Alphamin Announces a 34% Increase in Measured and Indicated Mineral Resources for Its Bisie Tin Project, DRC

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GRAND BAIE, MAURITIUS–(Marketwired – May 11, 2016) –

UPDATE HIGHLIGHTS

  • The updated Mineral Resource includes:
    • Measured Resource of 0.46 million tonnes @ 4.31% Sn for 19,600 tonnes contained tin using a 0.5% tin cut-off grade
    • Indicated Resource of 4.14 million tonnes @ 4.55% for 188,400 tonnes contained tin using a 0.5% tin cut-off grade
    • A 34% increase in contained tin in the Measured and Indicated Categories from October 2015 Mineral Resource Estimate used for the FS study
  • Inferred resource of 0.54 million tonnes @ 4.25% Sn for 22,800 tonnes contained tin using a 0.5% Sn cut-off
  • The tin mineralisation has a strong chute geometry with a high grade chute interpreted to plunge to the north and is open at depth
  • The mineral resource was defined over 700m down plunge and has a vertical depth of 550m
  • Significant new results included in the Resource Estimate from infill and deep drilling at Mpama North included:
    • 16.01m @ 22.5% Sn from 387.45m including 6.95m @ 38.45% Sn from 390.25m
    • 12.5m @ 10.93% Sn from 336.7m including 2.25m @ 49.87% Sn from 346.95m
    • 13.8m @ 7.53% Sn from 317.65m including 4.5m @ 19.74% Sn from 324.2m
    • 15.85m @ 6.09% Sn from 399.5m including 3.75m @ 18.11%Sn from 409.25m
  • Highly significant results support:
    • An increase in tin grade with depth
    • Tin mineralisation continues down dip and is open along strike and at depth
    • Excellent potential to define significant additional tin resources to increase LOM at Mpama North
    • Exciting further confirmation of the investment potential of the Bisie Tin Project

Alphamin Resources Corp. (“Alphamin” or the “Company”) (TSX VENTURE:AFM) is pleased to announce a significant increase of 34% to its Measured and Indicated Mineral Resources at the Mpama North prospect of the Bisie Tin Project in North Kivu in the east central region of the Democratic Republic of Congo (“DRC”). The 34% increase to the Measured and Indicated Mineral Resource (at a cut-off of 0.5% Sn) from that announced in October 2015 follows new results from infill and deep drilling at the Mpama North prospect.

“This positive development confirms the quality of the Bisie Tin Project and is another positive step supporting the development of the mine at Mpama North at Bisie,” states Boris Kamstra, Chief Executive Officer of Alphamin. “These new results support an increase in tin grade with depth as tin mineralisation continues down dip and is open along strike and at depth. The results underpin excellent potential to define significant additional tin resources to increase LOM at Mpama North, thus unlocking exciting further investment potential of the Bisie Tin Project,” says Kamstra.

The updated Mineral Resource estimate at Mpama North has increased the Mineral Resources over that used in the FS study to 4.60 million tonnes @ 4.52% Sn for 208,100 tonnes contained tin (at 0.5% Sn cut-off) in the Measured and Indicated Categories and 0.54 million tonnes @ 4.25% Sn for 22,800 tonnes contained tin (at 0.5% Sn cut-off) in the Inferred Category as shown in Table 1 below.

The Measured and Indicated Mineral Resources increased by 34% contained tin to that announced in the Indicated category in October 2015. The Inferred Mineral Resource decreased by 41% contained tin with additional Inferred Resources being transferred to the Measured and Indicated categories through results of infill drilling, a revised structural interpretation and additional borehole survey data. The area of all three categories for the Main Vein are shown in Figure 1 below.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/alphamin_resources_may11_fig1-3.pdf

Table 1: Bisie Mpama North Zone Mineral Resource at 0.50% Sn Cut-Off Grade, 11 May 2016
Category Tonnes Sn Sn Tonnes Cu Zn Pb Ag
(Millions) % (Thousands) % % ppm g/t
Measured 0.46 4.31 19.6 0.22 0.12 0.007 1.4
Indicated 4.14 4.55 188.4 0.32 0.16 0.010 2.8
Total M&I 4.60 4.52 208.1 0.31 0.15 0.010 2.7
Inferred 0.54 4.25 22.8 0.16 0.09 0.013 1.4
Table 1 Notes:
1. All tabulated data has been rounded and as a result minor computational errors may occur
2. Mineral Resources which are not Mineral Reserves have no demonstrated economic viability
3. The Gross Mineral Resource for the Project (in which Alphamin holds an 84.55% interest) is reported
4. M&I is Measured and Indicated Mineral Resources

The robust and high grade nature of the orebody is further demonstrated in the grade-tonnage Tables 2 and 3 which indicate that should the Measured and Indicated Mineral Resource be reported at a 2% Sn cut-off grade; tonnages are 3.07 million tonnes @ 6.11% Sn for 187,700 tonnes contained tin with 0.33 million tonnes @ 6.21% Sn for 20,200 tonnes contained tin reported for the Inferred Category. The Measured and Indicated Mineral Resource has been tabulated using a number of cut-off grades as shown in Table 2 and the Inferred Mineral Resource in Table 3.

Table 2
Bisie Mpama North Zone Measured and Indicated Mineral Resource Grade Tonnage Table,
11 May 2016
Cut Off Tonnes Sn Sn Tonnes Cu Zn Pb Ag
Sn% (Millions) % (Thousands) % % ppm g/t
0.25 4.66 4.47 208.3 0.31 0.15 0.010 2.6
0.50 4.60 4.52 208.1 0.31 0.15 0.010 2.7
0.75 4.44 4.66 207.1 0.32 0.16 0.010 2.7
1.00 4.23 4.85 205.2 0.32 0.16 0.010 2.7
1.50 3.67 5.40 198.2 0.33 0.16 0.010 2.8
2.00 3.07 6.11 187.7 0.34 0.17 0.010 2.9
Table 3
Bisie Mpama North Zone Inferred Mineral Resource Grade Tonnage Table.
11 May 2016
Cut Off Tonnes Sn Sn Tonnes Cu Zn Pb Ag
Sn% (Millions) % (Thousands) % % ppm g/t
0.25 0.55 4.17 22.9 0.16 0.09 0.012 1.4
0.50 0.54 4.25 22.8 0.16 0.09 0.013 1.4
0.75 0.51 4.40 22.7 0.17 0.09 0.013 1.5
1.00 0.48 4.63 22.4 0.17 0.10 0.013 1.5
1.50 0.38 5.58 21.1 0.19 0.10 0.014 1.6
2.00 0.33 6.21 20.2 0.19 0.11 0.014 1.6
Table 2 and 3 Notes:
1. All tabulated data has been rounded and as a result minor computational errors may occur
2. Mineral Resources which are not Mineral Reserves have no demonstrated economic viability
3. The Gross Mineral Resource for the Project (in which Alphamin holds an 84.55% interest) is reported

The updated Mineral Resource was prepared by an independent consulting firm, The MSA Group (MSA), of Johannesburg, South Africa and was estimated using The Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Best Practice Guidelines (2003). The updated Mineral Resource is reported in accordance with the 2014 CIM Definition Standards which have been incorporated by reference into National Instrument – 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”). A technical report prepared in accordance with NI-43-101 with respect to the updated Mineral Resource estimate will be filed on www.sedar.com and announced by Alphamin at the time of filing.

The updated Mineral Resource estimate is based on tin, copper, lead, zinc and silver assays and density measurements obtained from the cores of 122 NQ size diamond drill holes, which were completed by Alphamin between July 2012 and November 2015, inclusive. In addition to the exploration drill holes, the split cores from 21 PQ size holes were used in the estimate. These holes were drilled in three clusters for the purpose of obtaining a metallurgical test sample.

The updated Mineral Resource includes results received from the final 13 holes for 4,433m from the drilling programme at Mpama North which was completed in November 2015. Holes were drilled to better delineate the up dip limit and continuation of the high grade mineralisation within the northerly plunging chute at depth and to close off mineralisation in the Wedge target area adjoining Mpama North to the south. A number of infill holes were also drilled to convert Inferred Mineral Resources to the Indicated category. The Company has now stopped drilling to allow for the construction and development phase as follow up to the positive FS studies.

Latest significant drilling results from infill and deep extension drilling at Mpama North included in the updated Mineral Resource Estimate are summarised in Table 4 and shown in Figure 2 and include:

  • 16.01m (true width 13.4m) @ 22.5% Sn from 387.45m including 6.95m (true width 5.8m) @ 38.45% Sn from 390.25m in BGC166
  • 12.5m (true width 10.5m) @ 10.93% Sn from 336.7m including 2.25m (true width 1.9m) @ 49.87% Sn from 346.95m in BGC165B
  • 13.8m (true width 11.6m) @ 7.53% Sn from 317.65m including 4.5m (true width 3.8m) @ 19.74% Sn from 324.2m in BGC167
  • 15.85m (true width 13.2m) @ 6.09% Sn from 399.5m including 3.75m (true width 3.1m) @ 18.11%Sn from 409.25m in BGC148
  • 12.8m (true width 10.8m) @ 4.14% Sn from 489.2m including 6m (true width 5.1m) @ 8.29% Sn from 491.5m in BGC150

Tin mineralisation is associated with a steeply dipping (~65° east) north to south striking zone of intense chlorite alteration contained within micaceous schists. The main tin bearing chloritized zone is on average approximately 9m thick and narrower subordinate zones occur several metres above and below the main zone in certain areas. The mineralisation occurs in the form of irregular high grade veins of botryoidal cassiterite (“wood tin”) several tens of cm thick and blebs and vein fragments of cassiterite irregularly disseminated in the chlorite schist.

The mineralised zone contains two parallel high grade chutes separated by a zone of economic, lower grade mineralisation that plunge approximately 35° to the north. The chutes appear to merge with depth with best grades reported from the deepest holes drilled to the north supporting a distinct increase in grade of mineralisation which is open at depth. The Mineral Resource area extends over approximately 300m in the plane of mineralisation perpendicular to the plunge direction.

The updated Mineral Resource was limited to deeper than approximately 50 m below surface in the area where artisanal mining has taken place, as the quantity of remaining mineralised material in the affected area cannot be stated within reasonable limits. The deepest Mineral Resources reported are approximately 550 m below surface and the Mineral Resource extends for 700m in the down plunge direction, the high grade mineralisation being open in the northerly plunging direction as shown in Figure 2 below.

To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/alphamin_resources_may11_fig1-3.pdf

The Company is confident of adding additional high grade resources at depth at Mpama North and at Mpama South located 750m to the south along the ridge where mineralisation is potentially confined to a similar high grade chute where best results of 32m @ 2.46% Sn from 192.2m and 6.7m @ 2.34% Sn from 146m were reported previously. In addition, significant tin, copper, lead, zinc and arsenic anomalies have been identified within the same geophysical setting along the 15km ridge at Bisie as shown in Figure 3 below and will be followed up with a ground IP survey and drilling to identify areas of potential new discovery.

To view Figure 3, please visit the following link: http://media3.marketwire.com/docs/alphamin_resources_may11_fig1-3.pdf

According to Alphamin’s feasibility study for the Bisie Tin Project published in February 2016, the project is expected to have operating costs of USD$8,450 per tonne, landed in Malaysia and, based on the prior Indicated Mineral Resource of 3.94 million tonnes @ 3.94% Sn for 155,300 tonnes of contained tin announced in October 2015 and a tin price of $14,800 a tonne, was expected to offer a rate of return of 36.4 percent after tax. Since the publication of the feasibility study, Alphamin’s Measured and Indicated Resources have increased by 34% with a substantial grade increase coupled with an increase in the spot tin price which has since increased to $17 476.00 /mt (LME on 9/5/2016).

“Given that the ITRI is forecasting a significant shortage in the supply of tin from 2018, and that there are few other new industrial-scale tin mines outside of Myanmar and China which don’t face significant technical, financing, permitting and other challenges, Bisie is one of the most advanced tin projects currently being developed. It has the significant advantages of being one of the highest grade known undeveloped tin ore bodies in the world with favourable metallurgical properties and an approved mining license and. we expect it to become the next significant tin producer,” concludes Kamstra.

QUALIFIED PERSON

Mr. J.C. Witley (BSc Hons, MSc (Eng)) is a Principal Mineral Resource Consultant for The MSA Group, an independent geological consulting company to Alphamin and a “Qualified Person” as defined in National Instrument 43-101 Standards of Disclosure of Mineral Projects. Mr Witley has reviewed and approved the scientific and technical information contained in this news release.

ABOUT ALPHAMIN

Alphamin Resources Corp.is a company registered in Mauritius by continuation and listed on the TSX Venture Exchange in Canada (Ticker symbol: AFM)., Alphamin Bisie Mining SA (ABM)is a 84.55% held subsidiary and holder of the licences comprising the Bisie Tin Project located in the North Kivu Province of the Democratic Republic of Congo (DRC). Five percent (5%) of the shareholding of ABM is held by the DRC State in compliance with the mining code on granting of PE 13155 and a 10.45% interest is held by the Industrial Development Corporation of South Africa Limited (“IDC”).

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 mineral reserve estimates, mineral resource estimates, realization of mineral reserve e and resource estimates, capital and operating costs estimates, the timing and amount of future production, costs of production, success of mining operations, the ranking of the project in terms of cash cost and production, permitting, economic return estimates, power and storage facilities, life of mine, social, community and environmental impacts, metal markets and sales prices, purchasers for Alphamin’s products, environmental assessment and permitting, securing sufficient financing on acceptable terms, opportunities for short and long term optimization of the Bisie Tin Project, and continued positive discussions and relationships with local communities and stakeholders. 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: Alphamin’s ability to secure sufficient financing to advance and complete the Bisie Tin Project, uncertainties associated with Alphamin’s resource and reserve estimates, uncertainties regarding global supply and demand for tin and market and sales prices, uncertainties associated with securing off-take agreements and customer contracts, uncertainties with respect to social, community and environmental impacts, adverse political events, uncertainties with respect to optimization opportunities for the Bisie Tin Project, 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.

TABLE 4: SUMMARY OF ASSAY RESULTS IN LATEST DRILL HOLES

Hole ID GPS Easting GPS Northing RL EOH Azimuth Inclination From (m) To (m) Width (m) Sn (%) Ag (g/t) Pb (%) Zn (%) Cu (%) La (ppm) Type
BGC148 583209 9886077 728 423 270 -60 399.5 415.35 15.85 6.09 7.0 0.00 0.23 0.82 103.8 Infill
Incl. 409.25 413 3.75 18.11 9.9 0.00 0.46 1.14 148.4
BGC150 583268 9886076 716 508 270 -60 474 475 1 0.00 5.4 0.09 1.73 0.02 20.0 Infill
489.2 502 12.8 4.14 1.5 0.00 0.07 0.13 110.2
Incl. 491.5 497.5 6 8.29 1.4 0.00 0.07 0.15 133.7
BGC159 583219 9885981 695 416.5 270 -60 399 408.5 9.5 2.76 1.7 0.01 0.07 0.11 84.0 Infill
Incl. 403.3 406.7 3.4 7.04 2.1 0.01 0.07 0.13 117.4
408.5 413.4 4.9 0.03 3.6 0.01 0.02 0.23 136.7
BGC161 583145 9886134 726 383 270 -60 325 326 1 0.00 0.0 0.00 1.57 0.07 30.0 Extension
346.55 347 0.45 2.20 0.0 0.00 0.03 0.06 10.0
354.25 355.2 0.95 2.74 3.6 0.03 0.22 0.10 45.3
356 360 4 0.03 1.9 0.00 0.09 0.22 55.0
367.45 370.8 3.35 0.29 8.1 0.09 0.29 0.29 24.6
BGC162 583273 9886031 720 468.1 270 -60 440.9 441.5 0.6 0.01 3.7 0.02 0.07 0.50 20.0 Infill
447.6 458.7 11.1 0.33 3.2 0.01 0.04 0.19 112.1
Incl. 451.5 454.65 3.15 0.56 1.2 0.00 0.06 0.08 83.2
458.7 461 2.3 0.01 8.9 0.01 0.01 1.00 133.9
BGC164 583076 9886091 750 322 270 -60 257.9 258.45 0.55 0.01 1.4 0.01 1.71 0.05 30.0 Extension
290.15 297.35 7.2 0.95 0.1 0.01 0.09 0.05 45.3
297.35 300 2.65 0.03 1.4 0.01 0.08 0.27 96.4
302 303 1 0.16 0.0 0.01 0.03 0.02 50.0
BGC165B 583136 9886085 725 359 270 -60 305.7 308.6 2.9 0.01 6.0 0.07 0.81 0.05 43.1 Infill
336.7 349.2 12.5 10.93 1.9 0.01 0.31 0.18 80.5
Incl. 346.95 349.2 2.25 49.87 0.5 0.00 0.01 0.15 102.2
BGC166 583186 9886139 733 412.5 270 -60 381.65 383.35 1.7 0.01 2.3 0.00 0.07 0.32 10.9 Extension
387.45 403.46 16.01 22.50 1.4 0.01 0.12 0.29 58.8
Incl. 390.25 397.2 6.95 38.45 0.9 0.00 0.08 0.24 38.4
409 411.8 2.8 0.00 1.6 0.00 0.01 0.27 38.6
BGC167 583138 9885931 734 343.5 270 -60 317.65 331.45 13.8 7.53 8.3 0.00 0.25 1.13 82.2 Infill
Incl. 324.2 328.7 4.5 19.74 10.2 0.00 0.28 1.38 56.0
332.25 333 0.75 0.01 1.1 0.01 0.01 0.14 70.0
BGC168 582977 9885564 735 99.15 270 -50 NSR Wedge
BGC169 583024 9885631 736 249 270 -75 187.65 193.55 5.9 0.00 23.8 1.43 3.10 0.12 26.4 Wedge
195.3 196.7 1.4 0.44 1.4 0.01 0.13 0.06 60.0
202.65 204.95 2.3 0.01 1.2 0.03 0.01 0.40 83.1
209 211 2 0.01 0.0 0.01 0.03 0.20 75.0
212.4 214 1.6 0.86 0.0 0.01 0.00 0.10 85.0
214 217 3 0.03 0.4 0.00 0.01 0.22 150.0
228.2 230.85 2.65 0.01 0.0 0.00 0.01 0.00 759.1
243 249 6 0.02 1.7 0.01 0.12 0.38 115.0
BGC170 582994 9885568 740 178 270 -70 151 152 1 0.00 0.0 0.01 0.01 0.12 40.0 Wedge
160 161 1 0.01 0.0 0.01 0.00 0.45 110.0
BGC171 583020 9886140 765 271.5 270 -60 240 248.4 8.4 0.34 0.3 0.00 0.03 0.07 119.3 Extension
251 259.4 8.4 0.04 2.6 0.01 0.09 0.50 88.3
Note: The widths above are not true widths. True widths remain to be determined.
Alphamin Resources Corp.
Boris Kamstra
Chief Executive Officer
+230 269 4166
Grand Baie, Mauritius
www.alphaminresources.com