Kasbah Resources (ASX: KAS) has successfully extended the Meknes Trend tin mineralisation by 320 metres to the east of the 2010 Meknes Resource boundary following a recent drilling program at the company's Achmmach Project.
Drilling at the Gap Zone has returned promising intersections of 11.2 metres at 0.52% tin from 357 metres, 5.4 metres at 1.52% from 388 metres and 6.6 metres at 0.98% from 407 metres, from a drill hole that showed some elevated tin grades adjacent to and within the intrusive.
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.
Another hole returned significant intercepts adjacent to and within the intrusive.
It also has significant intercepts below the intrusive which can be linked to those in the first hole, suggesting that these intercepts and the lower intercepts on sections to the west may indicate the development of another mineralised zone heading to the east, below the Meknes zone.
Intersections from this hole included 29 metres at 0.63% tin from 211 metres, including 6.6 metres at 1.46% from 225.2 metres, 25 metres at 0.81% from 253 metres, including 6.6 metres at 1.87% from 262.7 metres, and 13.3 metres at 0.48% from 396.2 metres.
A third hole also intersected a lower zone of mineralisation with a 30 degree dip to the northwest, including intersections of 9 metres at 1.25% tin from 355 metres, 20 metres at 0.34% from 389 metres and 5 metres at 0.83% from 467 metres.
Kasbah is still awaiting 1491 assays from the 80 metre spaced drilling of the fourth step out section into the Gap Zone.
The drilling program was designed to complete first pass drilling of the Gap Zone to confirm the extension of the Meknes mineralisation.
If successful this will extend the mineralised strike by an additional 500 metres and provide the link between the previously reported resources in the Meknes Zone with the resources in the Eastern Zone.
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.
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 continued drilling success at the project, a recent broker research note placed a price target of A$0.41 per share on the company, well above the current price of $0.24.
Kasbah has been on an upwards share trajectory since mid to late December last year when shares were trading at around $0.14.
Five drill rigs are in operation at Achmmach, with 40 metre spaced infill drilling within the 2010 Meknes Resource having already begun.
Kasbah remains on track to upgrade to the Achmmach resource by the March quarter of 2012.