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GRAND BAIE, Mauritius, July 06, 2021 (GLOBE NEWSWIRE) -- Alphamin Resources Corp. (AFM:TSXV, APH:JSE AltX,“Alphamin” or the“Company”), a producer of 4% of the world's mined tin1 from its high grade operation in the Democratic Republic of Congo, is pleased to provide the following operational and growth update for the quarter ended June 2021:
- Q2 EBITDA guidance of $34m , at a tin price of $28,326/t versus current of $31,800/t
- Net Debt reduced to $29.9m
- Contained tin production of 2,412 tons (11% below prior guidance and 8% below the prior quarter)
- Fine tin recovery plant fully commissioned and producing from 26 June 2021
- Mpama South phase 3 drilling progressing to plan with strong visual mineralisation from initial step-out holes
- Mpama North Deeps drilling commenced 2 July 2021 with additional rigs under mobilisation to accelerate drilling campaign
Operational and Financial Summary for the Quarter ended June 2021 2
| Description || Units || Actual |
| || || Quarter |
| Quarter |
| Variance |
| Tons Processed || Tons || 105,294 || 93,997 || 12% |
| Tin Grade Processed || % Sn || 3.2 || 3.8 || -16% |
| Overall Plant Recovery || % || 72 || 74 || -3% |
| Contained Tin Produced || Tons || 2,412 || 2,611 || -8% |
| Contained Tin Sold || Tons || 2,404 || 3,351 || -28% |
| EBITDA3 (Q2 2021 guidance) || US$'000 || 34,000 || 36,453 || -7% |
| Tin Price Achieved || US$/t || 28,326 || 23,083 || 23% |
1Data obtained from International Tin Association Tin Industry Review 2020. 2Production information is disclosed on a 100% basis. Alphamin indirectly owns 84.14% of its operating subsidiary to which the information relates. 3Q2 2021 EBITDA represents management's guidance.
Operational and Financial Performance
Contained tin production of 2,412 tons was 11% below guidance (2,700 tons), impacted by a low feed grade of 3.2% Sn compared to 3.8% Sn the previous quarter. The month of June 2021 saw lower than expected grades from underground. The variable nature of tin mineralisation in the orebody may cause large fluctuations in delivered grade – as a mitigating tool we will increase planned waste development for the remainder of the year in order to provide more mining flexibility for blending high- and low-grade areas.
Taking into consideration the lower feed grade, the processing plant performed well, treating 12% more material and achieving recoveries of 72%.
Our EBITDA guidance of $34m for Q2 2021 is 7% below Q1 2021 – the previous quarter benefitted from a significant catch-up in tin sales following logistical bottlenecks during Q4 2020. Tin prices are currently trading at around $31,800/t, 12% above prices achieved during the past quarter.
Net debt amounted to $29.9m at 30 June 2021, down 50% from the start of the financial year (31 December 2020: $59.9m).
The Company has appointed Mr. Jan Trouw as the on-mine Managing Director of its 84.14% subsidiary, Alphamin Bisie Mining, effective 1 July 2021. Mr Trouw is well known to the Alphamin team and has over 40 years of African mining experience – recently as head of the Frontier copper mine in the DRC and prior to that as General Manager of the high-grade Chibuluma copper mine in Zambia. He was instrumental during late 2019 in developing the new mining method and mine design criteria for Alphamin's Bisie tin mine. We look forward to working with Mr Trouw in realising our vision of becoming one of the world's largest long-life tin producers.
Alphamin's unaudited consolidated financial statements and accompanying Management's Discussion and Analysis for the quarter ended 30 June 2021 is expected to be released on or around 9 August 2021.
Fine Tin Recovery Plant (FTP) - The FTP is fully commissioned and produced at steady state from 26 June 2021. Expenditure at completion is substantially in line with the budget of US$4.6 million. Production from the FTP during its first week of operations increased overall contained tin production by 5%. This exceeded expectations so early after commissioning. The exceptionally high grade of the FTP concentrates provides further scope to reduce product grade in pursuit of higher tin recoveries.
Exploration Activities - Alphamin's exploration initiative aims to: extend the life-of-mine at its currently producing Mpama North operation; to declare a Maiden Mineral Resource for Mpama South (located 750 metres south of Mpama North); and to discover at least one additional orebody on the highly prospective Bisie Ridge (13km strike length).
Drilling at the Mpama North orebody commenced on 2 July 2021. An initial 15,000 metre (22 holes) drilling campaign over 4 months is planned to test the strike and dip extension of the current producing orebody, below 400m in depth from the mine portal.
The Mpama South phases 1 and 2 drilling of 10,015 metres (46 holes) have been completed with external assays for 29 holes announced to date. The remaining external lab assays are expected in two batches during July and early August 2021. Phase 3 drilling of 6,800 metres is progressing to plan - to date, 5 of the 24 holes have been completed showing strong visual mineralisation over wide intercepts within the interpreted high-grade shoot.
In addition to Mpama North and Mpama South, drilling on the highly prospective Bisie ridge (13km strike length), which falls within the Company's mining licence, is expected to commence in August 2021. Access roads have been established and initial drill targets are being developed in consultation with the Company's appointed structural specialists, TECT Geological Consulting.
Mr Vaughn Duke Pr.Eng. PMP, MBA, B.Sc. Mining Engineering (Hons.), is a qualified person (QP) as defined in National Instrument 43-101 and has reviewed and approved the scientific and technical information contained in this news release. He is a Principal Consultant, Partner and Director of Sound Mining Solutions, an independent technical consultant to the Company.
FOR MORE INFORMATION, PLEASE CONTACT:
Alphamin Resources Corp.
Tel: +230 269 4166
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