REG - Premier African Min. - Zulu Project Update

Premier African MineralsAnnouncement

18/06/2024 10:00

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RNS Number : 8766S  Premier African Minerals Limited  18 June 2024

18 June 2024

 

Premier African Minerals Limited

 

 Zulu Project Update

 

Premier African Minerals Limited ("Premier" or the "Company") is pleased to
provide this further update in regard to the Zulu Lithium and Tantalum Project
("Zulu").

 

 Highlights

 ·             As previously announced conditioning tank delivery and commissioning remains
               on track for completion during the week commencing 10 July 2024.

 ·             Sale of concentrates on hand is now expected to proceed on an ex-mine gate
               basis.

 

George Roach, CEO commented, "Premier sincerely hope the conditioning tank
will be the last plant modification and on that note, the Board remains
confident regarding the prospects for Zulu and we note that at this time the
development of Zulu, a complete mine, has cost the Company the better part of
US$75 million, and neither this nor the deemed valuation of Zulu agreed with
our take-off partner is reflected in our current market capitalisation."

 

Shipment

 

The lower grade concentrates will now be sold (conditional on independent
laboratory analysis underway in South Africa) on an ex-mine gate basis, free
on truck from Zulu and payment will be made immediately once the conditions
have been met. Zulu will not be expected to deliver production to port, nor
will Zulu be required to outlay transport and shipping costs. This will
provide a small cash flow benefit.

 

The Zulu Plant

 

It was only possible to optimise the floatation circuits when Zulu was able to
feed the plant at design capacity. This was achieved only after our Zulu team
was able to resolve the design deficiencies associated with classification of
milled material. It is remarkable and a tribute to our Zulu team and Enprotec
as OEM for the float plant, that the Company was able to identify this
conditioning tank as essential and to have this ordered and expected to be
installed and commissioned by 10 July 2024. Whilst the Company will review the
overall plant in some detail in the Annual Financial Statements due for
release on 28 June 2024, it would be remiss not to correct certain
misunderstandings by some shareholders in respect of Zulu's plant, pit
development and water.

 

Milling Circuit and Hydrosizers

 

With the installation of the new ball mill and after the Zulu team took over
and resolved the deficiencies in the comminution circuit, it was clear that
only one hydrosizer is actually needed. Production from the mill and single
hydrosizer exceeds the 37.5 ton per hour capacity of the float plant. Running
the mill and single hydrosizer continuously would actually double floatation
feed and this is likely to enable significant capital cost savings if and when
plant capacity is required to increase.

 

Ore body, Mining and Ongoing Pit Development

 

Test work for the correct sorter solution has now commenced. In the interim,
careful management of the pit and ongoing inspection of ROM ore will suffice.
Zulu accepts a small percentage of ore from other claims it has registered
within its EPO area from a local miner, and this is complementary to in-pit
mining at Zulu as well as offering employment to local communities. Zulu is
not dependent on this supply.

 

Pit development is ongoing and as reported previously, in situ grades in the
pit exceed the grades declared in Zulu's independent resource estimate in
those areas Zulu has taken ore from.

 

Water Supply

 

The ongoing drought in Zimbabwe has been public knowledge for some time, and
Zulu has taken steps to carefully assess water usage in the plant. The water
balance as per the original plant supplier was significantly understated and,
as the Company had also already anticipated that in the first year of
production Zulu's storage dam might not reach capacity during the lest wet
season, Zulu took the following steps to mitigate any potential water issues:

 

 ·             The Company had arranged access in December 2022 from other dams in close
               proximity to Zulu.

 ·             The Company increased the return water recovery from Zulu's tailings dam.

 ·             The Company reconfigured in plant process water reticulation including the
               installation of the thickener.

 ·             The Company constructed an additional large capacity reservoir at the plant.

A copy of this announcement is available at the Company's
website, www.premierafricanminerals.com
(http://www.premierafricanminerals.com/) .

Enquiries:

 

 George Roach                        Premier African Minerals Limited    Tel: +27 (0) 100 201 281
 Michael Cornish / Roland Cornish    Beaumont Cornish Limited            Tel: +44 (0) 20 7628 3396

                                     (Nominated Adviser)
 Douglas Crippen                     CMC Markets UK Plc                  Tel: +44 (0) 20 3003 8632
 Toby Gibbs/Rachel Goldstein         Shore Capital Stockbrokers Limited  Tel: +44 (0) 20 7408 4090

 

Nominated Adviser Statement

Beaumont Cornish Limited ("Beaumont Cornish"), which is authorised and
regulated in the United Kingdom by the Financial Conduct Authority, is
acting as nominated adviser to the Company in connection with this
announcement and will not regard any other person as its client and will not
be responsible to anyone else for providing the protections afforded to the
clients of Beaumont Cornish or for providing advice in relation to such
proposals. Beaumont Cornish has not authorised the contents of, or any part
of, this document and no liability whatsoever is accepted by Beaumont Cornish
for the accuracy of any information, or opinions contained in this document or
for the omission of any information. Beaumont Cornish as nominated adviser to
the Company owes certain responsibilities to the London Stock Exchange which
are not owed to the Company, the Directors, Shareholders, or any other person.

Forward Looking Statements

Certain statements in this announcement are or may be deemed to be forward
looking statements. Forward looking statements are identified by their use of
terms and phrases such as ''believe'' ''could'' "should" ''envisage''
''estimate'' ''intend'' ''may'' ''plan'' ''will'' or the negative of those
variations or comparable expressions including references to assumptions.
These forward-looking statements are not based on historical facts but rather
on the Directors' current expectations and assumptions regarding the Company's
future growth results of operations performance future capital and other
expenditures (including the amount. Nature and sources of funding thereof)
competitive advantages business prospects and opportunities. Such forward
looking statements reflect the Directors' current beliefs and assumptions and
are based on information currently available to the Directors. A number of
factors could cause actual results to differ materially from the results
discussed in the forward-looking statements including risks associated with
vulnerability to general economic and business conditions competition
environmental and other regulatory changes actions by governmental authorities
the availability of capital markets reliance on key personnel uninsured and
underinsured losses and other factors many of which are beyond the control of
the Company. Although any forward-looking statements contained in this
announcement are based upon what the Directors believe to be reasonable
assumptions. The Company cannot assure investors that actual results will be
consistent with such forward looking statements.

 Glossary
 "Li(2)O"  Lithium Oxide (Lithia) - an inorganic lithium compound used to assess lithium
           minerals.
 "m"       Meter.
 "ROM"     Run-of-mine.

 

Notes to Editors:

Premier African Minerals Limited (AIM: PREM) is a multi-commodity mining and
natural resource development company focused on Southern Africa with its RHA
Tungsten and Zulu Lithium projects in Zimbabwe.

 

The Company has a diverse portfolio of projects, which include tungsten, rare
earth elements, lithium and tantalum in Zimbabwe and lithium and gold
in Mozambique, encompassing brownfield projects with near-term production
potential to grass-roots exploration. The Company has accepted a share offer
by Vortex Limited ("Vortex") for the exchange of Premier's entire 4.8%
interest in Circum Minerals Limited ("Circum"), the owners of the Danakil
Potash Project in Ethiopia, for a 13.1% interest in the enlarged share
capital of Vortex. Vortex has an interest of 36.7% in Circum.

 

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