Compagnie Minière de Touissit (CMT), the second largest mining company in Morocco, has the potential to significantly expand its mine life through the future conversion of 6mt of inferred resources and 5mt of measured and indicated resources, said a report.

Headquartered in Casablanca, CMT is currently the top producer of lead concentrate and second biggest producer of silver in Morocco. It is listed on the Casablanca Stock Exchange.

With a significant production of lead, silver and zinc, CMT today has more than 16 years of mine life (based on proven and probable reserves only) and has the potential to significantly expand its mine life through the future conversion of 6mt of inferred resources and 5mt of measured and indicated resources, said the company citing the report by Mélabar Geoconsulting, a respected technical consultant in France.

The report was prepared by the company over the fourth quarter of 2013 based on the results of mining operations and new diamond drill program carried out in the last three years at the Tighza mine.

The drilling program comprises 21,000 m across 71 diamond drill holes, in addition to the 16,290 m of mining exploration work, said the top Moroccan miner citing the results of an independent reserves and resources report which demonstrates the substantial potential of the Tighza ore bodies.

The report significantly extends Tighza’s mine life, expands its existing reserves and resources base, and brings them into compliance with recognized international standards, it added.

“This is a tremendously positive report for Compagnie Minière de Touissit. A significant reserves and resources expansion, coupled with plans for a notable increase in throughput, provides us with an exceptional opportunity to leverage our position as one of Morocco’s leading mining companies," remarked Jean-François Fourt, the chairman of CMT.

“Our Tighza mine is a flagship asset and represents a uniquely attractive growth platform in Morocco,” he added.

Fourt said Morocco was an excellent mining jurisdiction, with highly prospective concessions, a stable and mining-friendly political and regulatory system, and a growing economy.

"I firmly believe CMT has tremendous potential to continue to grow and thrive from our interests in Morocco," he added.

The report demonstrates the opportunity of the construction of a new shaft (1,100m) allowing to grow production of the Tighza mine by 25 per cent in the medium term.

CMT also operates beyond Morocco. It is the largest shareholder (23 per cent) of Auplata, a French Guiana-based gold producer which operates more than 700 sq km of permits in this promising region.

Auplata is also the biggest single shareholder (25 per cent) in Vancouver-listed exploration company Columbus Gold.

Osead SA, CMT’s largest shareholder, has engaged Credit Suisse Securities (Europe) as its exclusive financial adviser to assist it in evaluating a range of strategic alternatives for CMT. -TradeArabia News Service