Kasbah Resources (ASX: KAS) is an advanced explorer and developer purely focussed on tin. Kasbah’s main focus has been to progress the Achmmach Tin Project in Morocco, having established a robust underground JORC resource.
Recent drilling results indicate that Achmmach is rapidly transforming into a asset with considerable potential for a substantial underground mine to be developed. Kasbah has built a presence in Morocco with strong relationships with Morocco’s Mines Department and the local Moroccan community.
Kasbah Resources strikes 38 metres at 1.63% tin at Achmmach in Morocco
The Gap Zone at the Achmmach Tin Project is shaping up to be a significant exploration target which could link the mineralisation identified in a 2010 Resource model in the Meknes/Fez and Eastern zones.
Kasbah Resources (ASX: KAS) has intersected broad mineralisation from diamond drilling at the Gap Zone, part of the Achmmach Tin Project in Morocco, including 38 metres at 1.63% tin from 287 metres.
From the same drill hole (AD115) an intersection of 7 metres at 1.77% tin from 215 metres was also reported, while another hole (AD112) intersected intervals of 29 metres at 0.72% from 330 metres and 43 metres at 2.01% from 380 metres, which confirms the high grade mineralisation of 14.2 metres at 3.17% from 318.8 metres previously reported.
Hole AD112 is the first of a number of holes designed to test the continuity of tin mineralisation along a 105 magnetic azimuth which is oblique to the Meknes Trend mineralisation.
A third hole (AD118) intersected 7 metres at 0.61% tin from 300 metres and 9 metres at 0.65% from 341 metres.
The Gap Zone is a significant exploration target which could link the Meknes/Fez and Eastern Zones’ tin mineralisation previously defined by the 2010 Resource model.
Section 2530mE is the second step out section completed in the Gap Zone. It is located 80 metres east of the previously reported section 2450mE and about 160 metres east of the 2010 Meknes Resource.
This section comprises four diamond drill holes, for around 2030 metres, designed to drill test the Meknes Trend mineralisation. Mineralisation remains open and follow up drilling is planned.
Assays are still pending from a further six drill holes.
Achmmach Tin Project
Achmmach is a significant tin project, with a growing tin resource. There is potential to link the resources in the west of Achmmach to resources in the east.
Latest drilling results from the Gap Zone support the premise, potentially transforming Achmmach and Kasbah into a significantly larger and higher valued “tin play” than currently is the case.
A Scoping Study has shown robust project economics with an internal rate of return of 43% and tin operating costs of A$12,683 per tonne of tin in concentrate. The study indicated a rapid payback period of two years.
The project contains one of the largest undeveloped tin deposits in the world, with a JORC Resource of 7 million tonnes at 0.8% tin, with a cut-off grade of 0.5%, for 54,000 tonnes contained tin.
This comprises an Indicated Resource of 2.2 million tonnes at 0.8% tin, and an Inferred Resource of 4.8 million tonnes at 0.8% tin.
In August, Kasbah received approval for the early assignment of 100% project ownership of Achmmach, which de-risks the operations.
As a result of this and continued drilling success at the project, a recent broker research note placed a price target of $0.44 per share on the company, well above the current price of $0.17.
Recent drilling identified extensions of the Meknes Resource. Five drill rigs are in operation at Achmmach, with drilling increasing to about 3,000 metres per month.
Kasbah is targeting an upgrade to the Achmmach resource by the March quarter of 2012.
Potential Increased Tin Inventory
In December Kasbah signed an agreement to purchase the Bou El Jaj Tin Prospect, which is highly prospective considering rock chip sampling returned tin grades of up to 17.9%.
The Bou El Jaj Tin Prospect, which spans 22.6 square kilometres over two exploration permits, covers outcropping tin mineralisation 8 kilometres south-southwest of the Achmmach project.
Indicating the potential of the prospect for Kasbah, the outcrop lies at the southernmost extent of a broad zone of tourmaline alteration hosted by fine grained sandstones and siltstones intruded by multiple dykes of dolerite and microgranite – similar in nature to the geology of the Achmmach tin mineralisation.
