PERRIERI OFFICE SUITES, C2-302, Level 3, Office Block C, La Croisette, Grand Baie 30517, Mauritius The above media statement and accompanying material for media use are issued by ALPHAMIN RESOURCES CORP. without embargo unless an embargo is indicated above
NEWS RELEASE
C/o ADANSONIA MANAGEMENT SERVICES LIMITED, Suite 1,
PERRIERI OFFICE SUITES, C2-302, Level 3, Office Block C,
La Croisette, Grand Baie 30517, Mauritius
The above media statement and accompanying material for media use are issued by
ALPHAMIN RESOURCES CORP. without embargo unless an embargo is indicated above
6884807 v5
OPERATIONAL UPDATE
MAURITIUS – December 23, 2019 – Alphamin Resources Corporation (AFM:TSXV ,
“Alphamin”, or the “Company”) is pleased to provide the following operational update:
Step change in processing recoveries to 70% following plant modifications
Q4 2019 tin production expected at upper end of the previous guidance range
Processing solution to high arsenic confirmed for implementation early January 2020
Bridge repair progressing with completion expected end January 2020
Provisional invoicing for tin concentrate on hand during bridge repair period finalised
Interim logistical solution to initiate concentrate transport secured
Inbound flow of major consumables maintained
Certain financial information is reported in this n ews release using non-IFRS measures. See
Non-IFRS Financial Performance Measures below.
Q4 2019 Production Update
Recent improvements in the plant operating practice have resulted in a step change in
processing recoveries to ~70% (ultimate target: 72% ), despite the impact of high arsenic in
feed encountered in October and November. Arsenic in feed has dropped off in recent weeks.
Changes were made to the jig circuit which improved jig recoveries, increased the mass pull
to the gravity section resulting in less tin fines and ultimately increased recoveries of tin.
The gravity circuit was reconfigured to introduce 100% of the production into the flotation plant
and the controls in the flotation plant were optimi zed to improve removal of impurities in the
final product. These changes have partially addressed the higher than expected arsenic values
in the concentrate. Laboratory test work and mineralogical investigations have revealed that a
relatively simple addition to the reagent suite is expected to further reduce the levels of
deleterious arsenic in the final concentrate. The new reagent suite will be implemented by early
January 2020 with a significant reduction in impurities in concentrate expected.
We expect contained tin production for the quarter ending December 2019 at the higher end
of our previous guidance range of between 2,000 ton s and 2,200 tons. As a result, our Q4
2019 AISC per ton of contained tin is expected at the lower end of our previous guidance range
of US$12,000 to US$13,000.
The above media statement and accompanying material for media use are issued by
ALPHAMIN RESOURCES CORP. without embargo unless an embargo is indicated above
6884807 v5
Bridge Repair Update
The repair work on the previously reported collapse of the bridge on the main national road
from which the Bisie project is accessed is progressing well with completion expected towards
the end of January 2020. The Company has secured a number of initiatives aimed at
maintaining the flow of major consumables to the pr oject, and as a result of these initiatives,
the production of concentrate has continued uninterrupted while the bridge is under repair.
As previously announced in Alphamin’s Management’s Discussion and Analysis for the three
months ended September 30, our tin concentrate off-take customer has agreed to provisional
invoicing ex-mine, which will improve the Company’s liquidity during the bridge repair period.
This contract has been signed and the provisional i nvoice of US$12.6 million issued and
settled.
The Company has secured the neccesary approvals to implement a logistical solution that will
allow for tin concentrate to cross the river while the bridge is being repaired at a rate exceeding
production. This solution has commenced on 18 December and will re-instate the Company’s
revenue stream on arrival of trucks in Kampala, Uga nda irrespective of how long the bridge
repair period may take.
Company Guidance for the financial year ending December 2020
We expect contained tin production of between 9,000 and 10,000 1 tons for the year ending
December 2020 with run-of-mine tin grades averaging 4% and overall plant recoveries at 72%.
Contained tin sales should be approximately 2,000 t ons higher than production as we re-
instate outbound logistics following the bridge collapse in Q4 2019.
We expect AISC per ton of contained tin of between US$10,000 and US$12,000 1 for the year
ending December 2020.
Revised Life of Mine Production Profile
Following the previously announced change in mining method, the revised life-of-mine design
and scheduling have now been finalised. An updated NI 43-101 technical report is being
prepared for expected release in January 2020.
1 Production and cost guidance is based on certain estimates and assumptions, including but not limited to:
Mineral Resources and Mineral Reserves, geological formations, grade and continuity of deposits and
metallurgical characteristics and operating costs.
The above media statement and accompanying material for media use are issued by
ALPHAMIN RESOURCES CORP. without embargo unless an embargo is indicated above
6884807 v5
Qualified Person
Mr. Vaughn Duke, an independent consultant to Alphamin, is a qualified person (QP) under NI
43-101 and has reviewed and approved the scientific and technical information contained in
this news release.
FOR MORE INFORMATION, PLEASE CONTACT:
Maritz Smith
CEO
Alphamin Resources Corp.
T el: +230 269 4166
E-mail: [email protected]
USE OF NON-IFRS FINANCIAL PERFORMANCE MEASURES
This news release refers to the following non-IFRS financial performance measures: Earnings
before interest, taxes, depreciation and amortizati on (“EBITDA”) and All-In Sustaining Cost
(“AISC”).
These measures are not recognized under IFRS as the y do not have any standardized
meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures
presented by other issuers. We use these measures i nternally to evaluate the underlying
operating performance of the Company for the reporting periods presented. The use of these
measures enables us to assess performance trends an d to evaluate the results of the
underlying business of the Company. We understand t hat certain investors, and others who
follow the Company’s performance, also assess performance in this way.
We believe that these measures reflect our performa nce and are useful indicators of our
expected performance in future periods. This data is intended to provide additional information
and should not be considered in isolation or as a su bstitute for measures of performance
prepared in accordance with IFRS.
Cash Costs
This measures the cash costs to produce a ton of pa yable tin. This measure includes mine
operating production expenses such as mining, proce ssing, administration, indirect charges
(including surface maintenance and camp), and smelting, refining and freight, distribution and
The above media statement and accompanying material for media use are issued by
ALPHAMIN RESOURCES CORP. without embargo unless an embargo is indicated above
6884807 v5
royalties. Cash Costs do not include depreciation, depletion, and amortization, reclamation
expenses, capital sustaining and exploration expenses.
AISC
This measures the cash costs to produce a ton of payable tin plus the capital sustaining costs
to maintain the mine, processing plant and infrastr ucture. This measure includes the Cash
Cost per ton and capital sustaining costs divided b y tons of payable tin produced. All-In
Sustaining Cost per ton does not include depreciati on, depletion, and amortization,
reclamation and exploration expenses.
See “Cautionary Notes Regarding Forward-Looking Statements” below as well as “Use of
Non-IFRS Financial Performance Measures” in our Management’s Discussion and Analysis
for the three months ended June 30, 2019.
CAUTION REGARDING FORWARD LOOKING STATEMENTS
Information in this news release that is not a stat ement of historical fact constitutes forward-
looking information. Forward-looking statements con tained herein include, without limitation,
statements relating to costs of production, production volumes and anticipated tin grades and
processing recoveries. Forward-looking statements a re 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 statement s. Accordingly, readers should not place
undue reliance on forward-looking statements. Altho ugh Alphamin has attempted to identify
important factors that could cause actual results t o differ materially from those contained in
forward-looking statements, there may be other fact ors that cause results not to be as
anticipated, estimated or intended. Factors that ma y cause actual results to differ materially
from expected results described in forward-looking statements include, but are not limited to:
Uncertainties associated with Alphamin’s resource a nd reserve estimates, uncertainties
regarding estimates of the expected mined tin grade s, processing plant performance and
recoveries, events causing actual operating expendi ture to be different to that forecasted,
uncertainties regarding global supply and demand fo r tin and market and sales prices,
uncertainties with respect to social, community and environmental impacts, adverse political
events, uncertainties with respect to optimization opportunities for the mine, uncertainties with
respect to the impact of the announced bridge collapse on operational flow and liquidity 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 for ward-looking statements, whether as a
result of new information, future events or results or otherwise, except as required by
applicable securities laws.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined
in the policies of the TSX Venture Exchange) accept s responsibility for the adequacy or
accuracy of this news release.