Andrada secures additional tin supply from nearby orebody
Tin producer Andrada Mining has secured additional supply from a tin orebody at Goantagab in close proximity to the company’s operating Uis mine and processing facility, in Namibia.
The orebody, located in Goantagab in the Kunene region of Namibia, was extensively drilled by Gold Fields Namibia in the 1980s confirming, at the time, a non-Joint Ore Reserves Committee- (non-Jorc-) compliant resource with tin grades of greater than 1%.
The initial non-Jorc-compliant resource at Goantagab amounted to more than two-million tonnes with an average grade of 0.95% tin. Higher tin grade zones of up to 1.75% were identified.
About 20 000 m have been drilled to date, while mineralised zones with grab samples of more than 17% tin were also identified but not drilled indicating further upside potential. Andrada confirmed that a prefeasibility study had also been completed.
The relatively high historic tin grades position this deposit as a potential source of high-margin feedstock that is expected to materially enhance throughput at Uis.
To unlock this value, Andrada has finalised an ore supply and profit share agreement between its subsidiary Uis Tin Mining Company (UTMC) and Goantagab Mining, which acts as agent for the relevant mining claim owners.
Simultaneously, UTMC has entered into a management agreement with Goantagab Mining’s parent company Birca Mining Namibia as an independent contractor to operate the recently announced additional jig plant at Uis.
The accelerated commissioning of the plant combined with high grade feedstock from Goantagab is expected to enable rapid production ramp-up, Andrada said on June 17.
Once commissioned, the 100 t/h jig plant will ensure that processing the high-grade ore from Goantagab complements production from the existing operations at Uis.
Andrada has the option to acquire 100% of Goantagab Mining shares for $15-million, subject to certain conditions.
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