Proactiveinvestors RSS feed en Sat, 17 Mar 2018 21:33:04 +1100 Genera CMS (Proactiveinvestors) (Proactiveinvestors) <![CDATA[News - Kasbah Resources' new chief reckons it has a bargain at Achmmach in Morocco ]]> Any investor keen to participate in the recent base metal revival could do worse than look at tin, which has been overshadowed recently by rivals zinc and copper.

Certainly, it’s the potential for the soft metal that was one of the reasons Russell Clark took the reins at Kasbah Resources Ltd (ASX:KAS) earlier this year.

WATCH: Kasbah Resources sticking to their knitting as they advance the Achmmach tin project

There are others, but the demand/supply equation makes the outlook for Kasbah’s Achmmach tin mine in Morocco especially attractive, he said.

“Cheap as chips” were his exact words and especially so as a recent rally in the tin price, up 50% in 18 months, has not been matched by the share price of Aussie-listed Kasbah.

All change

A topsy-turvy twelve months for the company may be a reason for this.

Canada-listed Asian Mineral Resources’ proposed takeover collapsed in December when a group of shareholders pointed out a fundamental error in the independent valuation of Kasbah.

In the subsequent period all of the senior management has changed, while there has been a complete boardroom overhaul.

Clark himself joined the rejuvenated company in September, having previously been behind the development of Wolf Minerals’ tungsten (and tin) mine near Plymouth in the UK.

“I like speciality metals,” Clark told Proactive, adding the prospects for tin are bright especially with the onrush of electric vehicles.

Tin is mainly now used as solder and he expects electric vehicles to be a sizeable market both for this and also in the batteries that will provide the power.

In recharging, tin is seen as much faster than graphite while a silicon tin alloy can be used to boost conductivity in semiconductors.

Supply constraints

Supply constraints are an even more bullish feature.

Alluvial tin production from places such as Myanmar is running out, he says, while a lot of established tin mines are getting old with little new exploration over the past ten years.

In China, meanwhile, new environmental controls are hitting output.

“Slightly increased demand and significantly reduced supply means the price of tin is going up.”

Kasbah has been working on Achmmach for nine years, but the first step for Clark is to redraw the numbers following the issues with the last report.

A technical review undertaken by a new consultant, AMC, at Achmmach found nothing untoward and even pointed to ways to improve the project’s economics.

AMC has now moved on to a full revision of the previous definitive feasibility study, something expected to be completed in the first quarter of next year.

If successful, Kasbah will refinance at that point and start work on raising the funds for construction of a mine.

Ten-year life

At present, Achmmach has a JORC reserve of 6.56mln tonnes at a grade of 0.85%.

Of this, 877,000 tonnes are in the proven category for about 9,700t metal at a grade of 1.1%.

That would be enough for a 10-year mine life at a rate of production of 8,000tpa of concentrate (4,000t of metal), which compares with total global production of about 350,000 tonnes.

Kasbah owns 75% of the project with two Japanese companies Toyota Tsusho (20% ) and Nittelsi Mining (5%) owning the remainder.

The company also owns the Bou El Jaj tin prospect 13km to the south, which will potentially provide additional feedstock for the processing plant.

A funding in June raised A$5.2mln and saw Russian billionaire-backed resource investor Pala come on board with a 21.6% stake.

African Lion owns 13.7% with three other investors, including two metal traders, owning between 4.3% and 4.8%.

These deep-pocketed backers are another attraction says Clark, but he also admits to liking the challenge in Morocco.

Morocco appeal

Mining has been a feature of the country for 2,000 years and there is a fluorite mine only 30Km from Achmmach.

The government is also keen to boost income from its resources sector with a target to increase revenues three-fold by 2025.

New mining laws have recently been introduced and the site is fully permitted with environmental approval. Few other tin deposits are in such an advanced state of development.

Add in the rising demand and supply challenges for tin, a new board and management, strong backers and a ‘great country to do business’ and you can see the appeal.

“I was looking for something interesting - Morocco, tin, a rising market and great backers have provided that.”

Tue, 31 Oct 2017 09:53:00 +1100
<![CDATA[Media files - Kasbah Resources sticking to their knitting as they advance the Achmmach tin project ]]> Mon, 30 Oct 2017 08:58:00 +1100 <![CDATA[News - Kasbah Resources shares halted ]]> The halt will remain in place until Friday 9th December 2016, or earlier if an announcement is made to the market.

Wed, 07 Dec 2016 09:30:00 +1100
<![CDATA[News - Kasbah Resources Ltd in an ASX trading halt ]]> Kasbah Resources Ltd (ASX:KAS) has been granted a trading halt by the ASX, pending a response to a Price Query.

Shares in the company last traded before the halt more than double their price from two weeks ago.

The halt will remain in place until the opening of trade on Thursday 21st July 2016, or earlier if an announcement is made to the market.


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Tue, 19 Jul 2016 16:00:00 +1000
<![CDATA[News - Kasbah Resources Ltd receives ASX speeding ticket ]]> Kasbah Resources Ltd (ASX:KAS) has been granted a trading halt by the ASX, pending a response on an ASX Price Query.

Kasbah shares were up 20% on volume of almost 2 million before entering the halt.

The halt will remain in place until the opening of trade on Tuesday 12th July 2016, or earlier of an announcement is mad to the market.


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Fri, 08 Jul 2016 15:00:00 +1000
<![CDATA[News - Kasbah Resources has institutional support for $3M share placement ]]> Kasbah Resources (ASX:KAS) is raising about $3 million through a placement of shares to its major shareholders to fund the interim development strategy for its Achmmach Tin Project in Morocco.

It has received commitments for approximately 104.6 million shares priced at $0.029 each.

Notably, this received strong support from two of largest shareholders with African Lion Fund increasing its interest to 16.1% while the International Finance Corporation will retain its position as the largest shareholder with about 17.7% of the company.

Thailand Smelting and Refining (Thaisarco) Smelting and Refining, the world’s fifth largest tin smelter, will become a substantial shareholder with a 5.6% interest while major physical commodity trader Traxys will increase its shareholding to about 5.3%.

The support from major shareholders and major tin industry participants highlight the industry’s need for new long term, sustainable tin supply.

Interim Development Strategy

Along with a decision to defer mandating commercial debt, Kasbah has adopted an interim development strategy. This strategy incorporates:

- Completing pre-development environmental and social requirements of the International Financial Corporation;
- Undertaking pre-engineering design for the new power line required to service Achmmach;
- Continuing low cost exploration in Morocco and pursue other joint venture opportunities;
- Protecting and preserving the value of Achmmach during this period of commodity volatility; and
- Investigating alternative opportunities to enhance shareholder value.
In March, the company released an Enhanced Definitive Feasibility Study that improved the project economics of Achmmach.

Critically, C3 production cost fell to US$13,296 per tonne of tin in concentrate, confirming the potential of Achmmach to be a long life, low cost tin producer.

Tin is currently trading in a range of approximately US$14,700 to US$15,900 per tonne.

The base case also estimates pre-production capital of US$148 million, post-tax NPV of US$171 million, IRR of 32.9% and a 2.3 year payback period.

Cost Reduction

The company will immediately commence making further changes to implement a series of cost reduction initiatives to preserve capital including:

- Reducing the number of directors down to four from five members;
- Reduction in board fees;
- Reduction in management remuneration;
- Reduction in expatriate operations personnel and site staff;
- Suspension of short term incentive (STI) program for all staff; and
- Reduction in corporate overheads.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

Tue, 16 Jun 2015 15:00:00 +1000
<![CDATA[News - Kasbah Resources receives key approvals for Achmmach Tin Project ]]> Kasbah Resources (ASX:KAS) has received several key approvals for its flagship Achmmach Tin Project in Morocco.

These include:

- Final acceptance of the Achmmach Environmental and Social Impact Assessment (ESIA) incorporating final Environmental and Social Monitoring and Management Plan (ESMMP) by the Moroccan Ministry of Environment;
- Completion of collective farmland rental agreement with the Ministry of Interior;
- Signing of in principle Community Development agreements with the Communes of Ait Ouikhalfen and Ras Jerri; and
- Acceptance of the proposed Achmmach water management strategy by the Sebou Basin Agency.

The company now expects to enter into a land rental agreement with the Forestry Department during the second quarter of 2015.

This is the last of the mandatory approvals to be issued by the Moroccan Government.

Once the decision to mine is taken by Atlas Tin, final construction approval will be issued by the Ait Ouikhalfen commune and will be based on acceptance of final engineering designs by the Department of Equipment (roads and plant), the Sebou Basin Agency (water storage and tailings management facilities) and the National Office of Electricity and Potable Water.

Extensional drilling at the Western Zone (WZ) target at Achmmach has upgraded the Indicated Resource to 340,000 tonnes at 1.25% for 4,200 tonnes of contained tin.

The company had $4.8 million in cash as at 31 December 2014.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

Tue, 13 Jan 2015 14:30:00 +1100
<![CDATA[News - Kasbah Resources increases Indicated Resource of open pit target in Morocco ]]> Kasbah Resources’ (ASX: KAS) extensional drilling has increased Indicated Resources at the Western Zone Shallows of its Achmmach Tin Project in Morocco by 53% to 221,000 tonnes at 0.95% tin.

The WZS mineralised zone, which is amendable to open pit mining, is now 220 metres long, has multiple tin structures up to 8 metres wide and extends to some 150 metres below surface.

It remains opens along strike to the east and downdip with the company integrating it into the Achmmach mine schedule to provide early high-grade mill feed.

Pit optimisation is underway while the Definitive Feasibility Study into the development of a 1 million tonne per annum underground mine, concentrator and associated infrastructure at Achmmach will be released in March 2014.

Kasbah's Achmmach tin project is targeting first tin production in 2015.


Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

Thu, 06 Feb 2014 09:20:00 +1100
<![CDATA[News - Kasbah Resources extends mineralisation at Morocco tin project ]]> Kasbah Resources (ASX: KAS) has extended mineralisation at its Achmmach Tin Project in Morocco along strike and down dip of the current resource model from extensional drilling at the Western Zone Shallow (WZS).

Notable results from the 13 diamond holes totalling 1,420 metres include 9.3 metres at 0.95% tin from 95 metres, 6.4 metres at 1.51% tin from 64.2 metres and 10 metres at 0.74% tin from 45 metres.

Tin mineralisation within the WZS and the stacked characteristic of the mineralised tourmaline zones suggests the potential that en-echelon tourmaline zones at depth may exist.

A new resource estimate and mine design is underway for the WZS and is expected in January 2014 with a view to incorporating this target into the Achmmach Definitive Feasibility Study (DFS) that is on track for completion during the first quarter of 2014.


Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

Thu, 09 Jan 2014 17:20:00 +1100
<![CDATA[News - Kasbah Resources awards engineering contract for Achmmach, DFS underway ]]> Kasbah Resources (ASX: KAS) has awarded the Engineering Cost Estimation and Definitive Feasibility Study contract for its Achmmach Tin project in Morocco to DRA Pacific (DRA).

“The award of this package of works marks the formal commencement of the Achmmach DFS,” Kasbah chief operating officer Mike Kitney said.

“Bulk scale metallurgical work is now underway and Kasbah looks forward to working with the DRA Pacific team in optimising the project design. The DFS is expected to be complete by the last quarter of calendar 2013.”

DRA was founded in South Africa in 1984 and is a leading multi-disciplinary engineering and project management group of companies, with a strong African focus.

It has extensive experience in mine and infrastructure design with a strong processing capability. This includes base metals, coal, chrome, diamonds, gold, platinum, iron ore, uranium and phosphates with DRA being the leader in gravity separation.

Achmmach Tin Project

Notable results from recent drilling at Achmmach have included 10.5 metres at 3.13% tin from 203.5 metres including 3 metres at 6.71% tin from 208.5 metres at 2570mE and 11.5 metres at 2.22% tin from 305.5 metres including 4.6 metres at 4.49% tin from 308.4 metres at 2650mE.

The results from 2570mE confirmed continuity of mineralisation within section and along strike while 2650mE returned higher grade intercepts than previously modelled.

Drilling continues to the east from 2810mE to 3300mE.

This drilling tests the Inferred Resource between 2400mE and 3300mE to upgrade Inferred Resources to Indicated status.

Achmmach had JORC Inferred and Indicated Resources of 14.6 million tonnes at 0.9% tin for 135,000 tonnes of contained tin as of March 2012.


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Thu, 27 Sep 2012 10:20:00 +1000
<![CDATA[News - Kasbah Resources receives milestone first A$4m payment from Toyota Tsusho Corporation ]]> Kasbah Resources (ASX: KAS) has received its first staged payment of A$4 million from Toyota Group company, Toyota Tsusho Corporation.

Last month, Kasbah made the strategic move to allow Toyota Tsusho to farm into its Achmmach Tin Project in Morocco, up to a 20% share.

Importantly, the deal further de-risks the development of Achmmach, one of the largest undeveloped tin deposits in the world.

To earn its 20% interest, Toyota Tsusho must make a series of payments to Kasbah which will be used for exploration and development works at Achmmach, as well as finalise a joint venture agreement.

Toyota Tsusho trades around 8% of the global tin market and more than 50% of all tin consumed in Japan.

Further upside to the deal with Toyota Tsusho is the Japanese heavyweight’s relationship with Japan Oil, Gas and Metals National Corporation (JOGMEC) which may provide another project financing option for Achmmach.

The next step for Toyota Tsusho is to pay $11 million within 60 days of the completion of the Pre-Feasibility Study.

A final payment will then be calculated from the net present value of the Definitive Feasibility Study and paid within 90 days of completion of the study.
The final payment and signing of a joint venture agreement will secure Toyota Tsusho’s 20% interest and entitle the company, on mutually agreeable commercial terms, to a minimum 20% offtake of tin produced from these two exploitation permits.

April Pre-Feasibility Study on track

The strong short term news flow for Kasbah is set to continue with a Pre-Feasibility Study on track to be completed in April.

Exploration is moving forward at pace with five diamond rigs active which will continue with infill and extensional drilling of the Meknes Trend.

Kasbah recently delivered an upgrade to the Achmmach Resource of 150% to 14.6 million tonnes at 0.9% tin for 135,000 tonnes of contained tin.

The resource comprises an Indicated Resource of 5.3 million tonnes at 0.8% tin for 42,000 tonnes and an Inferred Resource of 9.3 million tonnes at 1% tin for 93,000 tonnes.

This Resource increase combined with the Toyota Tsusho deal has attracted Kasbah a 12-month price target of $0.55, nearly double its current share price, and a buy recommendation from a broker.

Kasbah has indicated that the company is targeting another resource upgrade in the September quarter of 2012.

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Mon, 23 Apr 2012 10:40:00 +1000
<![CDATA[News - Kasbah Resources: Achmmach becomes a strategic tin asset, broker raises target price ]]> Kasbah Resources (ASX: KAS) has been fundamentally changed, according to a broker, following the recent milestone announcements of a 150% increase in the JORC Resource at the Achmmach Tin Project in Morocco and Toyota Tsusho acquiring a 20% interest in the project.

As a result the broker has increased its 12-month price target by 14.6% to A$0.55 and maintained a buy recommendation.

The following is an extract from the report.

Achmmach becomes a strategic tin asset

Kasbah Resources (Kasbah) has made two major announcements in the past fortnight that have fundamentally changed the company and its Achmmach Tin Project .

These announcements were:

- Toyota Tsusho to acquire a 20% interest in the project for a total cash consideration, which we currently estimate as A$28 million, and

- A 150% increase and upgrade of JORC resources at Achmmach to 135,000 tonnes contained tin.

Toyota Tsusho is a subsidiary of Toyota Group and Asia’s foremost tin trading house and among the largest trading companies in the world. Toyota Tsusho trades approximately 8% of the global tin market and over 50% of all tin consumed in Japan.

The investment by Toyota Tsusho fundamentally underwrites the project not just financially but as an economic and valuable asset to the tin industry worldwide. We view it as a major tick of approval for the project.

The resource increase and upgrade announced last week was exceptional. It is rare in the resources industry to see not only an increase in tonnes but also in grade. The new resource is more than double the tonnes of the previous resource and this is compounded by a more than 12% increase in the grade of tin.

With 135,000 tonnes of contained tin in a resource of 14.6 million tonnes at greater than 0.9% the Achmmach Tin Project is now a top 5 tin resource worldwide with one of the highest grades. We contend this has made the project a strategic asset in the tin industry and therefore not only has a quantifiable value but also a strategic value for tin players such as Toyota Tsusho.

Overall we were surprised on the upside by the size of the increase in resource and following our recent site visit expect the resource at the project to continue to grow over the next 12 months as 5 drill rigs continue to operate around the clock.

The pre-feasibility study is due to be released in mid-April and a further resource upgrade is due in August.

Our base case valuation of Kasbah has been revised following the Toyota Tsusho deal and along with the resource increase. Our base case has increased by 28% to $0.41 per share (previously $0.32) with an upside valuation of $0.67 per share (previously $0.61).

We maintain our Buy recommendation for Kasbah with a revised 12-month price target of $0.55 per share (previously $0.48).

Fri, 13 Apr 2012 11:44:00 +1000
<![CDATA[News - Kasbah Resources in pre-open pending Achmmach tin project announcement ]]> Kasbah Resources (ASX: KAS) has been granted a trading halt by the ASX pending an announcement on the Achmmach tin project in Morocco, with the company's shares placed in pre-open.

Kasbah did not elaborate what type of announcement was pending for Achmmach, but tin has recently experienced a strong run up in price - and therefore increased interest from investors.

Even though tin has fallen to around US$25,000 a tonne, from over US$32,000 earlier in the year, the price still remains well above the US$14,000 level from two years earlier.

Last month Kasbah intersected three major tin zones at Achmmach, with highlights including; 7.65 metres at 2.21% tin from 147 metres, 5 metres at 1.67% tin from 151 metres, and 9 metres at 1.50% tin from 171.5 metres.

Kasbah then commenced extension drilling which the company said if successful, could extend one of the zones strike to over one kilometre in length.


Mon, 27 Jun 2011 12:57:00 +1000
<![CDATA[News - Kasbah Resources ramps up tin exploration on priority targets at Achmmach ]]> Kasbah Resources (ASX: KAS) now has three diamond rigs operational at the Achmmach tin project in Morocco, which are targeting some near surface high priority tin targets.

First pass drilling intercepted some very encouraging results, which is perfect timing for Kasbah as the spot tin price sits above US$31,000 a tonne.

Results from first past drilling included:

- 1 metre at 1.64% tin from 56 metres;
- 6 metre at 0.45% tin from 132 metres;
- 1 metre at 2.12% tin from 19 metres;
- 15 metre at 0.70% tin from 37 metres; and
- 19 metre at 0.47% tin from 35 metres.

These tin results highlight the prospectivity of the area, and also identify the potential for open pit mining.

Mineralisation of 0.5% tin may be amenable to open pit mining methods, but this will depend on the nature of the ore body and the characteristics of the ore.

Kasbah has an exclusive right to acquire a 100% interest in Achmmach by completing a Feasibility Study, and will consider developing the project depending on the study findings.

The project covers 32 square kilometres, which Kasbah said is one of the largest undeveloped tin deposits in the world.

The market liked the plan, pushing the shares 4.5% higher to $0.35 in afternoon intra-day trading.


Mon, 28 Feb 2011 14:38:00 +1100
<![CDATA[News - Kasbah Resources looks to upgrade tin resource at Achmmach on drill results ]]> Australian listed, Moroccan based Kasbah Resources' (ASX: KAS) drilling results from its Achmmach Tin Project in Morocco have continued to define additional, potentially economic tin widths and grades between 200-400m below natural surface.

On 16 August, Kasbah reported that Quantitative Group estimated a 2.2Mt of Indicated Mineral Resource @ 0.8 tin at Achmmach.

The drilling results reported occur in the Meknes Zone, approximately 50m west of both drill hole AD029 and the underground exploration workings.

Drill hole AD056 and AD059 are testing part of the Inferred Resource extension to the west of the Meknes Zone Indicated Resources. AD059 intersected predicted low grade tin mineralisation.

Strong tin grades intersected in AD056, include:

- 6m @ 1.64% Sn from 193m;
- 6m @ 0.60% Sn from 204m;
- 7 m @ 0.62% Sn from 227m;
- 14 m @ 1.13% Sn from 259m (including 3m @ 2.81% from 260m).

Drilling priorities at Meknes are now to upgrade the Inferred Resource to the west of the main body of the Meknes Indicated Resource covering 250m of strike length, and test for mineralisation within an untested target strike length of 400m westward from the current Inferred Resource to the west of the Meknes Indicated Resource.

The Meknes Zone has untested strike potential of up to 400 m to the west, outside the currently defined resource.

These holes intersected tin mineralisation in the predicted locations within the Inferred Resource and give confidence in the resource model and provide encouragement for the continuation of the drilling further towards the west.

Drilling of the shallow Northern Zone target also commenced in August. This drilling seeks to define tin mineralisation that is potentially mineable by open pit methods. Assays are now pending.

The Meknes Zone mineralised system remains open along strike with high grade hits on its western side, encouraging the extension of the drilling program towards the west.

Tin is this year's best performer on the London Metal Exchange as LME tin stockpiles have fallen to a 17-month low of 12,255 tonnes, falling about 50% since January. 

U.S. tin premiums have risen more than 50% so far this year. Reuters reported that premiums for grade A material containing 99.80% tin, were seen trading in a range of $550 and $600 per ton among the LME three months future price, which hit a record $26,790 per tonne in early October.

Drilling activity continues and additional assay results are pending.

KAS has a market capitalisation of A$87.81 million and shares are currently trading at 36.5 cents.

Wed, 27 Oct 2010 13:22:00 +1100