Atlantic Tin has announced a sale and purchase agreement with African mine operator Managem S.A. to acquire the Moroccan El Hammam mine and exploitation licence neighbouring Atlantic Tin’s Achmmach and Bou el Jaj licences.
The acquisition includes Managem’s subsidiary Société Anonyme d’Entreprises Minières (SAMINE) and its assets, providing Atlantic Tin with an existing processing plant that can be renovated and upgraded to produce a tin concentrate from Achmmach ores. This is expected to reduce initial development capital and decrease the project’s environmental and social impact.
In addition to the mine and beneficiation plant, Atlantic Tin will gain SAMINE’s exploitation licence, which lies directly between the company’s Achmmach and Bou el Jaj tenements. Atlantic Tin CEO, Simon Milroy, commented that the acquisition is a “transformational event for the Achmmach Tin Project and Atlantic Tin”.
“The existing processing facilities and infrastructure at SAMINE will be refurbished and new processing equipment will be added to adapt the SAMINE processing plant to treat the tin ore. The use of the existing facilities and infrastructure at SAMINE will result in a reduced capital cost to bring the Achmmach Tin Project into production.”
The El Hammam fluorite mine, located 7 km from Achmmach, closed in 2021. The surrounding exploitation licence is considered prospective for additional tin deposits alongstrike between Achmmach and Bou el Jaj, with exploration set to commence immediately.
Atlantic Tin will conduct a scoping study to evaluate the combined project configuration with mining at Achmmach and processing at SAMINE. A definitive feasibility study is targeted for completion by the end of 2024, based on an 18-month construction period with tin production commencing in 2026 and ramping up to 900 ktpa ore.
The company’s 2021 Resource Update reported that Achmmach hosts resources of 22.4 Mt at 0.70% Sn for 156 kt contained tin in the Measured & Indicated categories. A 2018 DFS gave an overall tin recovery rate of 77%, which will yield approximately 4,500 t tin-in-concentrate per annum at a concentrate grade averaging 60% Sn. The 2020 scoping study indicated the potential to extend the 10-year mine life to 20 years and the possibility of an integrated smelter.
The company has extended its loan agreement with Pala to June 2025 to provide sufficient liquidity to fund the acquisition and feasibility study.
Our view: The acquisition of the beneficiation plant at El Hammam and the expected reduction in initial capital costs for the Achmmach project is positive for Atlantic Tin and its stakeholders. We eagerly await the definitive feasibility study.
Atlantic Tin Ltd is a member of ITA’s Explorers & Developers Group.
