parallel, the Company intends to appoint an EPCM contractor for
the construction and commissioning of a bulk test facility at Uis, to enable
the pilot production of a 4.0% Li(2)O petalite concentrate that could
potentially be sold into both the technical market (glass/ceramics) and the
chemical market (converters to lithium carbonate/hydroxide).

 

Test work for the production of a tantalum concentrate is in progress with
LightDeepEarth (Pty) Ltd (South Africa) and AfriMet Resources AG
(Switzerland). The results of this work will inform the construction of a
potential tantalum separation circuit at Uis.

 

Sensor-based ore sorting has been identified as a concentration technology
with the potential to transform the capacity and cost base of processing
facilities at Uis for tin, tantalum and lithium. Ore sorting can potentially
pre-concentrate dry, coarsely crushed ore by two to four times the run-of-mine
grade. AfriTin is collaborating with Steinert GmbH (Germany) to test and
develop the metallurgical parameters as input to the feasibility study. In
addition, the Company intends to appoint an EPCM contractor for the
construction and commissioning of a bulk test facility at Uis, enabling the
pilot production of both a tin/tantalum and lithium pre-concentrate.

 

Exploration programme

 

An exploration drilling programme is currently underway at Uis with the aim of
expanding the mineral resource for tin over fourteen additional, historically
mined pegmatites, all of which occur within a five km radius of the current
processing plant. Further work is required to achieve a mineral resource
target of 200 Mt of ore, which we believe is possible based on our knowledge
of the area and the historic work already undertaken. The company has planned
and is executing a full exploration drilling requirement of 150,000 m that
will run concurrently with ongoing operations and feasibility studies. The
programme aims to confirm the historical drill hole database for tin over the
additional pegmatites and provide infill drilling data for the expansion of
lithium and tantalum mineral resources.

 

Funding Strategy

 

The development of the Uis Phase 2 project is underpinned by the Company's
technical, financial and managerial capability built up through the operation
of the Uis Phase 1 project. The current Phase 1 operation produces
approximately 850 tpa of tin concentrate, resulting in revenues of
approximately US$20 million pa and an EBITDA of approximately US$10 million
pa.

 

The Company believes that the expansion of Uis Phase 1, as set out in the
announcement of 6 April 2022, can further enhance the cash generating
capability of the Phase 1 operation. Table 4 sets out the EBITDA potential for
the various stages of expansion of Phase 1, as well as for Phase 2.

 

Table 4: Project milestones for Uis and projected EIBTDA impact

 Phase    Milestone                        Potential Commissioning Date  Potential EBITDA (US$ pa)
 Phase 1  Crushing Circuit Expansion       Q4 2022                       US$20 million
          Ore Sorting Implementation       Q4 2023                       US$50 million
          By-product Implementation        Q2 2023                       US$100 million
 Phase 2  Ultimate Phase 2 Implementation   2026                         US$620 million

 

The funding of the Phase 2 project will be determined by the Company and its
Directors in due course but is likely to be derived from operational cash
flows generated from the Phase 1 operation (Table 4), from project debt
financing and/or a strategic equity component.

 

Mineral Resource

 

The mineral resource target for Uis Phase 2 consists of a JORC-compliant
resource estimate of 72.54 Mt (see announcement dated 19 September 2019), the
details of which are set out below; estimates are based on historical drill
hole data (non-JORC-compliant, produced by ISCOR from 1958 to 1991) and
internal estimates based on modelling of extensions to known pegmatites
(non-JORC compliant).

 

A mineral resource estimate (MRE) for the V1/V2 pegmatite orebody has been
reported by CSA Global in accordance with the JORC Code (2012 Edition) (see
Appendix A below and the announcement dated 16 September 2019). The mineral
resource has been reported above a cut-off of 0.05% Sn on 16 September 2019.
Exploration targets for the other pegmatites proximal to V/V2 have been
defined by the Company and are included in Table 4. Combined with the existing
MRE, the total mineral resource target amounts to more than 200 million tonnes
of ore. However, the non-JORC compliant resource and the Company's internal
estimates, which are also not JORC compliant, are still subject to
verification, validation and external review; accordingly, such numbers are
provided for guidance only. There can be no guarantee that the final
JORC-compliant resource estimate will reconcile with these early-stage
calculations.

 

Table 5: Mineral Resource target

 Area                  Commodity         Resource Classification  Classification Ore Tonnes (Mt)*  Grade       Contained Metal (t)
 V1/V2                 Sn                JORC - Measured          21.54                            0.139 %     29 899
                       JORC - Indicated                           13.05                            0.136 %     17 765
                       JORC - Inferred                            36.95                            0.130 %     47 875
                       Subtotal                                   71.54                            0.134%      95 539
                       Ta                JORC - Inferred          71.54                            85 ppm      6 091
                       Li(2)O            JORC - Inferred                                           0.63 %      450 265
 Northern Cluster      Sn                Non-JORC                 34.26                            0.141 %     48 419
                       Ta                Non-JORC                 80 ppm                                       2 740
                       Li(2)O            Non-JORC                 0.50%                                        171 277
 Central Cluster       Sn                Non-JORC                 10.78                            0.142 %     15 277
                       Ta                Non-JORC                 80 ppm                                       863
                       Li(2)O            Non-JORC                 0.50%                                        53 908
 Southern Cluster      Sn                Non-JORC                 37.52                            0.128%      48 065
                       Ta                Non-JORC                 80 ppm                                       3 001
                       Li(2)O            Non-JORC                 0.50%                                        187 593
 Far Southern Cluster  Sn                Non-JORC                 51.85                            0.130%      67 410
                       Ta                Non-JORC                 90 ppm                                       4 667
                       Li                Non-JORC                 0.50%                                        259 267
 TOTAL                 Sn                                         205.95                           0.134%      274 710
                       Ta                81 ppm                                                    17 362
                       Li(2)O            0.54 %                                                    1 122 310

* this is the gross to the project; the net attributable to AfriTin is 85% of
this total.

 

Geology and Mineralisation

 

The mining licence ML 134 is approximately 200 km(2) in size and includes a
large portion of a Sn-Nb-Ta type pegmatite swarm in the Uis area. The
pegmatites are granitic in composition and are homogeneous intrusions without
prominent mineral zonation. Mineralisation in terms of Sn, Ta and Nb is
generally associated with alteration zones known as greisens and saccharoidal
aplitic units. In addition to the Sn and Ta mineralisation within the Uis
swarm, lithium phases have also been identified in the form of lepidolite,
petalite, eucryptite and cookeite. On ML 134 the primary lithium mineral is
petalite.

 

Mining

 

Mining will consist of conventional open pit methods employing low carbon
truck and excavator combinations and is planned to take place over multiple
pegmatite ore bodies from four to five pits concurrently. The total non-JORC
compliant mining reserve (provided for guidance purposes only) is 134 million
tonnes of ore, which could result in mine life of 14 years. The mining plan
features a production rate of 10 Mtpa ROM ore at an average overburden
stripping ratio of 2.6.

 

Metallurgy and Processing

 

An intensive ongoing test work programme in conjunction with the established
Uis Phase 1 processing operations is underway to increase the level of
confidence in the selected testing of processing technologies for production
of saleable tin, tantalum, and lithium concentrates. For the production of tin
the Phase 1 operation serve as a proof-of-concept for the larger scale Phase 2
development.

 

For Phase 2 the beneficiation process may involve dry crushing of the ROM ore
and the use of sensor-based ore sorting once confirmed through test work.
 The pre-concentrates from this process could then be treated through various
wet concentration circuits to produce saleable concentrates.

 

The tin and tantalum minerals could be pre-concentrated by employing x-ray
transmission (XRT) ore sorting and concentrated through dense medium
separation (DMS), gravity separation and magnetic separation. The lithium
mineral petalite could be pre-concentrated through near-infrared (NIR) ore
sorting, concentrated through DMS and cleaned through milling and flotation.

 

The following overall processing plant recoveries have been modelled in the
PEA:

 

Table 6: Overall processing plant recoveries.

 Commodity  Overall Processing Plant Recovery
 Tin        70%
 Lithium*   30%
 Tantalum*  20%

* These by-products are not currently in production; figures based on
metallurgical test work and theoretical process modelling.

 

A zero effluent plant is planned to include dewatering systems for all
concentrate and discard streams to aim for maximum water conservation and
eliminate the need for tailings dams. Dry tailings will be co-disposed with
course plant discard onto a discard dump.

 

Bulk Infrastructure

 

Uis is connected to the main industrial centres by road. Gravel roads are
regularly maintained and are suitable for heavy transport. Imports from South
Africa are by road via Windhoek. The nearest port is Walvis Bay (230 km away).
The intention is that all goods and products will be handled through this
port. The port infrastructure is considered by the Directors to be of a high
standard with capacity for container handling and bulk materials export.

 

The total estimated water supply for ore processing and domestic use for the
project is 1,350,000 m(3) pa. The Directors consider the Erongo desalination
plant between Swakopmund and Henties Bay on the west coast of Namibia to have
sufficient capacity to supply water to the project. An existing pipeline
delivers desalinated water to the Orano Mining facility at Trekkopje, where
offtake is available for supply to Uis by way of a new pump system and
pipeline. The feasibility study for Phase 2 will also investigate alternative
water supply solutions, including a standalone desalination facility at the
coast 110 km away. The Company is employing infrastructure specialist advisory
Bigen to assist with technical and financial studies, including the
exploration of alternative funding and offtake models.

 

A connection to the national power grid is planned for the Uis Project with a
new feeder connected to the southern grid at a NamPower substation located at
Trekkopje, due south of Uis. The estimated future demand for Uis is 40 MVA.
The Phase 2 feasibility study will also explore alternative power
infrastructure solutions, including a standalone renewable energy option, and
alternative funding and offtake models.

 

Product Offtake

 

AfriTin has established an offtake agreement (valid until 2023 with the option
to renew) for tin concentrate with the Thailand Smelting and Refining Company
Ltd (Thaisarco), located in Phuket, Thailand. Thaisarco is one of the main tin
smelting and refining companies outside China. The agreement, in place since
2019, provides for the sale of concentrate from Uis Tin Mining Company (the
operational entity) directly to Thaisarco.

 

AfriTin has an established offtake agreement with AfriMet for all the tantalum
concentrate produced.   The agreement, in place since 2021, provides for the
sale of tantalum concentrate from Uis Tin Mining Company (the operational
entity) directly to AfriMet.

 

Long-term off-take agreements with conversion facilities, as well as sales on
the spot market, will be fully investigated for lithium in the next phase of
study. AfriTin has commenced with initial discussion with potential lithium
chemical conversion companies, as well as various traders. The Company expects
to produce bulk samples for potential offtake partners from its petalite bulk
test facility from Q4 2022. Further updates will be provided in due course.

 

Under steady state conditions the Uis Phase 2 project is projected to produce:

·      15,000 tonnes of tin concentrate per annum (9,000 tonnes of
contained tin per annum)

·      1,000 tonnes of tantalum concentrate per annum (200 tonnes of
contained Ta(2)O(5) per annum)

·      450,000 tonnes of 4% lithium petalite concentrate per annum
(18,000 tonnes of contained Li(2)O, or 45,000 tonnes of contained LCE per
annum)

 

Considering the stage of the feasibility study, these production rates cannot
be guaranteed.

 

Operating Expenditure (OPEX) and Capital Expenditure (CAPEX)

 

The assumptions for operating expenditure and capital expenditure utilised in
the Company's internal PEA are set out below:

 

Table 7:  OPEX table

 Description        Units                       Value (US$)
 Ore mining cost    US$/tonne of ore mined      4.30*
 Waste mining cost  US$/tonne of waste mined    1.30
 Processing cost    US$/tonne of ore processed  7.50
 Mine overheads     US$ per annum               7,200,000
 Selling cost       US$/tonne of ore processed  20.30

* Including rehandling & plant tailings co-disposal costs

 

Table 8: Initial CAPEX Table

 CAPEX Item                               Value (US$)
 Study Costs                              13,000,000
 Exploration                              30,000,000
 Working Capital                          20,000,000
 Mining Engineering and Mine Development  2,500,000 *
 Ore Processing Engineering               6,000,000
 Ore Processing Infrastructure            140,000,000
 Mine Support Infrastructure              30,000,000
 Bulk Electricity Supply                  40,000,000
 Bulk Water Supply                        57,000,000
 Contingency @ 30%                        101,550,000
 Project Total Initial Capital            440,050,000

* Excludes mining equipment, assumes contractor mining

 

ESG Considerations and Credentials

 

AfriTin is committed to developing projects through responsible and
sustainable mining operations that recognise tin, lithium and tantalum mining
as fundamental to shaping the fourth industrial revolution and a green energy
future. With this in mind, AfriTin is taking steps to build its approach to
sustainability by the implementation of a five-year ESG roadmap aimed to
deliver leading industry practise during Phase 2 operations. The Company's
roadmap is aligned with leading international sustainability benchmarks,
including the United Nations Suitability Development Goals, International
Finance Corporation (IFC) Standards, and International Council of Metals and
Mining (ICMM) Principles.

 

AfriTin's current operations in Namibia has established the Company as a
respected employer and corporate citizen. The Directors believe that the Uis
Phase 2 Project will act as catalyst for further economic growth and
employment opportunities both directly and indirectly for the community around
our operation, but also for the region and country. The Project is expected to
be a significant contributor to the Namibian treasury through tax revenue.
Through partnerships with government and civil society, we aim to ensure that
benefits of our operational expansion extend beyond the life of the mine
itself, so that the operations have a positive impact on the natural
environment, climate change, and social capital.

 

AfriTin is committed to developing relationships with our stakeholders built
on open, transparent, and constructive engagement, and securing a strong and
stable social licence to operate.

 

Competent Person

 

The technical data in this announcement has been reviewed by Laurence Robb, a
Non-Executive Director of AfriTin. Laurence Robb (BScHons, MSc, PhD, FGS,
FGSSA, FRSSA) has more than 40 years of industry-related mineral project
development experience. He is registered as a Professional Natural Scientist
with The South African Council for Natural Scientific Professions, and
Chartered Geologist with the Geological Society of London. He was Professor of
Economic Geology and Director of the Economic Geology Research Institute in
the University of the Witwatersrand's School of Geosciences. He is currently
based at Oxford University as a Visiting Professor. He has reviewed the
technical disclosures in this release and consents to the release of the
information contained herein.

 

Forward-Looking Statements

 

This announcement may contain some references to forecasts, estimates,
assumptions and other forward-looking statements. Although the Company
believes that its expectations, estimates and forecast outcomes are based on
reasonable assumptions, it can give no assurance that they will be achieved.
They may be affected by a variety of variables and changes in underlying
assumptions that are subject to risk factors associated with the nature of the
business, which could cause actual results to differ materially from those
expressed herein. All references to dollars ($) and cents in this announcement
are in United States currency, unless otherwise stated. Investors should make
and rely upon their own enquiries before deciding to acquire or deal in the
Company's securities.

 

 

Glossary of abbreviations

 EMP               Environmental management plan
 ESG               Environmental, social and governance
 ESIA              Environmental and social impact assessment
 ICMM              International Council on Mining and Metals
 IRR               Internal rate of return
 JORC              The Australasian Code for Reporting of Exploration Results, Mineral Resources
                   and Ore Reserves
 km                Kilometres
 LCE               Lithium carbonate equivalent
 Li                Symbol for Lithium
 Li → Li(2)O       Metal to metal-oxide conversion factor of 2.153
 Li(2)O            Lithium oxide
 MVA               Megavolt amperes
 Nb                Symbol for Niobium
 NPV               Net present value
 pa                Per annum
 ppm               Parts per million
 ROM               Run-of-mine
 Sn                Symbol for Tin
 Ta                Symbol for Tantalum
 Ta → Ta(2)O(5)    Metal to metal-oxide conversion factor of 1.211
 Ta(2)O(5)         Tantalum pentoxide
 tpa               Tonnes per annum
 WACC              Weighted average cost of capital

 

 

Glossary of Technical Terms

 Indicated Mineral Resource  The part of a Mineral Resource for which quantity, grade, quality, etc., can
                             be estimated with a level of confidence sufficient to allow the appropriate
                             application of technical and economic parameters, to support mine planning and
                             evaluation of economic viability
 Inferred Mineral Resource   The part of a Mineral Resource for which quantity and grade or quality can be
                             estimated on the basis of geological evidence and limited sampling and
                             reasonably assumed, but not verified, geological and grade continuity
 Measured Mineral Resource   The part of a Mineral Resource for which quantity, grade or quality, etc., are
                             well enough established that they can be estimated with confidence sufficient
                             to allow the appropriate application of technical parameters to support
                             production planning and evaluation of economic viability
 Mineral Resources           Mineral Resources are sub-divided, in order of increasing geological
                             confidence, into Inferred, Indicated and Measured categories. An Inferred
                             Mineral Resource has a lower level of confidence than that applied to an
                             Indicated Mineral Resource. An Indicated Mineral Resource has a higher level
                             of confidence than an Inferred Mineral Resource but has a lower level of
                             confidence than a Measured Mineral Resource
 Petalite                    A lithium aluminium phyllosilicate mineral LiAlSi(4)O(10)

 

 

 

 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

 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 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.

 

APPENDIX A

Mineral Resource Estimate for Uis (taken from the announcement of 19 September
2019)

Table 1: AfriTin Mining tin (Sn) Mineral Resource estimate (JORC- 2012) of
the Uis Tin Mine V1 and V2 pegmatites at a cut-off grade of 0.05% Sn.

 Resource Classification  Gross                                     Net Attributable (85%*)                      Operator
                          Tonnes (Mt)  Sn (%)  Contained metal (t)  Tonnes (Mt)  Sn (%)     Contained metal (t)
 Measured                 21.54        0.139   29,899               18.31        0.139      25,414               AfriTin Mining
 Indicated                13.05        0.136   17,765               11.09        0.136      15,100               AfriTin Mining
 Inferred                 36.95        0.130   47,875               31.41        0.130      40,694               AfriTin Mining
 Total                    71.54        0.134   95,539               60.81        0.134      81,208               AfriTin Mining

Source: CSA Global

Note: The constraining pit shell is based on a revenue factor of 1.5,
employing a 3-year trailing average tin price of USD 20,000/t.  Ore losses
and mining dilution were set at 5%. Pit slope angles were assumed to be 50°
with an assumed metallurgical recovery of Sn of 80%, producing a concentrate
of 60% Sn.  Mining, Treatment, G and A and Selling Costs have been supplied
by AfriTin and reviewed for reasonableness by CSA Global. A Sn cut-off grade
of 0.05% Sn has been applied to resources within the constrained pit.
 Tabulated data have been rounded off and this may result in minor
computational errors.

* AfriTin has an attributable ownership of 85% in Uis with the remaining 15%
owned by The Small Miners of Uis (SMU)

Table 2: AfriTin mining Inferred resource (JORC-2012) estimate of ancillary
elements within the Uis Tin Mine V1 and V2 pegmatites.

 Inferred Resource    Gross                 Net Attributable (85%*)       Operator
                      Ta (ppm)  Li(2)O (%)  Ta (ppm)       Li(2)O (%)
 Grade                85        0.63        85             0.63           AfriTin Mining
 Tonnes (Mt)          71.54     71.54       60.81          60.81          AfriTin Mining
 Contained metal (t)  6,091     450,265     5,177          382,725        AfriTin Mining

Source: CSA Global

Note: Tabulated data have been rounded off and this may result in minor
computational errors. Contained metal for lithium refers to lithium oxide
(Li(2)O)

* AfriTin has an attributable ownership of 85% in Uis with the remaining 15%
owned by The Small Miners of Uis (SMU)

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