Proactive Investor's  Instablog

Kasbah Resources' (ASX: KAS) substantial shareholder Lion Selection Group has increased its total holding in the company to 15.1% not long after Kasbah revealed the economic and technical viability of the Achmmach Tin Project.

The mining investment company took up a further 1.27% in Kasbah through the African Lion 3 fund. African Ironexercised 7.25 million shares for consideration of more than $1.8 million.

Earlier this month, Kasbah announced that it was set to move forward with a Definitive Feasibility Study for the Achmmach Tin Project in Morocco, following results from the Pre-Feasibility Study (PFS).

Results from the PFS indicated potential for a low cost operation at Achmmach, with mine gate costs of US$65.76 per tonne of ore and project development costs, including all surface infrastructure, of US$167.

The PFS is based on an underground operation producing 1 million tonnes per annum, with a concentrator producing 6,880 tonnes of tin in concentrate each year for export to an Asian tin smelter.

Based on the 2013 Consensus tin price of US$24,407, this gives Kasbah the potential to achieve a net present value (NPV) of US$134 million, although a base case NPV of US$79 million is also given, using a tin price of US$21,961.

Kasbah expects to deliver the DFS for Achmmach in the December quarter of 2013, with work on the study to begin later this year.

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