ENP Newswire -
Release date- 20062014 -
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
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
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.
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.
Premier is also pleased to advise that it has appointed
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