ProActive Investors Australia
KASBAH RESOURCES
Full Kasbah Resources profile here
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.
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.
Monday, March 19, 2012 by John Phillips
The full potential of Achmmach is still to be tapped, although the project is already established as the one of the largest and highest quality hard rock tin projects in development in the world. Pre-Feasibility Study is on track to be completed in April.
Kasbah Resources (ASX: KAS) in yet another major positive announcement for the company in 2012, have upgraded the Achmmach Tin Project resource by 150% to 14.6 million tonnes at 0.9% tin for 135,000 tonnes of contained tin.
The resource break down is; Indicated 5.3 million tonnes at 0.8% tin for 42,000 tonnes; and Inferred 9.3 million tonnes at 1.0% tin for 93,000 tonnes.
This comes less than a week after the landmark deal was signed with the Toyota Tsusho Corporation for an option to acquire up to a 20% interest in Achmmach, which is located in Morocco.
The deal with Toyota Tsusho de-risks Achmmach for Kasbah, while also providing a major vote of confidence in the company’s operations by attracting the premier tin trading house in Asia with over three decades experience in the tin market.
Wayne Bramwell, managing director, told Proactive Investors today that there will be up to 18,000 metres drilled at Achmmach by mid-2012, after which the data will be used for a new resource calculation – forecast for delivery in the September 2012 quarter.
Bramwell added; “This is an outstanding achievement and a credit to the efforts of the Kasbah Exploration and Resource Development team. The latest drilling has effectively bridged the Gap Zone and has linked the resource across 1.5 kilometres of the Meknes Trend.”
(Note: The Meknes Trend is the new name for the formerly referred to and reported as Fez, Meknes, Marrakech, Gap and Eastern – due to these areas being part of a larger, continuous mineralised system)
Where the story gets even more interesting for Kasbah is the upside size and scale at Achmmach is yet to be known.
The Meknes Trend is still open to the west, east and at depth – along with proximate targets such as those within the newly named Sidi Addi Trend, providing vast potential for new discoveries which could ultimately enhance the projects economics.
April Pre-Feasibility Study on track
The strong short term news flow for Kasbah is set to continue with a Pre-Feasibility Study on track to be completed in April.
Not to be forgotten, exploration is moving forward at speed with five diamond rigs active which will continue with in-fill and extensional drilling of the Meknes Trend – providing constant exploration news flow.
Kasbah has indicated that the company is targeting another resource upgrade in the September quarter of 2012.
Toyota Tsusho Corporation buy-in
To earn its 20% interest in one of the largest undeveloped tin deposits in the world, Toyota Tsusho must make a series of payments to Kasbah, which will be used for exploration and development works at Achmmach, as well as finalise a joint venture agreement.
Toyota Tsusho must pay Kasbah A$1 million on signing the MoU, which is non-refundable, $4 million within 45 days of signing the MoU, $11 million within 60 days of completion of the Pre-Feasibility Study, and a final payment to be calculated from the net present value of the Definitive Feasibility Study and paid within 90 days of completion of the study.
The final payment and signing of a joint venture agreement will secure Toyota Tsusho’s 20% interest and entitle the company, on mutually agreeable commercial terms, to a minimum 20% offtake of tin produced from these two exploitation permits.
Kasbah will manage and operate the joint venture.
If the option payments are made by Toyota Tsusho, Kasbah will provide security over shares in Kasbah Gold SARLAU, which holds the Achmmach permits, to Toyota Tsusho.
Importantly, this security can be enforced in the event that Kasbah has not completed the Pre-Feasibility Study by 31 December 2012 or the Definitive Feasibility Study by 31 December 2013.
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