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Mokopane Tin Project

Project Summary

The Mokopane Tin Project is a brownfields tin project containing 18,447 tonnes of tin with an average grade of 0.12% tin (Sn) on two adjacent deposits. It is situated on the Northern Limb of the Bushveld Complex and consists of one prospecting right (2205 PR), covering six farms with an area of approximately 13,422 ha. Within the licence area, numerous targets for open-castable disseminated tin resources have been identified, and the Company has explored and drilled two of the targets, Groenfontein and Zaaiplaats, upon which a scoping study was based and the results released in September 2014.

The scoping study incorporated a simple process design based on closed circuit multi-stage gravity separation, followed by small-scale flotation and electrostatic separation, and smelting to produce a high-purity metal. The Base Case scenario is of a 691 ktpa ROM operation producing ~700 tpa of 99.5% tin metal from 1,380 tpa of 51.4% concentrate. The required capital expenditure is low at US$16.7 million and the economics of the Project are positive showing a pre-tax NPV of US$18.0 million and post-tax NPV of US$10.0 million, as well as a pre-tax IRR of 49.8% and post-tax IRR of 34.6%.

The tin market is supported by strong fundamentals, with increasing demand and strong prices supported by a supply deficit that is expected to continue into the foreseeable future.


Project Location

The Mokopane Tin Project is located in the Limpopo Province, South Africa. It is situated on the northern limb of the Bushveld Complex and consists of one licence, 2205 PR, which is based on six farms covering an area of approximately 13,422 ha. Within this licence area, several targets for open-castable disseminated tin resources have been identified, and Bushveld Minerals has explored and drilled two of the targets, Groenfontein and Zaaiplaats.

 

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The project is compliant with the Black Economic Empowerment (“BEE”) prescriptions of the Department of Mineral Resources, articulated through the Mining Charter. 26% of the shareholding of Renetype (Pty) Ltd is held by BEE shareholders, significantly above the 26% threshold targeted for 2014 by the Mining Charter.