Alphamin brochure - April 2016

Pulling tin

Pullin

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Written by: Nell Walker Produced by: Anthony Munatswa

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Alphamin Resources is in the process of building a mine on one of the world’s highest grade tin deposits, providing jobs and stability and contributing to sustainable long-term development for locals in a country that has suffered conflict for many years.

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auritius-based mining company Alphamin Resources bought and began developing at the Bisie tin project in 2011. The company is listed on the Toronto Stock Exchange, and its DRC project holding company has the Democratic Republic of Congo’s government as a 5 percent shareholder with the Industrial Development Corporation as an 11 percent shareholder (expected to soon be 15 percent). Alphamin is developing a mine and processing plant to mine the most developed of its resource targets, Mpama North, and Boris Kamstra, Alphamin CEO, explains its current status: “We completed a feasibility study last month; we are now aiming to

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raise the capital required to build the mine and then start building it,” he states. “We want to be in production by 2018, so my job is to get the money to do that, make sure the team on the ground is doing what it needs to do, and ensure they have what they require to succeed.”

Kamstra considers Bisie more than just a mining project: “It’s in the jungles of the Walikale region, which is a region that has had a difficult recent history from which it is now emerging. The mine’s location is very remote, but the potential for Alphamin to materially change the region is enormous.

Throughout our management team is a very strong component of wanting to be part of a project that makes a difference which

“Throughout our management team is a very strong component of wanting to be part of a project that makes a difference which ensures that they will make this a success due to the positive impact it’ll have” – Boris Kamstra, CEO

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AFRICAN

Innovate Adapt Lead

2000 wells have been drilled by African Drilling Limited

T +256 75 045 7742 T +256 77 231 6123 E glen@africandrilling.com www.africandrilling.com

With over 30 years African Drilling is your in the African mining e

The quality of our Service in such a tough environment is impressive. However it is the culture of success in African Drilling that sets apart with prioritization on safety and training.

African Drilling employs a team of passionate specialists who bring a world of experience, technical knowledge and understanding, and in this requires management to be active in the day to day drilling operations.

Our people understand the critical nature of obtaining contaminant free samples that accurately reflect the underlying mineral deposits. Our team understands the time-sensitive nature of achieving Customer deadlines. Our team understand the importance of adhering to our Corporate Responsibility Promise.

These skill sets are very difficult to obtain in Africa and a true differentiator of the African Drilling success.

We are a leading exploration drilling compan providing responsible solutions for the most extreme mineral and energy challenges in Africa. During our 20 years of experience in Africa we have managed and provided comprehensive turnkey drilling solutions for mineral exploration and speciality drilling need

INTERNATIONAL DRILLING SOLUTIO

Trading as African Drilling Plot No 8004, Kayongo Road, Kisungu Kampala, Uganda

s experience trusted partner endeavours

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African Drilling specialize in the following core services areas • • • •

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Integrated Drilling Solutions Management Project Management Geotechnical Construction Drilling Production, Dual Wall Reserve Circulation Drilling, Diamond Core Drilling, Large, Diameter Core Drilling, Percussion Hammer Drilling, Mud Rotary drilling, Flooded Reverse Circulation Wedging, directional, non-directional, navi drilling, mud deflections, window deflections Core sampling in difficult ground conditions, with mud technicians onsite, gas sampling, packer testing and SPT. All types of surveys (gyro and magnetic) and orientation Rig Management Support and Maintenance Contract Labour Logistics, supply chain and transportation

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ONS (U) LTD

DR CONGO - Office Address

Commune De Goma, Q.Les Volcans, Karisinbi No 3 Goma DRC +243 81 564 7759

1981 The year Alphamin Resources was founded

ensures that they will make this a success due to the positive impact it will have, and how we reduce the challenges in front of us.

“Building and operating a mine at Bisie will not be a simple operation, one has to think through all of the potential issues one may have to confront and develop plans to deal with them. There are no other projects in the world I can think of that have the combination of extraordinarily positive project fundamentals, and a whole development impact attached to it along with many challenges and opportunities. It’s actually a draw for employees and community members sensing economic development; a lot of people

“There are no other projects in the world I can think of that have the combination of extraordinarily positive project fundamentals, and a whole development impact attached to it along with many challenges and opportunities” – Boris Kamstra, CEO

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have approached us wanting to be part of this.”

Within the latest arm of Alphamin’s tin mining project operating between 2017 and 2018, a processing plant will be built to produce around 9,000 tonnes of tin in concentrate per year. The company has had to adopt a unique approach to its supply chain due to the remote location: “It’s a little tricky in that many of the roads we are going to be using are not passable by your average truck,” says Kamstra. “So what we are planning to use is a shunt system.

“We’ll have six-by-six or eight-by-eight militarytype vehicles that can carry a 20-tonne container,

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Alphamin’s Bisie Camp Annotated

and this will run between a suitably located depot and the mine. We are going to have to consolidate all our supplies and logistics at one depot, and that will be everything from diesel right through to consumables.

These will then be packed into specially designed containers for the trip to the mine. Once unloaded they will return with twenty tons of tin concentrate packed into them.”

According to Kamstra, logistics and transport are less important than they would be for less valuable materials which require efficient bulk transport systems.

“We manage logistics in a pretty basic and fundamental way,” he says. “We’re using a combination of existing technologies and readily available solutions in the area, and we incorporate the relevant ones that work for us into our operational plan.”

Far from wishing to corner the DRC market for itself, Kamstra hopes that Alphamin will prove to be a catalyst for other companies

to come to the area: “If other businesses come in, that’s to our advantage and to that of the North Kivu province. The more companies you have operating, the more business will emerge. This has multiple effects in terms of economic activity; it’s like a snowball. It continues to roll and makes everything easier for everyone.

“We are in the tin market because we believe the price pressure for tin is going to come from the supply side rather than the demand side.

The reason for that is historic; tin was largely a forgotten commodity until its incorporation into solder, and it’s rather tricky to find economically viable deposits of tin. Prices have flown up recently; they did die down a little reaching a low point at the beginning of the year, but we’re delighted to see they have started to improve recently.

“It is estimated that the industry needs tin prices of about $22,000 a tonne in order to provide sufficient feed from 2018 onwards, because

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“We are developing a secure supply of fundamental material, our customers have to expend almost zero money ensuring it’s conflict-free” – Boris Kamstra, CEO other projects that are waiting in the wings require that kind of price to get going. However, we’re doing okay at the current pricing. It gives us a robustness and ability to absorb market gyrations which makes for a very nice business model while we move into production before 2019.”

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The DRC, Kamstra explains, is an incredibly wealthy area from a natural resource perspective.

“Mining, hydrocarbons, agriculture, forestry, fresh water for cultivation and hydroelectricity – it has everything in abundance. However, when the US conflict mineral

legislation came out in 2010, the informal tin mining industry in the DRC collapsed because they could not get decent prices, as the material was not certified as conflictfree. Despite this potential wealth, very little benefits of mineral extraction have reached local populations historically in the DRC, and especially from recent illegal artisanal production of conflict minerals. Therefore Alphamin has committed to a relatively strong community social investment of 4 percent of operating expenditures to be invested in local economic, health, education and social infrastructure through a community-driven not-for-profit.

“Alphamin can offer absolutely clean, 100 percent certified conflict-free tin from this region, so our end users will be assured of a continued supply of tin, which is something a lot of people are getting worried about and that it will be easily verifiable as conflict free. We are developing a secure supply of fundamental material for the modern economy, our customers will have to expend almost zero money ensuring it’s conflict-free, and by purchasing the product, they are materially improving the lives and general wellbeing of the local people. That’s a high-value proposition for the tin industry in general and certainly for most end users.”

350 The total number of staff employed

by Alphamin Resources

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ALPHAMIN RESOURCES C/o Adansonia Management Services Limited, C2-202, Level 2, Office Block C, La Croisette, Grand Baie, Mauritius 30517 Tel. +(230) 269 4166 / Fax. +(230) 269 7438 boris.kamstra@alphaminresources.com / www.alphaminresources.com