AfriTin Mining Ltd Uis Tin Mine Operational Update (2244A)

TIDMATM

RNS Number : 2244A

AfriTin Mining Ltd

28 May 2019

28 May 2019

AfriTin Mining Limited

("AfriTin" or the "Company")

Uis Tin Mine Operational Update

AfriTin Mining Limited (AIM: ATM), a mining company with a portfolio of near production tin assets in Namibia and South Africa, with the flagship asset being the Uis Tin Mine in Namibia ("Uis"), is pleased to provide an operational update relating to its mining and processing facility at Uis as part of the Phase 1 Pilot Plant project.

Highlights:

- Phased processing plant commissioning started;

- Mining contractor mobilised;

- Workforce recruitment nearing completion;

- Water and power infrastructure in place;

- Resource validation drilling completed with twenty holes drilled; and,

- Additional financing & working capital facility secured.

Commissioning of the processing plant at Uis has now commenced and is being conducted in a phased manner, starting with the testing of mechanical installations and progressing to continuous ore beneficiation. The plant consists of two main parts: a 4-stage crushing circuit and a 3-stage concentrating circuit. The C4 stage of commissioning, which involves passing ore material through the circuit, is scheduled for end of May 2019 for the crushing circuit and end of June 2019 for the concentrating circuit. During the commissioning, the plant will produce initial tin concentrate; however, hot commissioning and continuous plant operations will likely commence in July 2019. This represents a slight deviation from previous guidance by the Company stating that commercial tin concentrate production will commence in Q2 2019. The is due to longer than expected lead times in the procurement of equipment, material and construction services.

Commissioning will be followed by a production ramp up spanning four months with the goal of achieving design capacity before the end of Q4 2019.

Mining contractors have been mobilised and have commenced with continuous mining operations at the Uis mine. Initially, outcropping pegmatites of the V1 and V2 ore bodies will be targeted, utilising an opencast mining method and production will be ramped up according to the schedule of the processing plant. AfriTin is conducting overburden stripping at a ratio of 1.5 tonnes of overburden to one tonne of ore so as to ensure the sustainable exposure of ore over the life of the Phase 1 operation.

The Company is in the process of recruiting operational personnel. Approximately one third of the total planned complement of 90 people have been appointed, including the entire management team.

General infrastructure to the operation is now in place, including water supply from groundwater sources and electrical power supply from diesel generating sets. As per the announcement of 8 May 2019, the Company has concluded an agreement with the Namibian Power Corporation for provision of grid electrical power. Construction of the infrastructure required for the grid power connection has started.

The Company has completed exploration drilling (twenty holes) aimed at validating the historical mineral resource information by SRK in 1985, for ISCOR, for the V1 and V2 pegmatites. The first five holes have been announced (refer to announcement of 20 May 2019) and outstanding assay results are expected during June 2019.

The completion of the Phase 1 Pilot Plant project and ramp up to steady-state production are supported by an equity fund raising and a general working capital facility as announced by the Company on 22 May 2019.

At Uis, formerly the world's largest hard-rock tin mine, management are employing a two-fold strategy: the Phase 1 Pilot Plant is designed to process approximately 500,000 tonnes per annum producing approximately 60 tonnes of tin concentrate per month while Phase 2 will comprise a planned operation of a 3 million tonne per annum processing facility, producing approximately 5,000 tonnes per annum of tin concentrate.

Commenting on the developments CEO Anthony Viljoen stated, "We have been looking forward to this exciting phase of the project since breaking first ground at the end of 2018. While there is work to be done to achieve steady state production, the significant step of commencing production and first concentrate is a momentous milestone for the company. Bringing a project of this scale and stature into a supply constrained tin market, less than two years since our admission to AIM, I believe this places Afritin as a player of significance in the global tin market."

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.

For further information, please visit www.afritinmining.com or contact:

 
 AfriTin Mining Limited 
 Anthony Viljoen, CEO                  [phone] 
 Nominated Adviser and Joint Broker 
 WH Ireland Limited 
  Katy Mitchell 
  James Sinclair-Ford                  [phone] 
 Corporate Adviser and Joint Broker 
 H&P Advisory Limited 
  Andrew Chubb 
  Jay Ashfield 
  Nilesh Patel                         [phone] 
 Joint Broker 
 NOVUM Securities Limited 
  Jon Belliss                          [phone] 
 Financial PR (United Kingdom) 
 Tavistock                             [phone] 
 Jos Simson 
  Barney Hayward 
 

About AfriTin Mining Limited

Notes to Editors

AfriTin Mining is the first pure tin company listed in London and its vision is to create a portfolio of world-class, conflict-free, tin producing assets. The Company's flagship asset is the Uis brownfield tin mine in Namibia, formerly the world's largest hard-rock tin mine.

AfriTin is managed by an experienced board of directors and management team with a current two-fold strategy: fast track Uis brownfield tin mine in Namibia to commercial production in 2019 ramping up to 5,000 tonnes of concentrate, and consolidation of other quality African tin assets. The Company strives to capitalise on the solid supply/demand fundamentals of tin by developing a critical mass of tin resource inventory, achieving production in the near term and further scaling production by consolidating tin assets in Africa.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

END

UPDEAFSXAEENEAF

(END) Dow Jones Newswires

May 28, 2019 02:01 ET (06:01 GMT)