Kasbah Slows Achmmach Development on Poor Market

SEATTLE (ITRI.CO.UK): Mine developer Kasbah Resources has slowed progress at its Achmmach project due to the poor tin market conditions.

In its quarterly report, the company announced that it had progressed corporate restructuring and reduced expenditure. As a result, Kasbah announced that it would not rapidly advance project financing. Despite slowing development until the market improves, the company secured an additional $1.3 million loan from Pala Investments Ltd.

During the year, Kasbah completed the Front-End Engineering Design and Independent Technical Specialist Report. This work focuses on the technical side of operations, estimating investment costs and technical requirements for the mine. Both will enter the project’s future Definitive Feasibility Study.

The company also reported that it was still actively exploring cost-reducing initiatives and options to extend the life of mine. As announced in September, Kasbah confirmed further mineralisation at Achmmach. Similar mineralisation was found in the Sidi Addi Trend, a similar structure to the Meknes Trend, the basis of the project’s Mineral Resource Estimate. Although the company has not yet estimated the tin contained in the Sidi Addi Trend, it represents a geological upside to the project.

ITRI View: Current tin market conditions are not conducive to mine project development. However, this is primarily due to macroeconomic factors. Tin fundamentals remain strong and are likely to improve further in the medium- to long-term future. New solder uses such as 5G, automation and robotics, will be particularly beneficial.

Courtesy: www. itri.co.uk