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
ALPHAMIN DISCUSSES KEY TECHNICAL OUTCOMES FROM THE UPDATED
TECHNICAL REPORT
MAURITIUS – February 20, 2020 – Alphamin Resources Co rp. (AFM:TSXV, “Alphamin”, or
the “Company”) wishes to highlight some of the key technical results of its newly filed updated
NI 43-101 technical report for the Bisie Tin mine located in the Democratic Republic of Congo.
The results include an improved Life of Mine profil e and changes in Mineral Reserves and
Resources.
Updated Mineral Resources:
Mineral Resources were updated as at 30 June 2019. The previous Mineral Resource estimate
was as of 9 May 2016. The table below summarises the changes in Mineral Resources for the
Mpama North orebody.
Changes in Mineral Resource at 0.50% Sn Cut-Off Grade, 30 June 2019
Classification Quantity (Mt) Grade (%) Tin Content (kt)
201 6 2019 2016 2019 2016 2019
Measured Resources 0.46 0.33 4.31 4.75 19.6 15.6
Indicated Resources 4.14 3.99 4.55 4.59 188.4 183.4
Inferred Resources 0.54 0.48 4.25 4.57 22.8 21.8
Total Mineral
Resources 5.14 4.80 4.50 4.60 230.8 220.8
Percentage change -6.6% 2.3% -4.3%
1. All tabulated data has been rounded and as a result minor computational errors may occur.
2. Mineral Resources, which are not Mineral Reserves, have no demonstrated economic viability.
3. Mineral Resources are reported inclusive of Mineral Reserves.
4. Alphamin has an 80.75 percent interest in ABM. The Gross Mineral Resource for the Project is reported.
5. 2019 figures reflect depletion by mining from mi ne surveys as at 30 June 2019 and an estimate of the extent
of artisanal mining to 725 RL.
The decrease of 10kt in contained tin is attributab le as to 2.4t from depletion through mining
activities by 30 June 2019 and 7.7t following a revi sed interpretation of the artisanal mining
base. No other changes have been made to the Minera l Resource, no exploration data has
been added to the database and cut-off grades have remained the same.
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
Updated Mineral Reserves:
Mineral Reserves were updated as at 31 December 201 9 to take account of the revised Life
of Mine (LOM) plan following a change in mining method from the previous Sub-Level Caving
(SLC) mining method to Open Stoping with Hydraulic Backfill (LHS). The decision to transition
from SLC to the LHS mining method was made to reduce safety and technical risks associated
with SLC in the underground environment encountered at Mpama North.
The previous Mineral Reserve estimate was as of 6 F ebruary 2017 and utilized the updated
Front-End Engineering Design (FEED) and Control Budget Estimate (CBE) to declare reserves
according to a SLC mining method.
The table below summarises the changes in Mineral Reserves for the Mpama North orebody.
Changes in Mineral Reserves, 31 December 2019
Classification Quantity (Mt) Grade (%) Tin Content (kt)
2017 2019 2017 2019 2017 2019
Proven Reserves 0.38 0.05 4.17 3.77 15.9 1.9
Probable Reserves 4.29 3.28 3.53 4.01 151.4 131.5
Total Mineral Reserve 4.67 3.33 3.58 4.01 167.3 133.4
Percentage change -28.7% 11.8% -20.3%
1. Computational errors due to rounding are not considered significant.
2. The Mineral Reserves are reported with appropriate modifying factors of dilution and recovery.
3. The Mineral Reserves are reported at the head grade and at delivery to Plant.
4. Although stated separately, the Mineral Resources are inclusive of the Mineral Reserves.
5. No Inferred Mineral Resources have been included in the Mineral Reserve estimate.
6. The input studies are to the prescribed level of accuracy.
7. Reserve cut-off grade for 2017 Reserves was 1.4% Sn while for 2019 Reserves is 1.6% Sn
The LHS mining method has lower levels of dilution than the former SLC mining method, which
positively impacts mined grade and reduces waste to nnes, but requires more pillar support
than SLC and thus has a lower extraction rate. In ad dition, a higher cut-off grade of 1.6% Sn
was used in the updated Mineral Reserves compared t o 1.4% Sn in the 6 February 2017
estimate.
Although the contained tin has decreased with this update by 20.3% or 33.9kt Sn, it is
accompanied by an absolute increase in tin grade of 0.42% Sn (or 11.8% relative increase),
in keeping with the optimized Life of Mine and new mining method. Of the 33.9kt Sn contained
loss, more than a quarter or 9.1kt Sn is associated with depletion from mining activities to 31
December 2019 and the remaining 24.8kt Sn is attrib utable to the new mining method and
layout which requires more pillar support.
Optimised Life of Mine (LOM) plan:
The Life of Mine plan was optimized as at 31 Decemb er 2019. Alphamin appointed Sound
Mining Solutions (“SMS”) to conduct this optimizati on Life of Mine plan which encompassed
the transition to LHS.
The table below summarises the changes in the Life of Mine profile.
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
Changes in LOM plan as at 31 December 2019, including production to date
2017 LoM
Mine
schedule
TOTAL Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 Y14
Tonnes ROM
kt 4,672.6 62.6 289.1 404.7 388.2 394.4 397.4 386.3 370.1 373.9 363.9 366.9 360.7 343.4 171.1
Grade Sn % 3.59 2.39 4.38 3.63 3.22 2.91 2.92 3.73 3.04 2.95 3.25 4.31 5.61 3.53 4.00
Sn contained
kt 168.0 1.5 12.7 14.7 12.5 11.5 11.6 14.4 11.2 11.0 11.8 15.8 20.2 12.1 6.8
2019 LoM
Mine
schedule
TOTAL Actual Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 Y14
Tonnes ROM
kt 4,026.9 172.0 332.8 385.0 393.5 377.3 362.2 386.6 339.8 361.8 307.8 250.8 236.8 85.3 35.1
Grade Sn % 4.06 5.30 4.06 4.14 4.21 4.23 3.96 4.47 3.68 4.89 2.67 2.59 2.99 6.56 8.91
Sn contained
kt 163.3 9.1 13.5 15.9 16.6 15.9 14.3 17.3 12.5 17.7 8.2 6.5 7.1 5.6 3.1
Cumulative difference Sn kt 7.6 8.5 9.7 13.8 18.2 21.0 23.8 25.1 31.7 28.1 18.8 5.6 -0.9 -4.6
Year 1 actual mine production is included in the 20 19 LOM schedule as these were not
conducted on a SLC mining method basis.
The optimized 2019 LOM schedule includes some Infer red Resources, which total 13.6% of
the 2019 LOM schedule and less than half of these ar e scheduled in the first 8 years. The
2017 LOM schedule does not include any Inferred Resources.
The optimized 2019 LOM schedule delivers cumulative ly 28.1kt more tin contained in an
equivalent Run of Mine (ROM) volume to the plant in the first 10 years compared to the
previous LOM schedule. This will improve cash flows during these first 10 years. Conversely,
the optimized 2019 LOM profile has a longer ‘tail’ and lower volumes in the final years than the
previous LOM schedule.
Alphamin is planning an infill resource drilling ca mpaign during 2020 at its Mpama South
prospect, located approximately 1.5km south of the Mpama North mining complex. As mining
extends deeper at the current Mpama North orebody, an underground drilling campaign will
likely be initiated during 2021 in order to pursue an extension of the current declared resources.
Anticipated Effect of the new LOM plan:
Management anticipates that these changes to the Mineral Resources, Mineral Reserves and
optimised Life of Mine plan will allow for higher m ined head grades, less mined waste,
improved cashflows during the initial 10 years, a s afer and more appropriate working
environment given the ground conditions encountered and a small reduction in total contained
tin mined over the life of the Mpama North orebody.
Qualified Person
Mr. Vaughn Duke Pr.Eng. PMP, MBA, B.Sc. Mining Engineering (Hons.), is a qualified person
(QP) under NI 43-101 and has reviewed and approved the scientific and technical information
contained in this news release. He is a Principal C onsultant, Partner and Director of Sound
Mining, an independent technical consultant to the Company.
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
FOR MORE INFORMATION, PLEASE CONTACT:
Maritz Smith
CEO
Alphamin Resources Corp.
Tel: +230 269 4166
E-mail: [email protected]
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 future drilling activities and plans to extend life of mine. Forward-looking
statements are 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 statements. Accordingly, readers should not pl ace undue reliance on forward-looking
statements. Although Alphamin has attempted to iden tify important factors that could cause
actual results to differ materially from those cont ained in forward-looking statements, there
may be other factors that cause results not to be as anticipated, estimated or intended. Factors
that may 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, reserve and life of mine estimates, uncertainties regarding estimates of the expected
mined tin grades, processing plant performance and r ecoveries, events causing actual
operating expenditure to be different to that forecasted, uncertainties regarding global supply
and demand for tin and market and sales prices, unc ertainties with respect to social,
community and environmental impacts, adverse political events, uncertainties with respect to
optimization opportunities for the Project, as well as those risk factors set out in the Company’s
Management Discussion and Analysis and other disclo sure 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 di sclaims any obligation to update any
forward-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.