AfriTin Mining Ltd (AIM:ATM, OTC:AFTTF) released the results of an internal preliminary economic assessment (PEA) for the Phase 2 expansion of its poymetallic Uis mine in Namibia.
The assessment showed the project to have an after-tax net present value at an 8% discount of US$2.1bn (£1.7bn), and an internal rate of return of 75%,
It’s envisaged that tin, lithium and tantalum would all be mined in Phase 2, resulting in annual gross revenue of US$880mln.
Uis has already shown itself to be a successful producer in Phase 1, but the new numbers mark a significant step up.
Capital expenditure for Phase 2 is set at US$440mln.
"I am delighted to present the preliminary economic assessment for Phase 2 at our flagship Uis asset in Namibia,” said AfriTin chief executive Anthony Viljoen.
“This PEA shows outstanding economics and returns for the expansion and allows us to move forward with excitement to a full bankable feasibility. The fact we have successfully brought Phase 1 into production allows us to significantly de-risk phase 2 from the considerable learnings in building a new mine. Phase 2 will see AfriTin produce globally significant volumes of tin, lithium and tantalum which are vital in meeting the demands of the transition to a new efficient greener technology future."
The historic Uis Mine in Namibia was owned and operated by ISCOR between 1958 and 1991 as a tin mine. AfriTin set out to re-establish the operation in two phases: Phase 1 is a low capital, cash generating initial production facility, serving as a pilot for Phase 2, which is planned as a scaled-up version of the initial phase.
Both phases also aim to exploit the tantalum and lithium by-product potential of the deposit. The company has successfully established the tin producing circuits of Phase 1, with the by-product circuits currently in the design and testing stages.