Alphamin to commence with development of Mpama South expansion in DRC

Alphamin Resources has today announced an update to the mineral resource estimate at its Mpama South tin deposit, along with the decision to commence with the development of the expansion project at Bisie in the Democratic Republic of Congo (DRC).

The TSXV and JSE-listed firm’s high grade Mpama North deposit currently produces 4% of the world’s mined tin. Following the positive investment decision, Alphamin expects to produce first tin at Mpama South by December 2023.

Mpama South is estimated to boast an annual contained tin production of 7,232 tonnes, with an AISC of US$15,188 per tonne of tin (based on an assumed tin price of $40,000 per tonne). The project’s EBITDA is estimated to be $187 million, with capital development costs of $116 million.

Alphamin said the project execution is de-risked by way of the similar mining method, mining fleet and processing route to Mpama North, while capital development costs are to be funded from the company’s cash reserves.

“The development of Mpama South as a brownfields expansion is expected to increase Alphamin’s annual tin production by 65% to a targeted 20,000 tonnes from FY2024,” said CEO Maritz Smith.

“Tin and technology are inter-linked and consequently global demand for tin continues to increase despite constrained supply, Smith continued. “This development decision and the resultant additional production expected by the end of 2023, positions us to deliver more tin into this widening market deficit.”

The company also updated the Mpama South inferred resource by 75% to 3.42 million tonnes, based on assays from 22 additional drillholes. Drilling is ongoing at the deposit, with significant additional resource growth potential, according to Alphamin.