| Mon 7 Mar 2022, 14:30 | | ALPHAMIN RESOURCES CORP. - Alphamin announces maiden mineral resource estimate and positive preliminary economic assessment for Mpama South |
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Alphamin announces maiden mineral resource estimate and positive preliminary economic assessment for Mpama South
Alphamin Resources Corp.
Continued in the Republic of Mauritius
Date of incorporation: 12 August 1981
Corporation number: C125884 C1/GBL
TSX-V share code: AFM
JSE share code: APH
ISIN: MU0456S00006
ALPHAMIN ANNOUNCES MAIDEN MINERAL RESOURCE ESTIMATE AND POSITIVE
PRELIMINARY ECONOMIC ASSESSMENT FOR MPAMA SOUTH
07 March 2022 – 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 announce a Mineral Resource estimate and a
positive Preliminary Economic Assessment (PEA) for Mpama South.
HIGHLIGHTS
- Maiden Mineral Resource declared on Mpama South, making it the second highest
grade publicly reported CRIRSCO tin Mineral Resource globally1 and one of the largest
in terms of contained tin with:-
• 0.83Mt @ 2.58% Sn for 21.5kt contained tin in the Indicated category; and
• 1.95Mt @ 2.52% Sn for 49.1kt contained tin in the Inferred category
- Significant resource growth potential on Mpama South - drilling continues with
considerable mineralisation intercepted beyond the Maiden Mineral Resource boundary
- Positive PEA results for Mpama South:-
o Estimated Annual contained tin production of 7,232 tonnes at an estimated
AISC2 of US$15,188/t tin (Basis a US$40,000/t tin price)
o Estimated Annual EBITDA2 of US$187m at an assumed tin price of US$40,000/t
o Estimated capital development cost of US$116m providing a projected short
payback in relation to annual EBITDA potential
o Known implementation with similar mining method, mining fleet and processing
route as currently applied at the Company’s adjacent Mpama North mine
o Estimated 20-month construction timeline
o Development infrastructure would join up with the currently producing Mpama
North mine
1 Data obtained from International Tin Association Tin Industry Review 2020
2
This is a non-GAAP financial measure, is not standardized and may not be comparable to similar financial measures of other issuers.
See “Use of Non-IFRS Financial Performance Measures” below for a further explanation of this performance metric and how it is
calculated.
Chief Executive Officer, Maritz Smith comments:
“We are delighted to declare a Maiden Mineral Resource estimate and the outcome of a PEA
study on Mpama South. The PEA quantifies the potentially value accretive economics of
expanding production with the development of the adjacent Mpama South mine. Our current
producing Mpama North mine absorbs large fixed costs, which facilitates incremental production
from Mpama South at a competitive marginal cost. Developing Mpama South would bring
Alphamin closer to its vision of becoming one of the world’s largest low-cost tin producers.”
Mpama South Maiden Mineral Resource Estimate Declared
Following completion of the Phase 3 diamond drilling campaign in September 2021 and receipt
of assays, a Mineral Resource Estimation (MRE) for the Mpama South project was commenced
in December 2021. The MRE includes results from 79 drillholes totalling 23,109m, was estimated
using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Best Practice Guidelines
(2019) and is reported in accordance with the 2014 CIM Definition Standards. Mineral Resources
that are not Mineral Reserves do not have a demonstrated economic viability and require
advanced studies and economic analysis to prove their viability for extraction.
The Mineral Resource is classified into the Indicated and Inferred categories and is reported at a
base case tin grade of 1.0%, which satisfies reasonable prospects for economic extraction. The
Mineral Resource Statement with an effective date of 4 March is presented in Table 1:-
Sn Tonnes
Classification Tonnes (millions) Sn % (thousands)
Indicated3 0.83 2.58 21.52
Inferred4 1.95 2.52 49.12
The estimated Mineral Resource for Mpama South does not include the substantial quantity of
subsequent drilling completed in Phases 4 and 5 since September 2021, which yield positive
results with characteristic high grade visual cassiterite in many of the drillholes. Over 40
subsequent drillholes and over 10,000 metres beyond the limits of the Maiden MRE at Mpama
South have been completed since Phase 3 – a visual illustration of mineralised intercepts against
3
CIM Definition: An Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and
physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors insufficient detail to support mine
planning and evaluation of the economic viability of the deposit.
4
CIM Definition: An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the
basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality
continuity.
the maiden MRE is illustrated in Figure 1. Subsequent Mpama South MRE updates will be
released throughout the remainder of the drilling phases in 2022 and beyond as assays are
received.
The MRE has been completed by Mr. J.C. Witley (BSc Hons, MSc (Eng.)) who is a geologist with
33 years’ experience in base and precious metals exploration and mining as well as Mineral
Resource evaluation and reporting. He is a Principal Resource Consultant for The MSA Group
(an independent consulting company), is registered with the South African Council for Natural
Scientific Professions (SACNASP) and is a Fellow of the Geological Society of South Africa
(GSSA). Mr. Witley has the appropriate relevant qualifications and experience to be considered
a “Qualified Person” for the style and type of mineralisation and activity being undertaken as
defined in National Instrument 43-101 Standards of Disclosure of Mineral Projects.
Figure 1: Mpama South and Mpama North becoming one deposit (View from East)
Source: Alphamin 2022
Preliminary Economic Assessment Results on Mpama South
The PEA encompassed various studies of a mining, metallurgical, environmental and regulatory
nature. They demonstrated the potential viability of expanding production by developing the
Mpama South Mineral Resource through leveraging the adjacent Mpama North Mine services
(power, water, site access, underground infrastructure and personnel) coupled with the
construction of a dedicated second lookalike processing plant and mine portal (Figure 2).
The PEA is preliminary in nature, it includes Inferred Mineral Resources that are considered too
speculative geologically to have economic considerations applied to them that would enable them
to be categorized as Mineral Reserves. There is no certainty that the PEA results will be realized.
Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability,
nor is there certainty that the Mineral Resource will be converted into Mineral Reserves.
Summary results from the PEA are tabulated below:-
Description Unit Value
Total run-of-mine (ROM) processed ‘000t 2,068
Avg. Annualised ROM mined and processed ‘000t 468
Avg. Annualised ROM grade %Sn 2.21
Processing recovery % 70.0
Avg. Annualised Contained tin produced tonnes 7,232
Avg. Annualised AISC per tonne contained tin sold (At
$/t tin 15,188
US$40,000/t tin price)
Avg. Annualised AISC per tonne contained tin sold (At
$/t tin 14,326
US$30,000/t tin price)
Avg. Annualised EBITDA (At US$40,000/t tin price) US$’000 187,310
Avg. Annualised EBITDA (At US$30,000/t tin price) US$’000 121,220
Development Capital Estimate US$’000 115,970
* The outputs are basis 100% of the project. Alphamin indirectly owns 84,14% of the project.
Figure 2: PEA Development Option (Plan View)
Source: Alphamin 2022
Figure 3: PEA Development Option (Oblique View from South West)
Source: Alphamin 2022
Mining studies were prepared by Bara Consulting (Pty) Limited who provides design and
scheduling services for the operating Mpama North Mine. The study evaluated then selected a
similar mining method and fleet to the current mining activities at Mpama North. An oblique view
of development, stoping, the new portal and proposed connecting development is illustrated in
Figure 3. Substantial exploration drilling after the cut-off date for the Maiden Mineral Resource
estimate has been completed subsequently (Figure 1). This additional mineralisation beyond the
boundaries of the PEA Resource is illustrated in Figure 3 in pink and reached within 40m of
Mpama North underground development.
In October 2021, a representative bulk metallurgical sample derived from Mpama South Maiden
resource drilling holes was exported to Maelgwyn Mineral Services in South Africa for
comparative mineralogical and metallurgical studies. The mineralogy results are similar to the
original Mpama North sample tested by Maelgwyn in 2015, but with marginally higher metal
sulphides and a finer tin deportment. Characterisation testwork delivered results comparable to
the original Mpama North variability testwork and to current plant performance.
A trade-off review was conducted and concluded that constructing a new plant as opposed to
expanding the current plant would be more advantageous in that the current mine production
would not be affected during the plant’s construction.
Bara Consulting (Pty) Limited estimated the capital costs for underground mine development and
infrastructure based on current Mpama North cost structures adjusted, where appropriate, to
reflect the Mpama South design criteria and parameters. Obsideo Consulting (Pty) Limited
completed a detailed engineering costing study to determine the cost of replicating the processing
plant and associated surface infrastructure. These studies formed the basis for the capital
development cost estimate.
The expanded mine, processing plant and infrastructure requires an update to the existing
Environmental Management Plan. Baseline studies have commenced.
Next Steps
In anticipation of further resource updates during 2022, including from in-fill drilling, the Company
will proceed with the appointment of an EPCM contractor, detailed development scheduling and
design work.
Qualified Persons
Mr Jeremy Witley, Pr. Sci. Nat., B.Sc. (Hons.) Mining Geology, M.Sc. (Eng.), is a qualified person
(QP) as defined in National Instrument 43-101 and has reviewed and approved the scientific and
technical information relating to Mineral Resources contained in this news release. He is a
Principal Mineral Resource Consultant of The MSA Group (Pty.) Ltd., an independent technical
consultant to the Company.
Mr. Clive Brown, Pr. Eng., B.Sc. Engineering (Mining), is a qualified person (QP) as defined in
National Instrument 43-101 and has reviewed and approved the scientific and technical
information relating to the PEA contained in this news release. He is a Principal Consultant and
Director of Bara Consulting Pty Limited, an independent technical consultant to the Company.
____________________________________________________________________________
FOR MORE INFORMATION, PLEASE CONTACT:
Maritz Smith
CEO
Alphamin Resources Corp.
Tel: +230 269 4166
E-mail: msmith@alphaminresources.com
JSE Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
____________________________________________________________________________
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 the results of the Mpama South PEA, including estimated development
costs, estimated quantities of materials to be mined and processed, estimated grades,
metallurgical recoveries and quantities of tin to be produced, and estimated costs of production
and EBITDA, estimated time for mine construction, the merit and potential viability of the project,
estimated Mineral Resources for Mpama South, anticipated early development work for a mine
at Mpama South and anticipated exploration activities and outcomes. 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 inherent in estimates of Mineral Resources, mine development
and operating costs, mining volumes, grades and processing recoveries, particularly in light of
the very early stage at which some of these estimates are being made, global economic
uncertainties, volatility of metal prices, uncertainties with respect to social, community and
environmental impacts, uninterrupted access to required infrastructure, adverse political events,
impacts of the global Covid-19 pandemic on mining 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.
USE OF NON-IFRS FINANCIAL PERFORMANCE MEASURES
This announcement refers to the following non-IFRS financial performance measures:
EBITDA
EBITDA is profit before net finance expense, income taxes and depreciation, depletion, and
amortization. This measure assists readers in understanding the cash generating potential of the
project including liquidity to fund working capital, pay taxes, service debt, and funding capital
expenditures and investment opportunities.
This measure is not recognized under IFRS as it does not have any standardized meaning
prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by
other issuers. EBITDA data is intended to provide additional information and should not be
considered in isolation or as a substitute for measures of performance prepared in accordance
with IFRS.
AISC
This measures the costs to produce a tonne of contained tin plus the capital sustaining costs to
maintain the mine, processing plant and infrastructure. AISC includes mine operating production
expenses such as mining, processing, administration, indirect charges (including surface
maintenance and camp and tailings dam construction costs), smelting costs and deductions,
refining and freight, distribution, royalties and product marketing fees. AISC does not include
depreciation, depletion, and amortization, reclamation expenses, borrowing costs and exploration
expenses. Contractual product marketing fees terminate in August 2024, following which date
zero marketing fees have been included in estimated AISC and EBITDA.
Sustaining capital expenditures are defined as those expenditures which do not increase
contained tin production at a mine site and excludes all expenditures at the Company’s projects
and certain expenditures at the Company’s operating sites which are deemed expansionary in
nature.
Risks relating to Mineral Resource Estimates
The figures for Mineral Resources contained in this news release are estimates only and no
assurance can be given that the anticipated tonnages and grades will be achieved, that the
indicated level of recovery will be realized or that the Mineral Resources could be mined or
processed profitably. There are numerous uncertainties inherent in estimating Mineral Resources,
including many factors beyond the Company’s control. Such estimation is a subjective process,
and the accuracy of any resource estimate is a function of the quantity and quality of available
data and of the assumptions made and judgments used in engineering and geological
interpretation. Short-term operating factors relating to the Mineral Resources, such as the need
for orderly development of the ore bodies or the processing of new or different ore grades, may
cause the mining operation to be unprofitable in any particular accounting period. In addition,
there can be no assurance that metal recoveries in small scale laboratory tests will be duplicated
in larger scale tests under on-site conditions or during production. Lower market prices, increased
production costs, the presence of deleterious elements, reduced recovery rates and other factors
may result in revision of its resource estimates from time to time or may render the Company’s
resources uneconomic to exploit. Resource data is not indicative of future results of operations.
If the Company’s actual Mineral Resources are less than current estimates or if the Company fails
to develop its resource base through the realization of identified mineralized potential, its results
of operations or financial condition may be materially and adversely affected.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this news release.
Appendix 1: SAMPLE PREPARATION, ANALYSES AND QUALITY CONTROL AND QUALITY
ASSURANCE (QAQC)
After receipt of diamond drill core from the drillers at the drill rig in marked core trays, core was
transported to the Company’s core shed by the site geologist for logging and sampling. After
sample mark up, lithological and geotechnical logging and photography, the core was split
longitudinally in half using a water-cooled rotating diamond blade core saw. The cut core was
replaced into the core tray with the half to be sampled facing upward. The Archimedes method of
weight in air vs weight in water was used to provide relative density measurements on the whole
length of the half core that was to be sampled and then replaced in the core trays.
Air dried samples were placed in pre-numbered sample bags together with pre-printed numbered
sample tickets, which were cross-checked afterwards to prevent sample swaps. Sample bags
were sealed using a plastic cable tie and then placed into poly-weave sacks which were in turn
sealed with plastic cable ties. Each poly-weave sack was marked with a number and the sample
numbers contained within, ready for delivery to the on-site Alphamin-Bisie laboratory (managed
by Anchem) for sample preparation.
At the laboratory, samples were first checked off against the submission list supplied and then
weighed and oven dried for 2 hours at 105 degrees Celsius. The dried samples were crushed by
jaw crusher to 75% passing 2mm, from which a 250g riffle split was taken. This 250g split was
pulverised in ring mills to 90% passing 75?m from which a sample for analysis was taken.
Samples were homogenised using a corner-to-corner methodology and two samples were taken
from each pulp, one of 10g for on-site laboratory preliminary assaying and another 150g sample
for export and independent accredited 3rd party laboratory assaying.
For the initial on-site laboratory assay, 10 grams of pulverised sample is mixed with 2 grams of
binder before press pellet preparation at 20t/psi for 1 minute. Press pellets are analysed in a
desktop Spectro Xepos XRF analyser, twelve at a time, for Sn, Fe, Zn, Cu, Ag, Pb and As along
with a standard, duplicate and blank. The analytical method conducted on the pressed pellet has
an expected 10% precision and an upper detection limit of 70,000ppm and lower detection limit
of 500ppm. Over-limit samples are titrated by wet chemistry with an upper limit validation of 70%
Sn. The on-site laboratory assays are merely an exploration tool and were not used for reporting
the exploration results or Mineral Resource estimation, which are based solely on the ALS assays.
The 150g sample is packaged in sealed paper sample envelopes and packed in a box for export
in batches of approximately 500 samples and prepared for export authorisation with national
authorities. Once authorisation is received, samples are air-couriered to ALS Global in
Johannesburg South Africa, a subsidiary of ALS Limited, which is an independent commercial
analytical facility. ALS operations are ISO 9001:2015 certificated and the Johannesburg office is
ISO 17025 accredited for Chemical Analysis by SANAS (South African National Accreditation
System, facility number T087), although the accreditation does not extend to the methods used
for tin.
Received samples at ALS Johannesburg are checked off against the list of samples supplied and
logged in the system. Quality Control is performed in the way of sieve tests every 50 samples and
should a sample fail, the preceding 50 samples are ground in a ring mill pulveriser using a carbon
steel ring set to 85 % passing 75?m. Samples are analysed for tin using method code ME-XRF05
conducted on a pressed pellet with 10% precision and an upper limit of 5,000ppm. The over-limit
tin samples are analysed as fused disks according to method ME-XRF15c, which makes use of
pre-oxidation and decomposition by fusion with 12:22 lithium borate flux containing 20% Sodium
Nitrate as an oxidizing agent, with an upper detection limit of 79% Sn.
Method code ME-ICP61 (HF, HNO3, HClO4 and HCl leach with ICP-AES finish) is used for 33
elements including base metals. ME-OG62, a four-acid digestion, is used on ore grade samples
for lead, zinc, copper and silver. Both methods are accredited by SANAS.
The program is designed to include a comprehensive analytical quality assurance and control
routine comprising the systematic use of Company inserted standards, blanks and field duplicate
samples, internal laboratory standards and analysis at an accredited laboratory. The pulps were
accompanied by blind QAQC samples inserted into the sample stream by the Alphamin-Bisie
geologists. These comprised blank samples, certified reference materials and pulp duplicates
each at an insertion rate of approximately 5%.
The QAQC results demonstrate that the assay results are both accurate and precise with an
insignificant amount of contamination (in the order of 10pmm Sn on average) and negligible
sampling errors.
Laboratory verification work was conducted by check assays conducted at SGS South Africa (Pty)
Ltd. This included 105 check samples submitted in November 2021. These samples comprised
duplicated pulps from the maiden resource drillholes derived from the sample preparation at the
on-site laboratory. CRMs and blanks to an appropriate level also formed part of the 105-sample
submission. Check assay results showed that there was a near zero overall bias and that inter-
lab precision, after removal of <0.10% Sn samples ,was ~85% within 10% error and ~95% within
20% error. Given the nature of high-grade tin variability and previous knowledge of umpire check
exercises at the operation, these results are considered acceptable.
Appendix 2: SIGNIFICANT INTERCEPTS (0.5% Sn lower threshold)
Hole Easting Northing RL_m Azi (°) Dip (°) From To Sn % Width Sample Position
GPS GPS (m)1 mid_x mid_y mid_z
BGH017 582535 9884822 732 55 -10 237.80 238.80 4.99 1.00 582,732 9,884,966 678.6
BGH018 582535 9884822 732 93 0 141.20 144.35 2.07 3.15 582,691 9,884,820 727.9
145.75 151.00 0.76 5.25 582,696 9,884,820 727.9
BGH019 582535 9884822 732 85 -5 147.00 152.00 2.05 5.00 582,696 9,884,837 715.8
BGH020 582535 9884822 732 84 -15 160.60 164.40 1.45 3.80 582,704 9,884,846 689.3
169.30 171.10 5.42 1.80 582,711 9,884,846 687.7
BGH021 582535 9884822 732 93 -15 109.15 110.25 3.20 1.10 582,654 9,884,821 700.1
164.60 167.32 3.29 2.72 582,708 9,884,818 687.6
BGH022 582554 9884785 732 90 0 75.00 80.53 3.99 5.53 582,633 9,884,784 729.3
109.00 110.00 1.35 1.00 582,664 9,884,785 729.9
119.22 122.10 2.22 2.88 582,676 9,884,785 730.1
BGH023 582535 9884822 732 75 -15 171.43 174.32 1.72 2.89 582,710 9,884,859 683.7
175.85 178.00 1.09 2.15 582,714 9,884,860 683
BGH024 582554 9884785 732 103 -5 127.70 129.60 0.54 1.90 582,679 9,884,749 717.2
137.95 142.00 1.13 4.05 582,690 9,884,746 716.2
BGH025 582535 9884822 732 55 -20 212.25 213.40 0.60 1.15 582,724 9,884,919 662.3
218.00 221.45 2.29 3.45 582,731 9,884,921 660.7
222.70 223.70 13.05 1.00 582,734 9,884,923 659.9
228.00 234.80 2.73 6.80 582,741 9,884,926 658
BGH026 582554 9884785 732 113 -10 103.71 108.00 3.30 4.29 582,649 9,884,735 713.7
134.80 136.45 3.72 1.65 582,676 9,884,722 708.6
161.00 162.50 5.61 1.50 582,699 9,884,711 704.5
BGH030 582554 9884785 732 115 -20 110.00 111.40 7.24 1.40 582,655 9,884,753 692.2
141.90 152.50 4.85 10.60 582,686 9,884,745 680
158.00 161.20 3.61 3.20 582,699 9,884,742 675.3
174.45 175.80 11.03 1.35 582,713 9,884,738 670.5
BGH032 582554 9884785 732 125 -20 177.00 178.72 1.70 1.72 582,692 9,884,684 671.3
182.00 188.25 3.00 6.25 582,697 9,884,679 669.1
190.25 193.00 0.95 2.75 582,702 9,884,676 667.2
194.40 202.00 1.37 7.60 582,707 9,884,672 665.3
203.50 208.00 2.67 4.50 582,713 9,884,668 663.2
BGH034 582554 9884785 732 115 -25 174.80 178.00 11.99 3.20 582,689 9,884,696 653.3
195.70 200.00 1.21 4.30 582,706 9,884,686 644.8
202.37 206.65 1.86 4.28 582,711 9,884,683 642.3
208.00 213.30 1.40 5.30 582,716 9,884,680 640.1
216.25 221.30 1.42 5.05 582,722 9,884,676 637.3
225.65 231.00 0.70 5.35 582,730 9,884,671 634
BGH027 582544 9884822 732 68 -27 212.35 214.00 0.58 1.65 582,729 9,884,879 634
226.00 229.30 1.32 3.30 582,741 9,884,883 628.4
235.45 236.58 1.54 1.13 582,749 9,884,885 625.2
BGH028 582554 9884785 732 90 -10 125.00 126.00 1.72 1.00 582,676 9,884,772 700.9
136.10 137.18 1.85 1.08 582,687 9,884,770 698.4
140.28 142.00 1.03 1.72 582,691 9,884,770 697.4
147.46 151.25 2.88 3.79 582,699 9,884,769 695.5
BGH029 582544 9884822 732 93 -25 126.00 128.35 4.66 2.35 582,663 9,884,826 678.5
178.90 184.05 1.25 5.15 582,713 9,884,827 657.7
193.70 196.05 3.95 2.35 582,726 9,884,827 653
BGH031 582544 9884822 732 75 -25 208.00 211.53 0.99 3.53 582,729 9,884,876 639.9
219.40 222.38 1.16 2.98 582,739 9,884,879 636
BGH033 582544 9884822 732 60 -27 259.00 265.46 7.32 6.46 582,756 9,884,929 612.8
268.53 270.52 1.02 1.99 582,762 9,884,931 610
BGH035 582554 9884785 732 90 -25 152.00 165.00 2.96 13.00 582,686 9,884,816 665
171.00 173.60 1.47 2.60 582,703 9,884,815 657.4
176.60 180.08 2.40 3.48 582,709 9,884,814 654.9
BGH036 582544 9884822 732 65 0 147.45 151.35 2.31 3.90 582,687 9,884,878 724.8
156.63 160.65 0.93 4.02 582,696 9,884,881 724.7
BGH037 582554 9884785 732 105 -30 154.00 157.00 3.81 3.00 582,680 9,884,741 647.5
194.60 197.55 1.54 2.95 582,712 9,884,730 626
207.95 211.18 1.29 3.23 582,723 9,884,726 619.3
216.25 220.15 2.79 3.90 582,730 9,884,723 615.1
222.40 226.70 1.77 4.30 582,735 9,884,721 612.1
BGH038 582544 9884822 732 75 -30 151.70 154.60 5.22 2.90 582,677 9,884,851 654.3
218.30 223.65 3.38 5.35 582,735 9,884,861 621.4
226.70 231.50 1.95 4.80 582,743 9,884,862 617.6
BGH039 582554 9884785 732 100 -22 112.08 113.00 2.12 0.92 582665.1 9,884,755 687.6
116.30 120.95 3.33 4.65 582,661 9,884,753 686.1
145.00 166.00 2.20 21.00 582,696 9,884,744 674.2
174.50 176.00 0.95 1.50 582,713 9,884,739 668.9
BGH040 582544 9884822 732 60 -30 232.00 233.00 0.95 1.00 582,725 9,884,922 618.2
273.70 277.05 3.79 3.35 582,761 9,884,937 600
BGH041 582500 9884847 732 55 -25 340.00 344.50 3.03 4.50 582,807 9,885,002 599.5
BGH042 582544 9884822 732 60 -35 277.35 280.00 1.93 2.65 582,751 9,884,922 569.4
308.50 312.00 0.62 3.50 582,776 9,884,932 552.6
313.00 315.55 1.52 2.55 582,779 9,884,933 550.5
BGH043 582544 9884822 732 100 -10 102.50 104.15 2.69 1.65 582,644 9,884,808 709
123.00 124.00 1.06 1.00 582,663 9,884,805 704.8
163.64 167.00 2.82 3.36 582,704 9,884,798 696.7
BGH044 582500 9884847 710 70 -35 330.00 334.13 1.31 4.13 582,764 9,884,941 533.4
BGH045 582544 9884822 732 100 -20 120.65 121.75 31.55 1.10 582,656 9,884,806 687.4
156.00 159.40 0.56 3.40 582,689 9,884,799 674.7
176.70 183.62 3.24 6.92 582,708 9,884,795 668.1
BGH046 582544 9884822 732 100 -30 195.18 206.00 2.85 10.82 582,712 9,884,795 630.5
212.53 215.18 1.90 2.65 582,723 9,884,793 623.7
218.00 220.60 7.16 2.60 582,728 9,884,792 620.8
225.00 226.00 4.36 1.00 582,733 9,884,791 617.7
BGH047 582565 9884535 718 60 0 121.58 124.57 0.91 2.99 582,653 9,884,879 739.2
147.09 148.09 1.28 1.00 582,675 9,884,889 741.1
BGH048 582567 9884509 727 90 0 140.75 143.05 0.90 2.30 582,708 9,884,496 727.7
146.53 148.00 0.74 1.47 582,713 9,884,495 728
BGH049 582565 9884535 718 65 -15 145.40 147.40 4.27 2.00 582,689 9,884,599 674.5
BGH050 582567 9884509 727 105 -5 160.00 161.38 1.06 1.38 582,722 9,884,469 711.7
BGH051 582565 9884535 718 40 0 134.80 137.00 2.23 2.20 582,662 9,884,630 712.3
151.00 156.30 1.20 5.30 582,675 9,884,642 711.4
164.18 169.45 3.95 5.27 582,685 9,884,651 710.8
171.27 172.57 4.08 1.30 582,688 9,884,655 710.6
BGH052 582567 9884509 727 120 0 205.90 207.10 1.86 1.20 582,732 9,884,385 722.9
BGH053 582565 9884535 718 40 -15 173.73 176.93 9.58 3.20 582,685 9,884,653 669.2
178.55 181.43 4.07 2.88 582,688 9,884,656 667.9
192.41 196.86 3.28 4.45 582,698 9,884,666 664
198.86 206.77 2.45 7.91 582,704 9,884,671 661.8
207.53 209.50 5.04 1.97 582,708 9,884,675 660.3
214.65 216.00 2.32 1.35 582,713 9,884,680 658.6
BGH054 No significant intercepts
BGH055 582565 9884535 718 80 -15 145.00 146.00 0.62 1.00 582,705 9,884,549 682.7
BGH056 No significant intercepts
BGH057 No significant intercepts
BGH058 582565 9884510 727 95 -5 153.35 155.60 1.98 2.25 582,717.3 9,884,501.2 703.9
BGH059 582567 9884536 718 95 0 165.00 166.00 3.63 1.00 582,732.3 9,884,528.3 714.4
BGH060 No significant intercepts
BGH061 582567 9884536 727 130 -10 157.57 159.19 1.22 1.62 582,719 9,884,525 677.7
BGH062 582567 9884537 718 95 -15 154.00 156.00 2.18 2.00 582,695 9,884,589 650.2
BGH063 582782 9884646 829 270 -70 186.25 194.37 0.82 8.12 582,719 9,884,661 650.5
197.42 202.45 1.12 5.03 582,715 9,884,661 641.8
205.00 209.05 0.83 4.05 582,712 9,884,661 635.4
211.13 218.90 2.06 7.77 582,709 9,884,661 628.3
220.40 222.55 0.86 2.15 582,706 9,884,661 622.5
231.00 233.00 0.87 2.00 582,701 9,884,661 613
BGH064 582888 9884976 839 270 -50 220.80 222.60 0.63 1.80 582,746 9,884,976 668.9
BGH065 582913 9885057 819 270 -60 271.00 275.95 2.93 4.95 582,769 9,885,057 586.1
291.56 292.56 1.70 1.00 582,759 9,885,057 570.9
BGH066 582888 9884976 839 270 -60 276.00 278.59 8.49 2.59 582,754 9,884,965 596.1
300.00 301.00 1.78 1.00 582,742 9,884,965 576.6
BGH067 582913 9885057 819 270 -67 295.75 300.47 3.21 4.72 582,789 9,885,065 548.1
303.00 304.62 1.56 1.62 582,786 9,885,065 543.1
337.00 338.00 0.55 1.00 582,769 9,885,068 514.3
BGH068 582913 9885057 819 270 -50 247.00 248.20 2.10 1.20 582,749 9,885,051 633.1
251.80 255.10 1.75 3.30 582,745 9,885,051 628.8
BGH069 582888 9884976 839 270 -70 321.80 324.73 3.84 2.93 582,779 9,884,962 534.7
BGH070 582913 9885057 819 270 -73 331.00 336.35 3.00 5.35 582,802 9,885,040 505.2
BGH071 No significant intercepts
BGH072 582852 9884845 831 270 -67 274.60 279.70 2.70 5.10 582,749 9,884,847 574
290.40 294.80 3.61 4.40 582,742 9,884,847 560
BGH073 582731 9884691 838 280 -60 121.00 123.00 0.72 2.00 582,671 9,884,702 731.9
BGH074 582944 9885130 798 270 -67 278.90 283.93 2.85 5.03 582,810 9,885,137 551.2
285.49 289.10 1.60 3.61 582,807 9,885,138 546.3
294.51 297.30 7.14 2.79 582,802 9,885,139 539.1
299.65 303.34 0.53 3.69 582,799 9,885,139 534.5
BGH075 582731 9884691 838 270 -70 115.40 116.65 6.76 1.25 582,690 9,884,690 729.4
119.50 120.80 15.22 1.30 582,688 9,884,690 725.7
125.09 129.80 3.56 4.71 582,684 9,884,690 719.3
162.55 164.63 8.94 2.08 582,667 9,884,689 687.8
BGH076 582752 9884801 849 300 -40 108.00 109.00 0.84 1.00 582,682 9,884,844 779.6
118.80 119.45 3.71 0.65 582,675 9,884,848 772.7
128.15 131.00 2.82 2.85 582,668 9,884,852 765.8
136.70 137.00 0.97 0.30 582,663 9,884,855 761
BGH077 582944 9885130 798 270 -72 316.84 321.20 2.57 4.36 582,830 9,885,130 501.7
323.00 328.36 2.56 5.36 582,827 9,885,130 495.8
329.06 330.13 0.52 1.07 582,825 9,885,130 492.4
335.25 337.36 9.63 2.11 582,822 9,885,130 486.5
339.77 340.07 7.07 0.30 582,820 9,885,131 483.4
BGH078 582752 9884801 849 280 -40 102.00 106.00 1.88 4.00 582,674 9,884,816 782.6
108.00 109.00 0.62 1.00 582,671 9,884,817 779.7
115.00 117.15 0.80 2.15 582,665 9,884,818 774.8
BGH079 582852 9884845 831 270 -73 290.15 294.40 1.00 4.25 582,765 9,884,842 552.6
296.30 302.30 9.46 6.00 582,763 9,884,841 546.1
304.81 305.70 18.75 0.89 582,761 9,884,841 540.5
312.00 313.00 1.08 1.00 582,758 9,884,841 533.8
316.90 321.63 4.65 4.73 582,755 9,884,840 527.5
322.57 328.00 5.41 5.43 582,753 9,884,840 522
328.95 329.48 1.59 0.53 582,751 9,884,840 518.4
340.68 341.42 4.29 0.74 582,747 9,884,839 507.6
BGH080 582944 9885130 798 270 -75 339.90 343.60 1.05 3.70 582,853 9,885,141 469.2
345.00 346.55 4.11 1.55 582,851 9,885,141 465.5
360.70 361.00 11.95 0.30 582,846 9,885,143 451.5
BGH081a 583022 9885299 776 270 -50 269.00 274.56 1.99 5.56 582,838 9,885,306 578.6
275.56 275.86 0.64 0.30 582,835 9,885,307 576.0
BGH082a 583013 9885209 752 270 -50 263.83 266.30 3.43 2.47 582,836 9,885,222 556.0
268.35 269.15 3.32 0.80 582,833 9,885,223 553.5
276.97 277.27 15.65 0.30 582,827 9,885,224 547.9
BGH083 No significant intercepts
BGH084 583023 9885299 776 270 -57 278.95 280.90 6.25 1.95 582,857 9,885,307 552.8
283.06 286.31 1.28 3.25 582,854 9,885,307 549.2
BGH085 583023 9885299 776 270 -65 294.65 298.35 0.83 3.70 582,890 9,885,304 512.9
BGH086 583013 9885208 752 270 -57 275.35 280.78 3.07 5.43 582,847 9,885,214 530.1
286.05 286.51 18.90 0.46 582,841 9,885,215 524.4
MND001 No significant intercepts
MND002 No significant intercepts
MND003 No significant intercepts
MND004 583392 9886283 682 270 -52 524.76 525.06 0.67 0.30 582,994 9,886,250 347.0
MND005 No significant intercepts
MND006 No significant intercepts
MND007 583100 9886210 726 270 -75 402.00 402.45 0.58 0.45 582,987 9,886,211 340.5
MND009 582881 9886200 752 270 -65 96.35 96.75 2.28 0.40 582,842 9,886,200 667.3
MND010 No significant intercepts
MND011 583103 9886211 726 270 -83 419.26 428.00 21.85 8.74 583,021 9,886,194 312.7
430.60 438.90 17.52 8.30 583,018 9,886,193 302.0
MND012 582950 9886140 765 270 -60 64.70 65.35 12.20 0.65 582,916 9,886,142 699.8
1. Apparent widths, not true thickness
Appendix 3: Checklist of Assessment and Reporting Criteria
Drilling techniques All drillholes were diamond drill cored and drilled from surface (most
intersections drilled using NQ size), holes drilled orientated in an east-west
direction were angled between -60° and -70°. Holes collared in the west
were drilled out in fan patterns into the side of a hill and angled between 0°
and minus 35°.
Logging All of the drillholes were geologically logged by qualified geologists. The
logging is of an appropriate standard for grade estimation.
Drill sample recovery Core recovery in the mineralised zones was observed to be very good and
is on average greater than 97%.
Sampling methods Half core samples were collected continuously through the mineralised
zones after being cut longitudinally in half using a diamond saw. Drillhole
samples were taken at nominal 1 m intervals, which were adjusted to
smaller intervals in order to target the cassiterite vein zones. Lithological
contacts were honoured during the sampling. MSA’s observations indicated
that the routine sampling was performed to a reasonable standard and is
suitable for evaluation purposes.
Quality of assay data and At the on-site ABM laboratory (managed by Anchem), samples were first
laboratory tests checked off against the submission list supplied and then weighed and oven
dried for 2 hours at 105 degrees Celsius. The dried samples were crushed
by jaw crusher to 75% passing 2mm, from which a 250g riffle split was
taken. This 250g split was pulverised in ring mills to 90% passing 75?m
from which a sample for analysis was taken. Samples were homogenised
using a corner-to-corner methodology and two samples were taken from
each pulp, one of 10g for on-site laboratory assaying and another 150g
sample for export and independent accredited 3rd party laboratory
assaying.
Received samples at ALS Johannesburg are checked off against the list of
samples supplied and logged in the system. Quality Control is performed by
way of sieve tests every 50 samples and should a sample fail, the preceding
50 samples are ground in a ring mill pulveriser using a carbon steel ring set
to 85 % passing 75?m. Samples are analysed for tin using method code
ME-XRF05 conducted on a pressed pellet with 10% precision and an upper
limit of 5,000ppm. The over-limit tin samples are analysed as fused disks
according to method ME-XRF15c, which makes use of pre-oxidation and
decomposition by fusion with 12:22 lithium borate flux containing 20%
Sodium Nitrate as an oxidizing agent, with an upper detection limit of 79%
Sn.
Prior to the 2021 drilling the assays were also conducted at ALS Global in
Johannesburg where samples were analysed for tin using fused disc ME-
XRF05 with 10% precision and an upper limit of 10 000 ppm. This was
reduced to 5,000 ppm from 2014 onwards. Over limit samples were sent to
Vancouver for ME-XRF10 which uses a Lithium Borate 50:50 flux with an
upper detection limit of 60% and precision of 5%.
ME-ICP61, HF, HNO3, HCL04 and HCL leach with ICP-AES finish was
used for 33 elements including base metals. ME-OG62, a four-acid
digestion, was used on high grade samples for Pb, Zn, Cu & Ag.
External quality assurance of the laboratory assays for the Alphamin
samples was monitored. Blank samples (186), certified reference materials
(264) and duplicate samples (200) were inserted with the field samples
accounting for approximately 11% of the total sample set.
The QAQC measures used by Alphamin revealed the following:
• Blank samples indicated that no significant contamination occurred
overall. Low levels of contamination (mostly <200 ppm Sn) mostly
occurred, however 5 values between 229 ppm and 1,285 ppm
were returned. Given the high grades at Bisie, the levels of
contamination are not significant.
• Five different CRMs were used with expected values between
0.18% and 31.42% Sn. The lower grade CRMs were prepared by
Ore Research and Exploration (OREAS) and the two high grade
CRMs (4.19% and 31.42% Sn) by the Bureau of Analysed
Samples Ltd (BCS). In general, ALS returned values within the
tolerance limits (three standard deviations) for the OREAS CRMs,
although slightly lower than the expected value. Assays of the
highest grade BCS CRM were mostly outside of the three standard
deviation limits but within ±4%of the expected value. For the
5.07% Sn BCS CRM, assays were consistently lower than the
expected value by as much as 7%. Overall, the CRMs results
indicate a slight negative bias for the ALS assays.
• Coarse duplicates show mostly excellent correlation, indicating
minimal error in the process and a high degree of repeatability.
Verification of sampling and The mineralisation in thirteen of the drillholes completed in 2021 at Mpama
assaying South were visually verified during a site-visits by the QP in August 2021
and several of the initial drillholes were examined during earlier site visits to
Bisie. The QP observed the mineralisation in the cores and compared it with
the assay results. It was found that the assays generally agreed with the
observations made on the core. Core photos from the drilling programme
have regularly been provided to the QP for inspection.
105 pulp duplicates were sent to SGS (Johannesburg) in November 2021
for confirmation assaying.
• The pulp duplicates showed acceptable correlation with the ALS
assays at both high- and low-grade ranges with an overall bias of
near zero.
o Average bias for grade ranges > 1% is less than 1%.
o Tendency for ALS to be higher (~5%) for the grade ranges
less than 1%.
• Inter-lab precision (after removal of <0.10%) is 85% within 10%
error and 95% within 20% error
Location of data points The drillhole collar positions were surveyed using a differential GPS.
Downhole surveys were completed using a multishot down-hole survey
instrument (Reflex EZ-Track), or north seeking gyro (Reflex EZ-Gyro /
Reflex Gyro Sprint-IQ).
Tonnage factors (in situ bulk Relative density measurements were made on the majority of recent
densities) drillhole samples using the Archimedes Principle of weight n air versus
weight in water. A regression formula of tin grade against relative density
was developed and applied to the samples that did not have direct
measurements. The assigned specific gravity was interpolated into the
block model using ordinary kriging.
Data density and distribution A total of 82 holes were drilled in Mpama South. Holes were drilled steeply
from east to west, along section lines spaced approximately 60 m to 80 m
apart. Several sets of holes were drilled in a fan pattern into the side of a
steep hill, with orientations spanning from the northeast to the southeast
(from azimuth 045° to 125°). These drillholes fans intersect the
mineralisation 25 m to 40 m apart in most of the Mineral Resource area.
Database integrity Data was provided as Excel files. MSA completed spot checks on the
database and is confident that the Alphamin database is an accurate
representation of the original data collected.
Dimensions The mineralisation consists of seven zones, with a total extent of 800 m
along strike. The two main zones, MZ1 and MZ2, have a strike length of 600
m and 280 m down-dip, accounting for 77% of the Mineral Resource.
The zones occurring in the footwall and hangingwall of the MZ1 and MZ2
tend to be narrower and irregular in shape with strike lengths from 100 m to
300 m. MZ6, which is located to the south has a strike length of 270 m and
a dip length of 110 m.
Geological interpretation The mineralised intersections in drill core are clearly discernible. The
Mineral Resource is interpreted to occur as irregular tabular mineralised
zones, dipping 65-70° to the east, containing several narrow veins and
disseminations of cassiterite. The mineralised zones are hosted in chlorite
schist that is the result of intense hydrothermal alteration associated with a
fracture system.
The two main zones of the Mineral Resource (MZ1 and MZ2) are
continuous for almost 600 m, with average thicknesses of 4.3 m and 3.3 m
respectively. However, the thicknesses of these two zones vary from as little
as 1 m, up to 14 m thick.
Three smaller zones (MZ3 to MZ5) occur in the footwall of the main
mineralisation which progressively become narrower, moving away from the
main zone. MZ3 thickness ranges from 1 m to 9 m with an average
thickness of 1.5 m. MZ4 has an average thickness of 1 m, attaining a
maximum thickness of 5 m. MZ5 has an average thickness of 1.2 m,
ranging from 1 m to 5 m. All zones become narrower along the edges,
where they pinch-out.
A small, narrow zone (MZ7) occurs in the hangingwall of the main
mineralisation with an average thickness of 0.5 m and a maximum thickness
of 4 m.
MZ6, which occurs to the south, tends to be lower in grade and has an
average thickness of 4 m, ranging from 1 m up to 9 m.
A three-dimensional wireframe model was created for the seven zones of
mineralisation based on a grade threshold of 0.40% Sn. The MZ1 and MZ2
make up the main zone, which are the most consistent zones and occur
within a persistent chlorite schist. Narrower less continuous zones occur
above and below the main zone within chlorite-mica schists.
Domains The mineralisation was modelled as seven tabular zones containing
irregular vein style mineralisation. A hard boundary was used to select data
for estimation in order to honour the sharp nature of vein boundaries.
Compositing Sample lengths were composited to 1 m by length and density weighting.
Statistics and variography Statistics for the seven estimation domains show distributions that are
positively skewed with coefficients of variation (CV) ranging from 1.3 to
1.96, the only exception being domain MZ7 which shows lower variability
due to very few composites resulting in a CV of 0.79.
The two main zones (MZ1 and MZ2) have similar average tin grades
(2.22% and 2.11% respectively). The smaller, footwall zones (MZ3 to MZ5)
are higher in tin grade with averages ranging from 3% to 4.41% while MZ6
and MZ7 are lower in tin grade, with an average of 0.63% and 1.07%
respectively.
Normal Scores semivariograms were calculated in the plane of the
mineralisation, down-hole and across strike. Variograms were modelled for
tin, with a range of 40 m within the plane of mineralisation and with a range
of 3 m across the structures.
Top or bottom cuts for grades Top caps were applied to outlier values, identified as breaks in the
cumulative, probability plots.
Data clustering Data clustering occurs where the fan drilling, collared on the western side of
the deposit, intersect the surface drilling collared in the east, resulting in a
data spacing of 25 m to 40 m towards the centre of the deposit. Outside of
this area, the grid spacing becomes more regular, 60m to 80 m along strike
and 50 m down-dip.
Block size A rotated block model with a parent cell of 10 mX by 10 mY by 2 mZ was
used. Sub-celling was used to divide the parent cells to a minimum sub-cell
of 1 mX by 1mY by 0.2 mZ to closely fit the narrow portions of the vein
structures
Grade estimation Tin, copper, lead, zinc, silver, arsenic and density were estimated using
ordinary kriging. A minimum number of 4 and a maximum of 10 one metre
composites were required for the tin and density estimates. A minimum of 4
and maximum of 8 composites were used for the other elements.
Estimation was carried out in three passes, with the first pass using search
volumes coinciding with the variogram ranges. A second pass estimate
expanded the search volumes by a factor of 1.5 to estimate blocks where
insufficient samples were present for an estimate in the first pass. Where
blocks remained un-estimated from the first two passes, a third pass, using
an expansion factor of 10 was used to ensure all blocks in the model
received a grade and density estimate.
Dynamic Anisotropy was used to orientate the search volumes to the strike
and dip of the individual mineralised zones.
Resource classification Indicated Mineral Resources were declared where the drillhole spacing is
approximately 40 m and where the geological model has low variability. The
remainder of the interpreted model was classified as Inferred Mineral
Resources, corresponding to areas informed by drilling spaced 50 m to 80
m apart with a maximum extrapolation of 20 m from the nearest drillhole.
Mining cuts and cut-off grade A minimum of 1 m was applied to the mineralisation model. The thickness,
assumptions. grade and steep dip implies that the Mineral Resource can be extracted
using established underground mining methods similar to those applied at
Mpama North.
A 1% cut-off grade was applied based on the Mpama North costs and
prevailing tin price.
Isolated blocks above cut-off grade in dominantly low-grade areas of the
model were not included in the Mineral Resource
Metallurgical factors or The tin mineralisation occurs as cassiterite, an oxide of tin (SnO2). At
assumptions Mpama North gravity separation is used to produce a tin concentrate. The
Cu, Zn and Pb mineralisation occurs as sulphides, which are removed by
flotation to create the cassiterite product. It is assumed that similar
processes will be used to process the Mpama South mineralisation.
Legal aspects and tenure Alphamin through its wholly owned DRC subsidiary, Alphamin Mining Bisie
SA, has a Mining License PE 13155 which includes the Bisie Tin Mine.
Alphamin has an 80.75 percent interest in ABM. The Government of the
Democratic Republic of Congo (GDRC) has a non-dilutive, 5% share in
ABM.
Audits, reviews and site The following review work was completed by MSA:
inspection • Inspection of approximately 20% of the mineralised core
intersections used in the Mineral Resource estimate.
• Database checks.
• Inspection of Mpama South drill sites in August 2021.
• On-site review of the exploration processes.
• Laboratory inspections.
Date: 07-03-2022 02:30:00
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