Alphamin Resources Corporation (JSE:APH) News - Alphamin announces maiden mineral resource estimate and positive preliminary economic assessment for Mpama South

Alphamin Resources Corp.
Continued in the Republic of Mauritius
Date of incorporation: 12 August 1981
Corporation number: C125884 C1/GBL
TSX-V share code: AFM
JSE share code: APH
ISIN: MU0456S00006

      ALPHAMIN ANNOUNCES MAIDEN MINERAL RESOURCE ESTIMATE AND POSITIVE
             PRELIMINARY ECONOMIC ASSESSMENT FOR MPAMA SOUTH

07 March 2022 – Alphamin Resources Corp. (AFM:TSXV, APH:JSE AltX, “Alphamin” or the
“Company”), a producer of 4% of the world’s mined tin1 from its high-grade operation in the
Democratic Republic of Congo, is pleased to announce a Mineral Resource estimate and a
positive Preliminary Economic Assessment (PEA) for Mpama South.


HIGHLIGHTS

       - Maiden Mineral Resource declared on Mpama South, making it the second highest
         grade publicly reported CRIRSCO tin Mineral Resource globally1 and one of the largest
         in terms of contained tin with:-
                 •    0.83Mt @ 2.58% Sn for 21.5kt contained tin in the Indicated category; and
                 •    1.95Mt @ 2.52% Sn for 49.1kt contained tin in the Inferred category

       - Significant resource growth potential on Mpama South - drilling continues with
         considerable mineralisation intercepted beyond the Maiden Mineral Resource boundary

       - Positive PEA results for Mpama South:-

                 o    Estimated Annual contained tin production of 7,232 tonnes at an estimated
                      AISC2 of US$15,188/t tin (Basis a US$40,000/t tin price)
                 o    Estimated Annual EBITDA2 of US$187m at an assumed tin price of US$40,000/t
                 o    Estimated capital development cost of US$116m providing a projected short
                      payback in relation to annual EBITDA potential
                 o    Known implementation with similar mining method, mining fleet and processing
                      route as currently applied at the Company’s adjacent Mpama North mine
                 o    Estimated 20-month construction timeline
                 o    Development infrastructure would join up with the currently producing Mpama
                      North mine

1   Data obtained from International Tin Association Tin Industry Review 2020
2
  This is a non-GAAP financial measure, is not standardized and may not be comparable to similar financial measures of other issuers.
See “Use of Non-IFRS Financial Performance Measures” below for a further explanation of this performance metric and how it is
calculated.

Chief Executive Officer, Maritz Smith comments:
“We are delighted to declare a Maiden Mineral Resource estimate and the outcome of a PEA
study on Mpama South. The PEA quantifies the potentially value accretive economics of
expanding production with the development of the adjacent Mpama South mine. Our current
producing Mpama North mine absorbs large fixed costs, which facilitates incremental production
from Mpama South at a competitive marginal cost. Developing Mpama South would bring
Alphamin closer to its vision of becoming one of the world’s largest low-cost tin producers.”

Mpama South Maiden Mineral Resource Estimate Declared
Following completion of the Phase 3 diamond drilling campaign in September 2021 and receipt
of assays, a Mineral Resource Estimation (MRE) for the Mpama South project was commenced
in December 2021. The MRE includes results from 79 drillholes totalling 23,109m, was estimated
using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Best Practice Guidelines
(2019) and is reported in accordance with the 2014 CIM Definition Standards. Mineral Resources
that are not Mineral Reserves do not have a demonstrated economic viability and require
advanced studies and economic analysis to prove their viability for extraction.
The Mineral Resource is classified into the Indicated and Inferred categories and is reported at a
base case tin grade of 1.0%, which satisfies reasonable prospects for economic extraction. The
Mineral Resource Statement with an effective date of 4 March is presented in Table 1:-

                                                                                                Sn Tonnes
    Classification                   Tonnes (millions)                   Sn %                   (thousands)

    Indicated3                       0.83                                2.58                   21.52
    Inferred4                        1.95                                2.52                   49.12

The estimated Mineral Resource for Mpama South does not include the substantial quantity of
subsequent drilling completed in Phases 4 and 5 since September 2021, which yield positive
results with characteristic high grade visual cassiterite in many of the drillholes. Over 40
subsequent drillholes and over 10,000 metres beyond the limits of the Maiden MRE at Mpama
South have been completed since Phase 3 – a visual illustration of mineralised intercepts against

3
  CIM Definition: An Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and
physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors insufficient detail to support mine
planning and evaluation of the economic viability of the deposit.
4
  CIM Definition: An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the
basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality
continuity.

the maiden MRE is illustrated in Figure 1. Subsequent Mpama South MRE updates will be
released throughout the remainder of the drilling phases in 2022 and beyond as assays are
received.

The MRE has been completed by Mr. J.C. Witley (BSc Hons, MSc (Eng.)) who is a geologist with
33 years’ experience in base and precious metals exploration and mining as well as Mineral
Resource evaluation and reporting. He is a Principal Resource Consultant for The MSA Group
(an independent consulting company), is registered with the South African Council for Natural
Scientific Professions (SACNASP) and is a Fellow of the Geological Society of South Africa
(GSSA). Mr. Witley has the appropriate relevant qualifications and experience to be considered
a “Qualified Person” for the style and type of mineralisation and activity being undertaken as
defined in National Instrument 43-101 Standards of Disclosure of Mineral Projects.

 Figure 1: Mpama South and Mpama North becoming one deposit (View from East)

 Source: Alphamin 2022

Preliminary Economic Assessment Results on Mpama South
The PEA encompassed various studies of a mining, metallurgical, environmental and regulatory
nature. They demonstrated the potential viability of expanding production by developing the
Mpama South Mineral Resource through leveraging the adjacent Mpama North Mine services
(power, water, site access, underground infrastructure and personnel) coupled with the
construction of a dedicated second lookalike processing plant and mine portal (Figure 2).
The PEA is preliminary in nature, it includes Inferred Mineral Resources that are considered too
speculative geologically to have economic considerations applied to them that would enable them
to be categorized as Mineral Reserves. There is no certainty that the PEA results will be realized.
Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability,
nor is there certainty that the Mineral Resource will be converted into Mineral Reserves.

Summary results from the PEA are tabulated below:-

 Description                                                                Unit                   Value
 Total run-of-mine (ROM) processed                                         ‘000t                   2,068
 Avg. Annualised ROM mined and processed                                   ‘000t                     468
 Avg. Annualised ROM grade                                                   %Sn                    2.21
 Processing recovery                                                           %                    70.0
 Avg. Annualised Contained tin produced                                   tonnes                   7,232
 Avg. Annualised AISC per tonne contained tin sold (At
                                                                         $/t tin                  15,188
 US$40,000/t tin price)
 Avg. Annualised AISC per tonne contained tin sold (At
                                                                         $/t tin                  14,326
 US$30,000/t tin price)
 Avg. Annualised EBITDA (At US$40,000/t tin price)                       US$’000                 187,310
 Avg. Annualised EBITDA (At US$30,000/t tin price)                       US$’000                 121,220
 Development Capital Estimate                                            US$’000                 115,970
* The outputs are basis 100% of the project. Alphamin indirectly owns 84,14% of the project.

 Figure 2: PEA Development Option (Plan View)

 Source: Alphamin 2022

 Figure 3: PEA Development Option (Oblique View from South West)

 Source: Alphamin 2022

Mining studies were prepared by Bara Consulting (Pty) Limited who provides design and
scheduling services for the operating Mpama North Mine. The study evaluated then selected a
similar mining method and fleet to the current mining activities at Mpama North. An oblique view
of development, stoping, the new portal and proposed connecting development is illustrated in
Figure 3. Substantial exploration drilling after the cut-off date for the Maiden Mineral Resource
estimate has been completed subsequently (Figure 1). This additional mineralisation beyond the
boundaries of the PEA Resource is illustrated in Figure 3 in pink and reached within 40m of
Mpama North underground development.

In October 2021, a representative bulk metallurgical sample derived from Mpama South Maiden
resource drilling holes was exported to Maelgwyn Mineral Services in South Africa for
comparative mineralogical and metallurgical studies. The mineralogy results are similar to the
original Mpama North sample tested by Maelgwyn in 2015, but with marginally higher metal
sulphides and a finer tin deportment. Characterisation testwork delivered results comparable to
the original Mpama North variability testwork and to current plant performance.

A trade-off review was conducted and concluded that constructing a new plant as opposed to
expanding the current plant would be more advantageous in that the current mine production
would not be affected during the plant’s construction.

Bara Consulting (Pty) Limited estimated the capital costs for underground mine development and
infrastructure based on current Mpama North cost structures adjusted, where appropriate, to
reflect the Mpama South design criteria and parameters. Obsideo Consulting (Pty) Limited
completed a detailed engineering costing study to determine the cost of replicating the processing
plant and associated surface infrastructure. These studies formed the basis for the capital
development cost estimate.

The expanded mine, processing plant and infrastructure requires an update to the existing
Environmental Management Plan. Baseline studies have commenced.

Next Steps
In anticipation of further resource updates during 2022, including from in-fill drilling, the Company
will proceed with the appointment of an EPCM contractor, detailed development scheduling and
design work.

Qualified Persons
Mr Jeremy Witley, Pr. Sci. Nat., B.Sc. (Hons.) Mining Geology, M.Sc. (Eng.), is a qualified person
(QP) as defined in National Instrument 43-101 and has reviewed and approved the scientific and
technical information relating to Mineral Resources contained in this news release. He is a
Principal Mineral Resource Consultant of The MSA Group (Pty.) Ltd., an independent technical
consultant to the Company.

Mr. Clive Brown, Pr. Eng., B.Sc. Engineering (Mining), is a qualified person (QP) as defined in
National Instrument 43-101 and has reviewed and approved the scientific and technical
information relating to the PEA contained in this news release. He is a Principal Consultant and
Director of Bara Consulting Pty Limited, an independent technical consultant to the Company.
____________________________________________________________________________

FOR MORE INFORMATION, PLEASE CONTACT:
Maritz Smith
CEO
Alphamin Resources Corp.
Tel: +230 269 4166
E-mail: msmith@alphaminresources.com

JSE Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
____________________________________________________________________________

CAUTION REGARDING FORWARD LOOKING STATEMENTS
Information in this news release that is not a statement of historical fact constitutes forward-
looking information. Forward-looking statements contained herein include, without limitation,
statements relating to the results of the Mpama South PEA, including estimated development
costs, estimated quantities of materials to be mined and processed, estimated grades,
metallurgical recoveries and quantities of tin to be produced, and estimated costs of production
and EBITDA, estimated time for mine construction, the merit and potential viability of the project,
estimated Mineral Resources for Mpama South, anticipated early development work for a mine
at Mpama South and anticipated exploration activities and outcomes. Forward-looking statements
are based on assumptions management believes to be reasonable at the time such statements
are made. There can be no assurance that such statements will prove to be accurate, as actual
results and future events could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking statements. Although
Alphamin has attempted to identify important factors that could cause actual results to differ
materially from those contained in forward-looking statements, there may be other factors that
cause results not to be as anticipated, estimated or intended. Factors that may cause actual
results to differ materially from expected results described in forward-looking statements include,
but are not limited to: uncertainties inherent in estimates of Mineral Resources, mine development
and operating costs, mining volumes, grades and processing recoveries, particularly in light of
the very early stage at which some of these estimates are being made, global economic
uncertainties, volatility of metal prices, uncertainties with respect to social, community and
environmental impacts, uninterrupted access to required infrastructure, adverse political events,
impacts of the global Covid-19 pandemic on mining as well as those risk factors set out in the
Company’s Management Discussion and Analysis and other disclosure documents available
under the Company’s profile at www.sedar.com. Forward-looking statements contained herein
are made as of the date of this news release and Alphamin disclaims any obligation to update
any forward-looking statements, whether as a result of new information, future events or results
or otherwise, except as required by applicable securities laws.

USE OF NON-IFRS FINANCIAL PERFORMANCE MEASURES
This announcement refers to the following non-IFRS financial performance measures:

EBITDA
EBITDA is profit before net finance expense, income taxes and depreciation, depletion, and
amortization. This measure assists readers in understanding the cash generating potential of the
project including liquidity to fund working capital, pay taxes, service debt, and funding capital
expenditures and investment opportunities.

This measure is not recognized under IFRS as it does not have any standardized meaning
prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by
other issuers. EBITDA data is intended to provide additional information and should not be
considered in isolation or as a substitute for measures of performance prepared in accordance
with IFRS.

AISC

This measures the costs to produce a tonne of contained tin plus the capital sustaining costs to
maintain the mine, processing plant and infrastructure. AISC includes mine operating production
expenses such as mining, processing, administration, indirect charges (including surface
maintenance and camp and tailings dam construction costs), smelting costs and deductions,
refining and freight, distribution, royalties and product marketing fees. AISC does not include
depreciation, depletion, and amortization, reclamation expenses, borrowing costs and exploration
expenses. Contractual product marketing fees terminate in August 2024, following which date
zero marketing fees have been included in estimated AISC and EBITDA.

Sustaining capital expenditures are defined as those expenditures which do not increase
contained tin production at a mine site and excludes all expenditures at the Company’s projects
and certain expenditures at the Company’s operating sites which are deemed expansionary in
nature.

Risks relating to Mineral Resource Estimates

The figures for Mineral Resources contained in this news release are estimates only and no
assurance can be given that the anticipated tonnages and grades will be achieved, that the
indicated level of recovery will be realized or that the Mineral Resources could be mined or
processed profitably. There are numerous uncertainties inherent in estimating Mineral Resources,
including many factors beyond the Company’s control. Such estimation is a subjective process,
and the accuracy of any resource estimate is a function of the quantity and quality of available
data and of the assumptions made and judgments used in engineering and geological
interpretation. Short-term operating factors relating to the Mineral Resources, such as the need
for orderly development of the ore bodies or the processing of new or different ore grades, may
cause the mining operation to be unprofitable in any particular accounting period. In addition,
there can be no assurance that metal recoveries in small scale laboratory tests will be duplicated
in larger scale tests under on-site conditions or during production. Lower market prices, increased
production costs, the presence of deleterious elements, reduced recovery rates and other factors
may result in revision of its resource estimates from time to time or may render the Company’s
resources uneconomic to exploit. Resource data is not indicative of future results of operations.
If the Company’s actual Mineral Resources are less than current estimates or if the Company fails
to develop its resource base through the realization of identified mineralized potential, its results
of operations or financial condition may be materially and adversely affected.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this news release.

Appendix 1: SAMPLE PREPARATION, ANALYSES AND QUALITY CONTROL AND QUALITY
ASSURANCE (QAQC)

After receipt of diamond drill core from the drillers at the drill rig in marked core trays, core was
transported to the Company’s core shed by the site geologist for logging and sampling. After
sample mark up, lithological and geotechnical logging and photography, the core was split
longitudinally in half using a water-cooled rotating diamond blade core saw. The cut core was
replaced into the core tray with the half to be sampled facing upward. The Archimedes method of
weight in air vs weight in water was used to provide relative density measurements on the whole
length of the half core that was to be sampled and then replaced in the core trays.

Air dried samples were placed in pre-numbered sample bags together with pre-printed numbered
sample tickets, which were cross-checked afterwards to prevent sample swaps. Sample bags
were sealed using a plastic cable tie and then placed into poly-weave sacks which were in turn
sealed with plastic cable ties. Each poly-weave sack was marked with a number and the sample
numbers contained within, ready for delivery to the on-site Alphamin-Bisie laboratory (managed
by Anchem) for sample preparation.

At the laboratory, samples were first checked off against the submission list supplied and then
weighed and oven dried for 2 hours at 105 degrees Celsius. The dried samples were crushed by
jaw crusher to 75% passing 2mm, from which a 250g riffle split was taken. This 250g split was
pulverised in ring mills to 90% passing 75?m from which a sample for analysis was taken.
Samples were homogenised using a corner-to-corner methodology and two samples were taken
from each pulp, one of 10g for on-site laboratory preliminary assaying and another 150g sample
for export and independent accredited 3rd party laboratory assaying.

For the initial on-site laboratory assay, 10 grams of pulverised sample is mixed with 2 grams of
binder before press pellet preparation at 20t/psi for 1 minute. Press pellets are analysed in a
desktop Spectro Xepos XRF analyser, twelve at a time, for Sn, Fe, Zn, Cu, Ag, Pb and As along
with a standard, duplicate and blank. The analytical method conducted on the pressed pellet has
an expected 10% precision and an upper detection limit of 70,000ppm and lower detection limit
of 500ppm. Over-limit samples are titrated by wet chemistry with an upper limit validation of 70%
Sn. The on-site laboratory assays are merely an exploration tool and were not used for reporting
the exploration results or Mineral Resource estimation, which are based solely on the ALS assays.

The 150g sample is packaged in sealed paper sample envelopes and packed in a box for export
in batches of approximately 500 samples and prepared for export authorisation with national
authorities. Once authorisation is received, samples are air-couriered to ALS Global in
Johannesburg South Africa, a subsidiary of ALS Limited, which is an independent commercial
analytical facility. ALS operations are ISO 9001:2015 certificated and the Johannesburg office is
ISO 17025 accredited for Chemical Analysis by SANAS (South African National Accreditation
System, facility number T087), although the accreditation does not extend to the methods used
for tin.

Received samples at ALS Johannesburg are checked off against the list of samples supplied and
logged in the system. Quality Control is performed in the way of sieve tests every 50 samples and
should a sample fail, the preceding 50 samples are ground in a ring mill pulveriser using a carbon
steel ring set to 85 % passing 75?m. Samples are analysed for tin using method code ME-XRF05
conducted on a pressed pellet with 10% precision and an upper limit of 5,000ppm. The over-limit
tin samples are analysed as fused disks according to method ME-XRF15c, which makes use of
pre-oxidation and decomposition by fusion with 12:22 lithium borate flux containing 20% Sodium
Nitrate as an oxidizing agent, with an upper detection limit of 79% Sn.

Method code ME-ICP61 (HF, HNO3, HClO4 and HCl leach with ICP-AES finish) is used for 33
elements including base metals. ME-OG62, a four-acid digestion, is used on ore grade samples
for lead, zinc, copper and silver. Both methods are accredited by SANAS.

The program is designed to include a comprehensive analytical quality assurance and control
routine comprising the systematic use of Company inserted standards, blanks and field duplicate
samples, internal laboratory standards and analysis at an accredited laboratory. The pulps were
accompanied by blind QAQC samples inserted into the sample stream by the Alphamin-Bisie
geologists. These comprised blank samples, certified reference materials and pulp duplicates
each at an insertion rate of approximately 5%.

The QAQC results demonstrate that the assay results are both accurate and precise with an
insignificant amount of contamination (in the order of 10pmm Sn on average) and negligible
sampling errors.

Laboratory verification work was conducted by check assays conducted at SGS South Africa (Pty)
Ltd. This included 105 check samples submitted in November 2021. These samples comprised
duplicated pulps from the maiden resource drillholes derived from the sample preparation at the
on-site laboratory. CRMs and blanks to an appropriate level also formed part of the 105-sample
submission. Check assay results showed that there was a near zero overall bias and that inter-
lab precision, after removal of  1% is less than 1%.
                                          o Tendency for ALS to be higher (~5%) for the grade ranges
                                            less than 1%.
                                    •    Inter-lab precision (after removal of