Premier African Minerals Limited (“Premier” or the “Company”), provides this update on operations at Premier’s Zulu Lithium and Tantalum Project (“Zulu”).
Zulu Update
Progress with the second stage and long-term solution to the production delays at Zulu remains on track with the delivery of the new ball mill still projected for December 2023 with the intention of supporting full production from January 2024.
Stark International Projects Limited reports that there is a steady improvement in both concentrate grade and plant performance and the optimisation of the current plant configuration remains ongoing following the installation of the interim solution of the RHA mill at Zulu, but it is proving impossible to construct the civil works required for the new mill at the same time as continuing with present operations.
Premier is now considering an early cessation of current plant operations with the longer-term goal of production at design capacity not being unnecessarily delayed. The result is likely to be that no shipments of concentrate will now be made in November and December 2023.
Premier is consulting with its Offtake and Prepayment Partner in this regard, who have several options under these circumstances that include a requirement for an interim payment of US$1.5 million in respect of each month when the product commitment is not met, as fully described in the announcement of 15 August 2023.
Current mining and pit development operations will continue as will exploration in the wider EPO region.
Construction of civil works is a major undertaking and timely completion is essential to ensure the Company meets its medium- and longer-term goal of production at full design capacity.
Shareholder Q & A
George Roach, upon his return from Zulu, will arrange a virtual Questions and Answers session with shareholders. Further details will follow on Premier webpage, however, please register your interest with the Company at wilna@regentresources.co.za.
