Commencement of drilling campaign at the adjacent Mpama South deposit
Fine tin recovery plant construction 70% complete
Abnormal seasonal rains resulted in logistical constraints which negatively impacted quarterly sales volumes (down 14% from the previous quarter)
Data 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
Operational Performance
Tin production increased 13% to a quarterly record of 2,898 tons and was higher than our previous market guidance of 2,600 to 2,800 tons. This outperformance was due to better than expected tin feed grades and plant recoveries. The processing plant performed at an average recovery of 74% for the quarter, including a record recovery of 77% achieved in
Quarterly sales decreased by 14% due to extreme seasonal rains impacting export road conditions. Weather stations across the export route reported rainfall above 159% of the long-term mean. The short dry-season (Jan-March) allows road maintenance to be done and already road conditions are improving, and we expect to recoup the majority of the quarter's sales shortfall during Q1 2021.
The LME tin price has increased from approximately
The Bisie tin mine recorded zero lost-time injuries during the past quarter.
Alphamin's audited consolidated financial statements and accompanying Management's Discussion and Analysis for the quarter and year ended
Production Guidance for the year ending
Alphamin's short-term objective is to increase annualised contained tin production from the current level of 11,000t to 13,000t. This increase is expected from
On this basis, we expect contained tin production of 5,500t in H1 2021 increasing to 6,500t in H2 2021, which would achieve our annualised production goal of 13,000t thereafter.
3 Production guidance is based on certain estimates and assumptions, including but not limited to: quantity of material processed, tin grades of processed material and processing recoveries and assumes mining operations will continue to be conducted in the same manner as the previous quarter and will not be further impacted by the Covid-19 pandemic.
Covid-19 Pandemic and Impact on Operations
The health of our employees is of paramount importance and in this regard the Company has a range of Covid-19 awareness, prevention and other risk mitigation controls in place.
To date, the Company has been able to continue with normal production and concentrate sales activities and has not been negatively affected by the Covid-19 pandemic.
Growth Initiatives
The fine tin recovery plant is 70% complete and progressing on schedule for commissioning commencing
Drilling at the Mpama South deposit, located only 750m south of the current processing facility, commenced in
While Mpama South could provide an opportunity to increase the production rate and life of operations at Bisie, an extension of the life of mine at Mpama North (current producing orebody) can be confirmed by drilling down-dip and along strike beyond the northernmost holes drilled in the 2014 drilling campaign. A 6,000m diamond drilling campaign is planned for execution in Q2 2021 from an underground drilling drive (under development) located on Level 6 at Mpama North. Access for the drill rig to commence drilling is planned for
Further, the 14km long
Contact:
Tel: +230 269 4166
Email: msmith@alphaminresources.com
CAUTION REGARDING FORWARD LOOKING STATEMENTS
Information in this news release that is not a statement of historical fact constitutes forward-looking information. Forward-looking statements contained herein include, without limitation, statements relating to anticipated mining, processing and production volumes, timing and cost of completion of the Company's fine tin recovery plant, the timing and success of additional exploration drilling, and road conditions for the export of tin produced. Forward-looking statements are based on assumptions management believes to be reasonable at the time such statements are made. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Although Alphamin has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Factors that may cause actual results to differ materially from expected results described in forward-looking statements include, but are not limited to: uncertainties associated with Alphamin's resource and reserve estimates, uncertainties regarding estimates of the expected mined tin grades, processing plant performance and recoveries, uncertainties regarding global supply and demand for tin and market and sales prices, uncertainties with respect to social, community and environmental impacts, adverse political events, impacts of the global Covid-19 pandemic on mining operations and commodity prices as well as those risk factors set out in the Company's Management Discussion and Analysis and other disclosure documents available under the Company's profile at www.sedar.com. Forward-looking statements contained herein are made as of the date of this news release and Alphamin disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.
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