AIM-listed Andrada Mining, a critical minerals producer with mining and exploration assets in Namibia, has secured additional supply from a tin ore body at Goantagab in close proximity to the Uis mine and processing facility.
The ore body located in Goantagab in the Kunene Region of Namibia was extensively drilled by Gold Fields Namibia in the 1980’s confirming, at the time, a non-JORC compliant resource with tin grades of greater than 1%. The relatively high historic tin grades position this deposit as a potential source of high-margin feedstock that is expected to materially enhance throughput at Uis.
To unlock this value, Andrada has finalised an Ore Supply and Profit Share Agreement between its wholly owned subsidiary Uis Tin Mining Company (UTMC) and Goantagab Mining, which acts as agent for the relevant mining claim owners. Simultaneously, UTMC has entered into a Management Agreement with Birca Mining Namibia, the parent company of Goantagab Mining as an independent contractor to operate the recently announced additional jig plant at Uis. The accelerated commissioning of the Plant combined with high grade feedstock from Goantagab will enable rapid production ramp-up.
Highlights
- Gold Fields Namibia historically delineated an initial non-JORC compliant resource at Goantagab of over two million tonnes with an average grade of 0.95% tin.
- higher tin grade zones of up to 1.75% were identified.
- approximately 20 000 metres drilled to date.
- mineralised zones with grab samples of over 17% tin were also identified but not drilled indicating further upside potential.
- pre-feasibility study completed.
- UTMC has entered into an Ore Supply and Profit-Sharing Agreement with Goantagab Mining for the supply of up to 240 000 tonnes per year of high-grade ore averaging 1.5% tin.
- Historical testwork by Gold Fields Namibia on the Goantagab ore had yielded positive results to produce a saleable tin concentrate.
- Andrada has the option to acquire 100% of Goantagab Mining shares for USD15 million subject to certain conditions.
- UTMC has also entered a Management Agreement with Birca to commission and operate the Plant as an independent contractor.
- Once commissioned, the 100 tonne per hour jig plant will ensure that processing the high-grade ore from Goantagab complements production from the existing operations at Uis.
Anthony Viljoen, CEO, commented: “At Andrada, we have always believed in the vast potential of mineral-rich and investment friendly Namibia as a host to some of the world’s critical mineral resources essential to modern technologies. Namibia is abundantly rich in natural resources beyond its minerals, boasting globally significant ecosystems and wildlife that are intrinsic to its national identity and livelihood.
It is encouraging to see tin increasingly acknowledged as a critical mineral by global economies such as the USA, Canada and the UK. This shift reflects tin’s transformation from being a traditional alloying mineral to being a key enabler in the electrical and energy transition value chains, particularly in soldering, semiconductors and renewable infrastructure. Therefore, this collaboration with Birca on the Goantagab deposit reaffirms our strategy in creating a mining district for critical minerals in the Erongo. Based on historical resource data and our independent assessment, the deposit has the potential to be comparative to other high-grade occurrences of tin globally. Once production at the Plant is fully commissioned, it will significantly increase the tin concentrate throughput thereby elevating the Company’s position in the global market.
At Uis, construction of the new jig plant is well underway, and we remain on track to commence production in the second half of 2025. This ore acquisition agreement reflects the continued evolution of Andrada’s asset portfolio, and our ability to forge timely and opportunistic strategic partnerships that accelerate development and enable large-scale execution. We believe we are uniquely qualified to unlock the immense mineral potential that Namibia holds and look forward to leveraging our established presence in the Erongo region as we continue our mission to become a leading producer of critical minerals.
We recognise the inherent tension at the intersection of mining, tourism and conservation. We continue to engage proactively and transparently with all our relevant stakeholders. As part of our broader vision, we are enhancing our sustainability strategy to reflect our firm belief that, mining, responsible stewardship, collaboration, biodiversity conservation, sustainable tourism, and socio-economic development such as job creation can all coexist harmoniously.”
