Andrada mining’s cash and cash equivalent balance on 28 February 2023 was US$10.3 million (nearly N$200 million) which the company says provides sufficient capital to execute its near-term capital commitments for its lithium pilot facility and tantalum circuit, whilst in the interim the various conditions precedent for the additional financing are being completed.
This is a rise from the US$9.9 million balance recorded on 28 February 2022.
“The lithium pilot plant project is progressing to schedule, with the completion of construction targeted for June 2023. The project is approximately 60% complete with all long lead equipment ready for shipment to the mine. The major plant equipment is being manufactured off-site and the earthworks have been completed. The tantalum circuit construction is approximately 50% complete and on track for full completion in June 2023.
“Meanwhile, several early revenue options are being evaluated such as potential output of lithium concentrate from the lithium bulk testing facility,” the miner said in a statement last week.
Subsequently, Andrada has said tin production will jump in 2023.
Meanwhile, tin output at Uis ran at record levels in the final quarter of 2022, with 361 tonnes (t) of concentrate and 214t of metal produced. For 2002 overall, production was 960t of concentrate, a 19% increase, with metal up 18% at 596t.
Andrada also said sustainable costs (AISC) fell 9% on average and in the final quarter were its lowest ever at US$18,236/t.
For the current year, Andrada forecasts tin concentrate production will be between 1,400t and 1,500t, an expected increase of between 45% to 56% year-on-year, due to the plant expansion ramp-up.
Average operating cash costs are guided to US$17,000t and US$20,000t, rising to between US$20,000t and US25,000t on a cash basis and US$25,000t and US30,000t (AISC) including transport due to a temporary increase in stripping rates and the 4.5% royalty costs associated with the proposed Orion transaction.
Significant progress had been made towards fulfilling the precedent conditions for the Orion and the Development Bank of Namibia financing, it added, while cash at the year-end had risen 16% to £8.6mln.
Exploration in 2023 will focus on drilling the ML129 licence area for visible spodumene (lithium) mineralisation and field mapping of targets on the ML133 licence.
Andrada said it is also exploring several options for achieving early lithium revenues in the second half of the 2023 calendar year including concentrate production from the bulk pilot plant.
Anthony Viljoen, Chief Executive Officer, commented:”The exceptional fourth quarter production performance is a demonstration of the execution capability of Andrada’s management team. We have made excellent progress in realising the significant economies of scale inherent in this uniquely large ore body. We believe these economies of scale and the bringing online of lithium production will rapidly enhance the value of this outstanding asset over the coming months.
“The imminent completion of the bulk testing pilot facility will enable Andrada to expedite the production of lithium, which could place the Company as one of the foremost lithium producers on AIM. Concurrent drilling programmes on the proximal pegmatites within the ML 134 licence 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.”
The Uis proximal drilling campaign, on the ML134 mining licence commenced in February 2023 and aims to validate the historical drill information and increase confidence in the mineral resource classification for tin. This campaign will also provide initial information on the lithium and tantalum endowment of these pegmatites. Approximately 78 drill holes have been planned for an initial programme that targets the southern cluster, following which an investigation will target the pegmatites north of the V1V2 resource. An improvement in the mineral resource confidence classification will allow for the inclusion of the proximal pegmatites into the techno-financial valuation of the project.
The miner also said, Frans Van Daalen has been appointed as chief strategy officer with Chris Smith chief operations officer.