Kasbah Moves Achmmach Tin Deposit Closer to Development

Kasbah Resources (ASX:KAS) reports it will proceed with securing funding and developing Achmmach after the latest feasibility study into the project showed improved economics.

Australian based Kasbah is the 75 percent owner of the Achmmach tin project, located in Morocco. Earlier this week the company released the latest DFS for the site which pegged the contained tin estimate at 58,000 tonnes.

As quoted from the press release:

The feasibility study is the fourth such study into Achmmach but finally shows a project that should be capable of development.

The study shows that Achmmach can be developed at a capital cost of $US96.4 million ($129.9m) and generate an internal rate of return of around 23 percent.

The mine’s forecast all-in sustaining costs are expected to be $US11,435 a tonne of tin, well below current tin prices of around $US20,000 a tonne.

Achmmach is one of the few advanced tin projects in the world but has had a tortured path towards development.

Previous studies in 2014, 2015 and 2016 hinted at its potential but were not sufficiently attractive to progress the project. Kasbah was also at the centre of a protracted corporate drama in late 2016 and early 2017 when it was the subject of a proposed, but ultimately aborted, merger with Canada’s Asian Mineral Resources (TSXV:ASN).

It has since had a sweeping overhaul of its board, with veteran executive Russell Clark installed as chief executive just under a year ago. The economics of Achmmach have improved under the latest study due to the addition of ore-sorting and new grinding technology.

Tin is one of the metals most leveraged to growth in new technologies. A recent study by MIT found that tin would be the metal most impacted by the rise of electric vehicles, advanced robotics, renewable energy and advanced computing, outstripping even lithium and cobalt.

The price of tin has climbed around 60 percent over the past two years amid a sharp decline in global tin stockpiles. There is currently around four weeks worth of tin demand sitting in warehouses around the world.

Click here to read the full press release