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Kasbah Resources - Exposure to the Tin Market

Kasbah Resources Limited (ASX:KAS) was listed on the Australian Stock Exchange on 27th April 2007 with the objective of bringing the Achmmach tin project in northern Morocco into commercial production. After completing the major evaluation steps and analysis, Kasbah Resources Limited (ASX:KAS) is in the final stages of preparing a definitive feasibility study to develop a 750ktpa underground mine and associated processing facility. Kasbah intends to produce an average of 4,500tpa of tin ore in concentrate (~1.3% of world production) over a 10 year mine life, mining current reserves, with  expectations of extending mine life through further resource conversion.

A key issue moving through calendar year 2018 will be the source of funding for the construction of Achmmach. As at the time of writing the company has approximately A$3.1M in cash with debt of A$1M owed to its main shareholder Pala Investments.
Assuming all inclusive initial capital costs of ~US$100M and if it can be agreed to by shareholders, JV partners and banks that a 50/50 debt to equity split is practical, then Kasbah would need to raise equity capital of ~US$37.5M (A$48M).

Full report is available via Capital Network website
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Kasbah Resources Timeline

December 06 2016

Related Researches

June 26 2017

Agreement with a global major: Global major gold miner, Newmont, has recently entered into an agreement with Greatland (GGP.LON) such that Newmont will have access to Greatland’s Ernest Giles gold project for a period of 6 months, and is able to apply their proprietary exploration methods (which, we understand, are ideally suited for identifying large gold systems under cover). Overall, the key point of note for investors is that this commitment from Newmont is a strong validation of the potential exploration upside in Ernest Giles. Typically, global major of this size would be unlikely to be involved in a project unless they saw potential for a large scale resource. News flow from Newmont’s results will be key to Greatland Gold shares over this 6 month period.

June 26 2017

Thor Mining (THR.LON) is an exploration and development company with an advanced tungsten/molybdenum project poised for development; and exciting lithium and tungsten exploration projects. Thor is listed on the Alternative Investment Market (AIM) in London and the Australian Stock Exchange (ASX).

July 31 2017

Medgold Resources Corp. (MED.CVE) is a European-focused TSX-V listed exploration and development company targeting gold properties in central and southern Serbia. The company is run by a highly experienced management team with a successful track record of building value in resource companies. Medgold is aiming to become a leading European gold company.


Serbian near surface targets: Medgold (MED.CVE) possesses significant acreage in the highly prospective exploration regions of Central and Southern Serbia. Medgold has already seen encouraging near-surface results for precious metals in underexplored regions of the Serbo-Macedonia Belt for precious metals (e.g. 40m sawedchannel sample @ 8.3 g/t Au)

A well-funded exploration program: The company has a well-funded exploration program, achieved through a savvy alliance and option agreement with a larger partner (TSX- and NYSE-listed silver producer, Fortuna Silver Mines @US$750m mkt cap). This significantly reduces the potential risk of unknown equity dilution for prospective shareholders, as the potential asset/project dilution is very clearly defined through the option agreements. Furthermore, the optioning of some of the Serbian targets (as well as the direct equity ownership stake of 24% in Medgold) by Fortuna, provides investors with strong validation that Medgold’s exploration ground looks prospective.

The best of both worlds: Smaller gold exploration companies generally tend to fall into two buckets. Either with exploration assets which are outcropping/near surface and high grade; but located in relatively unstable, ‘frontier’ countries. Or with lower grade, deep cover exploration targets, but located in stable jurisdictions. A key feature of Medgold for potential investors, is that it is targeting the near surface, high grade deposits, but also is located in a stable and well-understood jurisdiction and results from the Tlamino Project demonstrate this point. Thus we would consider it attractively placed versus peers on a risk-reward basis.

Focused management: Medgold is in the process of disposing of its Portuguese exploration assets to focus on the highly prospective Serbian assets; where management is increasingly looking to both further define existing explorations targets, and also expand the company’s land holdings. Too often one sees mineral exploration companies spend too much time and too much cash on trying to get results out of land holdings; and we like that Medgold management have shown the discipline to cut assets when they believe the potential upside has become limited.

What to watch for: Newsflow on positive exploration results in Serbia will be a key share price driver.


Medgold Resources Corp. is a European-focused TSX-V listed exploration and development company targeting gold properties in central and southern Serbia. The company is run by a highly experienced management team with a successful track record of building value in resource companies. Medgold is aiming to become a leading European gold company.

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