Premier African Minerals Ltd (AIM:PREM) Increase and Upgrade in Resources at RHA

Premier African Minerals Limited (AIM: PREM), the London-quoted mining and exploration company, is pleased to report an upgrade and increase in the underground Mineral Resource Estimate at the RHA Tungsten (RHA) Mine in Zimbabwe. Premier owns 49% of RHA and is the operator.

Highlights

· 32% increase in the underground Measured Resource category to 0.029 million tonnes and a 52% increase in grade to 5.45kg WO3 per tonne.

· 33% increase in the underground Indicated Resource category to 0.076 million tonnes and a 95% increase in grade to 6.31kg WO3 per tonne

· 11% increase in overall underground grade to 4.72kg WO3 per tonne and 16% increase in total underground Mineral Resources contained metal to 6,257,493 kg WO3

George Roach, Premier’s CEO, commented:

“This increase in tonnes and grade of the underground Mineral Resources at RHA provides both higher confidence in these Mineral Resources at RHA and supports our long-term confidence in the mine. At the same time, the recent substantial increase in the price of APT to $310-$325 per mtu has reduced the breakeven throughput tonnage required from underground ore at the predicted Resource grade to approximately 4,500 tonnes per month and increases potential profitability as and when plant optimisation completes and we are able to process at the higher throughput tonnages projected for later in Q4 this year. Most importantly the reduced breakeven point can also be achieved without any feed from open pit operations and supports our determined efforts over the past year to bring RHA into continuous production. We have commenced an independent review of the open pit Mineral Resources and we will report further when this review is completed. With ongoing curtailment in supply of wolframite from China, we believe that RHA can become one of the larger producers.”

Summary of Resources Increase and Upgrade

The underground Mineral Resource Estimate (“MRE”) update set out in Table 1 below is prepared in accordance with the SAMREC code and in compliance with Appendix 3 of the AIM Note for Mining and Oil & Gas Companies – June 2009). No cut-off grade has been applied to the Mineral Resources as this is not required when XRT based sorting is applied.

Table 1: Summary of the Underground Mineral Resources (September 2017)

Category

Gross

Net attributable

Operator

Tonnes (millions)

WO3 Grade (kg/t)

Contained metal (kg)

Tonnes (millions)

WO3

Grade (kg/t)

Contained metal (kg)

Underground

Mineral Resources

Measured

0.029

5.45

157,679

0.029

5.45

157,679

Premier

Indicated

0.076

6.31

479,936

0.076

6.31

479,936

Inferred

1.220

4.61

5,619,877

1.220

4.61

5,619,877

Total

1.325

4.72

6,257,493

1.325

4.72

6,257,493

Notes:

1. Premier is the operator of the RHA Tungsten Project (“RHA”).

2. Premier holds a 49 per cent. interest in RHA. RHA is indebted to Premier in excess of US$20m and until such time as this is settled, all concentrate produced will be attributable to Premier.

3. Mineral Resources which are not Mineral Reserves have no demonstrated economic viability.

4. The effective date of the Mineral Resource is 12 September 2017.

5. Mineral Resources for RHA have been classified according to SAMREC.

6. The Mineral Resource Estimate is based on information compiled by Mr Gerard Evans.

7. The contained WO3 metal values are rounded, actual grades and contained metal kg are accurately stated and any differences in the total are due to rounding.

The Mineral Resources, set out above, from the underground operations represent an upgrade from the Mineral Resource Estimate as previously announced on 30 November 2016, and are contained within 100 meters of existing underground development that includes the equipped vertical 120-meter shaft and extensive drive and historic stoping areas providing direct access with little further development required to mine. The mineralisation is open along strike and at depth. The Mineral Resource upgrade is a result of continuing channel sampling of Lode 4 as well as a re-evaluation of Lode 2.

Open Pit Mineral Resource Review

The Company has engaged an independent advisor with extensive experience in preparing Mineral Resource and Reserve Statements to carry out an assessment of RHA’s open pit Mineral Resource Estimate (as announced on 30 November 2016), as well as advising on optimisation of the parameters used in the Mineral Resource Estimation.

Competent Person Statement

The information in this announcement that relates to the Mineral Resource Estimate is based on information compiled by Gerard Evans, Resource Geologist for Premier African Minerals. Mr Evans has reviewed and confirmed the statements related to the Underground Mineral Resources set out herein. Gerard Evans has 27 years’ experience in mining industry specialising in resource geology and holds a B.Sc Hons degree in geology from the University of the Witwatersrand. Mr Evans is a registered member of SACNASP (400015/08), GSSA and GASA.

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.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

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