(MENAFN - ProactiveInvestors - Australia) Kasbah Resources (ASX: KAS) has discovered high grades of up to 10.3% tin near surface in recent drilling at its Achmmach Tin Project in Morocco.
Drilling of sections 3010mE and 3050mE is targeting the upgrade of Inferred resources in the Eastern Zone and has defined strong potential for shallow mineralisation in the TZ301 envelope.
A highlight intercept of 1 metre at 10.3% tin was returned from within a broader 5.2 metres at 3.98% tin from 76.4 metres drilled in section 3050mE.
Other notable intercepts include:
- 8 metres at 1.61% tin from 99 metres, including 2 metres at 4.21% tin;
- 7 metres at 1.08% tin from 320 metres; and
- 5 metres at 1.5% tin from 105 metres, including 2 metres at 3.18% tin.
- 10.3 metres at 1.48% tin from 280.7 metres; and
- 9 metres at 0.98% tin from 86 metres, including 3 metres at 2.06% tin from 86 metres.
Wayne Bramwell , managing director of Kasbah Resources, told Proactive Investors today the shallow results from the Achmmach Tin Project have increased the company's confidence for the opportunity for a shallow pit on the Mekns Trend.
"Any pit, even small, allows us access to early ore and may provide a new location to start the underground decline.
"We will investigate this shallow mineralisation further over the next few months."
Four new diamond holes were drilled in each of the two sections.
Highlighting the exploration upside, drilling at section 3050mE strongly suggests high grade, shallow mineralisation continues at depth.
Drilling results from section 3050mE strongly suggest the continuity of the mineralisation related to the TZ301 envelope located about 10 metres shallower than predicted.
Its mineralisation style, thickness, grade and trend is consistent with the surface anomaly found by rock chip sampling.
The mineralisation in the TZ601 envelope was intercepted at its planned depth and a new mineralised zone, which was not considered in the resource model was found at the 850RL.
A separate drill plan focusing on the shallow potential of the TZ301 envelope between sections 3010mE and 3090mE is currently being reviewed.
Meanwhile, drilling on section 3010mE returned good indications of the potential for shallow mineralisation within the TZ301 envelope.
Grade and thickness are as predicted by the resource model.
Drilling confirmed the location of the TZ601 tourmaline envelope at depth over a dip length of 110 metres, which remains open up and down dip.
Drilling continues with four rigs currently operational.
Drilling on the 40 metre spaced drill sections in the Eastern Zone toward section 3300mE is close to complete, while the 20 metre spaced drill sections in the area between 2430mE and 2510mE has now started and is testing the resource model at relatively tight drill spacing.
An updated resource is scheduled for release in the March quarter of 2013.
Today's results show the high grade, shallow mineralisation possible at the Achmmach Tin Project, and the large scale, with mineralisation open at depth.
Achmmach is the largest undeveloped hard rock tin project in the world with a resource of 14.6 million tonnes at 0.9% tin for 135,000 tonnes of contained tin.
Kasbah continues to meet all milestones in its quest to become a tin producer.
The September quarter for Kasbah was a milestone in that this is the first quarter that Kasbah has drilled two tin projects concurrently.
A new drilling record of 12,881 metres was achieved for the quarter, with 11,527 metres of diamond drilling carried out across the Meknes Trend at Achmmach.
On completion of the current infill program, Kasbah will have completed about 85,000 metres of diamond drilling, covering the entire 2 kilometre length of the Meknes Trend.
A resource upgrade is due in the March quarter of 2013 and the Definitive Feasibility Study is scheduled to run until the December quarter 2013, both potential catalysts for re-rating.
Kasbah is extremely well-funded with A25.7 million in cash at the end of the September 2012 quarter.
The company also has the backing of Asia's premier tin trading house and one of the largest companies in the world, Toyota Tsusho Corporation, which is acquiring up to a 20% interest in Achmmach, demonstrating the international recognition the project is receiving.
Lion Selection Group is also a substantial shareholder in Kasbah with a 15.1% interest held through the US79 million African Lion 3 fund.
Proactive Investors considers the "pull-back" in the Kasbah share price has been overdone and that there is potential for it to move back up to 0.25 given the insitu value of the resource and the milestones ahead.