ProActive Investors Australia
Kasbah Resources (ASX: KAS) is an advanced explorer and developer purely focussed on tin. Kasbah’s main focus has been to progress the Achmmach Tin Project in Morocco, having established a robust underground JORC resource.
KASBAH RESOURCES | www.kasbahresources.com
Recent drilling results indicate that Achmmach is rapidly transforming into a asset with considerable potential for a substantial underground mine to be developed. Kasbah has built a presence in Morocco with strong relationships with Morocco’s Mines Department and the local Moroccan community.
Kasbah Resources completes infill drilling along Gap Zone at Achmmach Tin project
Wednesday, August 15, 2012 by Angela Kean
Kasbah Resources (ASX: KAS) has completed infill drilling along the formerly named Gap Zone at its Achmmach Tin Project in Morocco which has returned best results of 13 metres at 1.74% tin from 400.2 metres, including 4.2 metres at 2.81% tin.
Resource development drilling across the Meknes Trend is targeting an upgrade of the Inferred Resources to the higher confidence Indicated category, scheduled for the March quarter of 2013.Drilling will now progress further to the east initially focusing on areas highlighted in the Pre-Feasibility Study (PFS) as potential production sources. Other notable intersections from the recent 40 metre spaced infill drilling included 4.6 metres at 1.01% tin from 352.5 metres, and 6.2 metres at 0.61% tin from 386 metres. Importantly, the lowest intersections in two of the four holes are better than the modelled grades in the block model and are interpreted as being in the same tourmaline alteration zone.The higher grade intercept of 13 metres at 1.74% tin from 400.2 metres has enhanced the grade due to the presence of breccia vein style mineralisation.Around 400 metres of the 2 kilometre strike length of the Meknes Trend is yet to be tested by drilling which also provides the potential for an increase in Resources, with only 1.6 kilometres modelled in the 2012 Resource. Next exploration stepsThe expanded drilling program is now extending the 40 metre spaced drilling into the eastern zone of the Meknes Trend and will provide an additional 30,000 metres of new drilling data to Kasbah. On completion of this Kasbah will have over 85,000 metres of diamond drilling across 2 kilometres of the Meknes Trend as a basis for an updated Resource in the March quarter of 2013.PFS delivers economic and technical viabilityRecently Kasbah proved up the economic and technical viability of Achmmach with the results from the PFS showing potential for a net present value of US$134 million.Low costs are a feature of the PFS findings, with highly competitive mine gate costs of US$65.76 per tonne of ore and project development costs, including all surface infrastructure, of US$167.The PFS is based on an underground operation producing 1 million tonnes per annum, with a concentrator producing 6,880 tonnes of tin in concentrate each year for export to an Asian tin smelter.Based on the 2013 Consensus tin price of US$24,407, this gives Kasbah the potential to achieve a net present value (NPV) of US$134 million, although a base case NPV of US$79 million is also given, using a tin price of US$21,961.Importantly, these figures could be improved based on potential capital cost reductions through optimisation of the surface infrastructure layout.September quarter milestones anticipated During the September quarter 2012, Kasbah is expecting to achieve the following:- Continuation of resource development drilling into the eastern zone of the Meknes Trend;- Commencement of exploration drilling at the Bou El Jaj Tin Project; and- Commencement of DFS level metallurgical test work for Achmmach.Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.
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