Andrada reports record production of 361 tonnes of tin concentrate from Uis mine in Q4


Andrada Mining Limited reported a record quarterly production of 361 tonnes of tin concentrate in the fourth quarter of 2023, containing 214 tonnes of tin metal at its Uis Mine.

The company that released its fourth quarter production report on March 20 said the year-on-year tin concentrate increased by 19% to 960 tonnes compared to 804 in 2022.

There was an 18% increase in the contained tin to 586 tonnes compared to 496 in 2022.

The 2024 tin concentrate production guidance has been set at between 1,400 and 1,500 tonnes - a 45% to 56% year-on-year increase due to the plant expansion ramp-up.

The company also reported the lowest quarterly all-in-sustaining costs at US$18,236 per tonne of contained tin in the fourth quarter of 2023.

Andrada said it anticipates completing the lithium bulk-testing pilot facility in June 2023 and that the metallurgical testwork done by Geolabs Global, an independent test facility in South Africa, has identified a process that could produce a lithium concentrate suitable for buyers' specifications in industrial and battery feedstock markets.

In January this year, Andrada started drilling to investigate the visible spodumene mineralisation, and field mapping of drill targets on Nai Nais pegmatites under the mining licence area 133 was finalised.

The company said the detailed exploration update is scheduled for June 2023.

The cash balance by the end of Feb. 2023 increased by 16% to 8,6 million pounds or US$10,3 million from 7,4 million pounds or US$9,9 million reported on Feb. 2022.

The company said the conditional finance arrangements for Orion and DBN, previously announced on 5 July 2022, 15 September 2022, and 17 November 2022, have been combined into a single legal workstream to reduce the timeline to financial closure. 

Andrada says it still expects to complete the process by the end of May 2023. 

The average operating cash costs, excluding selling expenses, are projected to be between US$17,000 and US$20,000, while the average operating cash cost per tonne produced, including selling expenses (shipping, freight, and royalties) are projected to be between US$20,000 and US$25,000 and all-in sustaining costs (AISC)  between US$25,000 and US$30,000. 

Andrada chief executive officer Anthony Viljoen said they made excellent progress in realising the significant economies of scale inherent in this uniquely large ore body. 

Viljoen believes these economies of scale and the bringing online lithium production will rapidly enhance the value of this outstanding asset over the coming months.

"The exceptional fourth quarter production performance demonstrates the execution capability of Andrada's management team. The imminent completion of the bulk testing pilot facility will enable Andrada to expedite lithium production, which could place the company as one of the foremost lithium producers on AIM," he said. 

He added that the concurrent drilling programmes on the proximal pegmatites within the mining licence 134 area aim to increase the size and confidence of this resource. 

"Furthermore, the recently commenced drilling programmes on adjacent licence areas are designed to confirm our belief that the Erongo region is one of the emerging tech-metals provinces globally. Andrada's significant first-mover advantage is its ability to capitalise on the existing proven operational footprint.

"The completion of an inaugural Sustainability Report paves the way for Andrada to not only be a producer of metals for the green transition but also play its role as a responsible and sustainable resource company of the future." 

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