Premier African Minerals announced that drilling results from its Zulu lithium project in Zimbabwe have revealed promising grades in areas adjacent to the current mining activities. George Roach, the CEO, highlighted the significant potential for lithium extraction from rock, noting that nearly all the mineralization in these pegmatites is primarily spodumene.
Roach explained that laboratory tests at Zulu have consistently shown the ability to produce SC6 lithium concentrate at desirable grades, even with a spodumene content as low as 4% in the ore.
This suggests a potential economic threshold as low as 0.37% Li2O when spodumene is the main mineral. He clarified that a 1% Li2O grade, when entirely spodumene, equates to 12.5% spodumene composition in the ore.
He also updated on the progress of construction at Zulu, stating that the new mill installation is scheduled for the end of the month, with production commencement targeted for February.
Materials have started arriving at the site, with more on the way, and no issues are expected in transporting ore to the Run of Mine pad.
Roach acknowledged the high current costs of mining operations but anticipated that future operations with lower stripping ratios would compensate for these expenses.
The company’s preliminary internal budget estimates an average mine gate cost of around $800 per ton for SC6 in the first year. This forecast does not include revenue from the sale of technical-grade spodumene, lepidolite, other mica-rich concentrates, or potential future tantalum production.
