News Column

Premier African Minerals Limited - RHA Project Update

June 24, 2014



ENP Newswire - 24 June 2014

Release date- 20062014 - Premier African Minerals Limited, the AIM-traded, multi-commodity natural resource company with mineral projects located in Western and Southern Africa, is pleased to provide an update on the RHA project, and in particular progress with the mine study, discussions with off-take partners and potential debt finance.

RHA Mine Early Production Review

The Board is pleased to announce that it has commissioned a further review of potentially low capital cost, near term production alternatives for the RHA Tungsten and Zulu pegmatite. The Company recently announced a substantial increase in the indicated and inferred resource at RHA Tungsten Project ('RHA') in Zimbabwe, in which Premier is the operator and holds a 49 per cent interest. The original mine study suggested an initial open pit approach and then development of a decline for future underground mining.

The alternative approach under review contemplates an immediate commencement of mining operations through utilization of the existing underground development and shaft system, and construction of the plant at the historic site.

The plant and flow sheet is expected to be of similar design and capacity to that contemplated in the initial mine study. If the alternative mining approach is adopted, production could commence from as soon as the early part of next year at a reduced mining rate with expansion taking place progressively thereafter. The alternatives under review anticipate that Premier would finance this without the need to raise further equity.

Mineralogical and Metallurgical Study

Initial mineralogical and metallurgical studies on which the RHA mining study update is being based have been completed. The mineralogical study has indicated a high grade concentration and anticipated recoveries of the order of 88%.

The metallurgical study sample grade was assessed using a composite of all boreholes, including those parts of the ore-body that will not be mined: While the recovery of approximately 60% is acceptable, it underestimates the anticipated outcome and so additional metallurgical test work is now being undertaken, using new underground material samples, so as to enable optimisation of the tungsten crushing and milling processes. The complete studies will be available from our website; www.premierafricanminerals.com.

Mining Study Update

Premier expects that the updated mining study should be completed in August 2014 dependent on the completion of additional metallurgical test work. The mining study update will reassess the project potential in light of additional information that is now or will be available including:

Updated geology and mineral resources including resources in the measured, indicated and inferred categories (previously only inferred mineral resources were available).

An evaluation of the geotechnical environment at the property (previously not completed).

Results of two rounds of metallurgical test work (previously not available).

It is considered that updating the study based on this additional information will reduce the risk profile of the project.

Zulu Pegmatite

The establishment of a pilot plant is a necessary precursor to mine development of this substantial Tantalum and Lithium enriched pegmatite and Premier expects that such a plant could generate sufficient revenue to cover anticipated further exploration and development costs at Zulu.

Off-take and financing

While Premier has a term sheet for a marketing contract for Wolframite, any final off-take agreement will only be finalised when the additional metallurgical test work has been concluded. In addition, any debt finance will be dependent on the final mine study update.

Management appointments

Premier is also pleased to advise that it has appointed Wolfgang Hampel as Exploration Manager and expects to announce the appointment of a Project Director who will manage the investigation of the near term production opportunities. With extensive African experience, membership of the BDG since 1992 (Association of German Geoscientists), more than 50 international publications and presentations, Wolfgang enhances our levels of competence and professionalism in the management and development of our exploration projects.

George Roach, CEO commented that: 'Following completion of the Circum / AgriMinco transactions, the Company now has the funding to contemplate the low capex, near-term production alternatives for RHA. Whilst I am frustrated that the metallurgical studies need to be repeated, a satisfactory result will significantly strengthen our confidence in the project.'

Contact:

Pamela Hueston

Premier African Minerals Limited

Tel: +44 (0) 755 778 3855

Michael Cornish

Roland Cornish

Beaumont Cornish Limited

Tel: +44 (0) 207 628 3396

Jerry Keen

Edward Mansfield

Shore Capital Stockbrokers Limited

Tel: +44 (0) 207 408 4090

Tim Blythe

Halimah Hussain

Blytheweigh

Tel: +44 (0) 207 138 3204


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Source: ENP Newswire


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