Achmmach

Achmmach is blessed with a world class tin resource endowment. With over 120,000 meters of drilling and estimated 160,000 tons of tin at 0.7% grade, its orebody is one of the largest and highest-grade tin deposits globally, with further potential to grow along strike and depth.

On the 5^th August 2024, Atlantic Tin completed the acquisition of Société Anonyme d’Entreprises Minières (“SAMINE”), from Managem S.A. (CAS:MNG) (“Managem”). SAMINE owns the past producing El Hammam mine, including its infrastructure and tenements, located adjacent to the Achmmach Tin Project (“Achmmach”) near Meknes, Morocco. SAMINE has been acquired by Atlantic Tin’s 100% owned Moroccan subsidiary, Titan Tin.

The El Hammam mine is located 7km away from Achmmach. Ore will be mined underground at Achmmach and transported by road 7km to the El Hammam mine for treatment to produce tin concentrate. A definitive feasibility study has commenced. The study is based on an 18-month construction schedule with commercial tin production commencing in 2026 and ramping up to a sustained mining and processing rate of 900,000 tpa of ore.

In addition to the existing processing plant, SAMINE has in place a 111 square kilometre exploitation license along strike from the Achmmach project, which is highly prospective for tin. Exploration is currently underway on the SAMINE exploitation license.

SAMINE Exploitation License (Green), Achmmach Exploitation License (Red) and Bou El Jaj (Blue)

In May 2024 a Scoping Study was completed which incorporates the benefits of combining Achmmach with the nearby El Hammam processing facility owned by SAMINE. The Scoping Study demonstrates the integrated project to be a low-cost, long-life producer of clean and high-grade tin concentrate on the doorstep of Europe. Tin is a critical mineral needed for the world’s transition to clean energy and would benefit from the strong expected demand for Artificial-Intelligence-driven semiconductor applications.

The 2024 Scoping Study¹ validates the potential of Achmmach with a Base Case post-tax Net Present Value ("NPV") of US$307M and a post-tax Internal Rate of Return ("IRR") of 45%.

¹The results of the Scoping Study, including the valuation, development cost and financial and operating performance of the Achmmach project, will be subject to further study and verification as part of the Company’s Definitive Feasibility Study which is currently underway.

Key highlights of the 2024 Scoping Study include:

Attractive Project Economics

• US$307M Base Case NPV_8% (post-tax) and IRR of 45% (post-tax) at US$30,000/t Sn price
• Payback in 4.3 years (Base Case, post-tax)
• Pre-production capital expenditure of US$54M
• Expansionary capital expenditure in production years 2 and 3 of US$28M
• Life-of-Mine (“LOM”) EBITDA of US$990M, peaking at US$88M per annum, with an average of US$66M per annum during years 2 to 16
• LOM post-tax free cash flow of US$680M, peaking at US$71M per annum, with an average of US$51M per annum during years 2 to 16

Significant Tin Production with Expansionary Potential

• Production of 63.7kt tin metal in concentrate, over a 17-year mine life
• Peak production at 5.0kt per annum of tin metal in concentrate
• Overall LOM processing tin recovery of 72%
• Tin concentrate grade of 60% Sn
• Conventional long-hole open stope mining with back fill
• Mined ore upgrade with ore sorting and dense media separation (DMS)
• Conventional crushing, gravity, HPGR milling, flotation to produce tin concentrate
• LOM tin production in the Base Case based on measured and indicated JORC resources at Achmmach deposit (see Tables 2-4)
• Additional upside potential not reflected in the Base Case economics include:
  • Additional potential mineralisation from Sidi Addi
  • Possible mineralisation extensions around existing resource
  • Potential mineralisation at Bou El Jaj
  • Exploration potential on the acquired SAMINE land along strike and between Meknes and Bou El Jaj

Sustainable Tin Production

• Average C1 cash cost of US$13,569/t Sn over the LOM
• Average AISC of US$15,368/t over the LOM
• Low capital intensity per tonne of recovered tin US$1,130/t Sn
• SAMINE acquisition reduces Achmmach’s project footprint
• Reduced construction time with SAMINE process and related facilities
• Filtered tailings to be placed back underground as backfill
• Renewable energy resources in Morocco (expected to 50% renewable by 2030)

The Scoping Study referred to in this announcement has been undertaken to evaluate the potential development of the Achmmach-SAMINE tin project. The Scoping Study is a preliminary technical and economic study of the potential viability of the Achmmach-SAMINE tin project. It is based on low level technical and economic assessments that are not sufficient to support the estimation of ore reserves. The Scoping Study has been completed to a level of accuracy of +/- 35%.  Further evaluation work and appropriate study is required before Atlantic Tin will be in a position to estimate any ore reserves or to provide any assurance of an economic development case.

Of the Mineral Resources scheduled for extraction in this Scoping Study’s production target, 100% are classified as Measured and Indicated Mineral Resources, with 0% (zero) being Inferred Mineral Resources.

Permits and Licenses

Mining License

In January 2022, the mining license of the Achmmach Tin Project (license d’exploitation No.332912) was successfully renewed for a further 10-year period to 17 January 2032. The renewal of the mining license demonstrates the continued support of the local and regional governments of Morocco.

Environmental and Social Impact Assessment

The Environmental and Social Impact Assessment (ESIA) for the Achmmach Tin Project was completed in 2014 and in 2019, was renewed for the life of the mine. The ESIA is a critical permit required to operate and sets out the fundamental environmental and social compliance framework. The renewal confirmed the Company's compliance with Moroccan environmental and regulatory requirements and reaffirms the Moroccan authorities support for the project. The renewal of the ESIA was an important step in securing the tenure of the mining license. 

Environmental and Social Impact Assessment