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UPDATE - Bushveld Minerals gets more time to look at Zaaiplaats dump

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Bushveld Minerals (LON:BMN) has been given more time to carry out due diligence on the Zaaiplaats Tin Tailings Dump, it revealed.

Following the announcement of the potential acquisition of the old dumps on March 25 this year, the firm has agreed with the owners to extend the term of  due diligence and evaluation by a further six weeks to June 30, 2014.

"The extension will allow Bushveld to complete the various tests underway to determine the potential commercial viability of processing the Zaaiplaats Dump. The terms announced on 25 March remain otherwise the same," the company said in a brief statement.

The Zaaiplaats tin tailings dump is close to, and between the Groenfontein and the Zaaiplaats hard rock deposits, on which Bushveld already has a combined 18,477 tonne contained tin resource. 

The firm has said the location “gives Bushveld scope to add an early tailings-first production scenario to our Mokopane tin project, with the potential of materially enhancing the economics of the Mokopane Tin Scoping Study."

Following the statement, broker RFC Ambrian noted that the viability tests will be a significant milestone for the firm.

"While the endowment of tin mineralisation at the projects is not in question (and would certainly justify a development), these operations were previously mining tin from high-grade pipe-like mineralisation and from lower-grade disseminated mineralisation occurring near the upper parts of a granite sheet. 

"The high-grade pipes have been mined out, so Bushveld needs to demonstrate that the low-grade ore can be economically mined. We await results for both this proposed acquisition and its portfolio of other tin assets," it said.

Bushveld shares gained 4.08% to 3.825p.

Quick facts: Bushveld Minerals Ltd

Price: 20.725 GBX

LSE:BMN
Market: LSE
Market Cap: £238.95 m
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