Andrada Mining said tin production will jump in 2023 while a bulk testing pilot on lithium from its Uis mine in Namibia will also complete in June.
A process had been identified by Geolabs Global, its independent test facility in South Africa, to produce a lithium concentrate suitable for buyers’ specifications in industrial and battery feedstock markets, the miner added.
Elsewhere, tin output at Uis ran at record levels in the final quarter of 2022, with 361 tonnes of concentrate and 214 tonnes 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$18,236t.
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 £8.6 million.
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.
Frans Van Daalen, meanwhile, has been appointed as chief strategy officer with Chris Smith chief operations officer.
Anthony Viljoen, chief executive, said: “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 bodWe 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.”
