TIDMPREM
RNS Number : 8264Q
Premier African Minerals Limited
15 September 2017
Premier African Minerals Limited / Ticker: PREM / Index: AIM /
Sector: Mining
For immediate release
15 September 2017
Premier African Minerals Limited
("Premier" or the "Company")
Increase and Upgrade in Underground Resources at RHA
Impact of Increase in Tungsten Concentrate Price
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 WO3 Contained Tonnes WO3 Contained
(millions) Grade metal (millions) Grade metal
(kg/t) (kg) (kg/t) (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
identi ed 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 re ect 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.
Enquiries:
Premier African Tel: +44 (0)7734
Fuad Sillem Minerals Limited 922074
------------------------ --------------------------- -----------------
Michael Cornish Beaumont Cornish Tel: +44 (0)
/ Roland Cornish Limited 20 7628 3396
(Nominated Adviser)
------------------------ --------------------------- -----------------
Jerry Keen/Edward Shore Capital Stockbrokers Tel: +44 (0)
Mansfield Limited 20 7408 4090
------------------------ --------------------------- -----------------
Beaufort Securities Tel: +44 (0)
Jon Belliss Limited 20 7382 8300
------------------------ --------------------------- -----------------
Charles Goodwin/Harriet Yellow Jersey PR Tel: +44 (0)
Jackson Limited 07544 275 882
------------------------ --------------------------- -----------------
Notes to Editors:
Premier African Minerals Limited (AIM: PREM) is a
multi-commodity mining and natural resource development company
focused in Southern and Western Africa with production started at
its flagship RHA project in Zimbabwe.
The Company has a diverse portfolio of projects, which include
tungsten, rare earth elements, gold, lithium and tantalum in
Zimbabwe and Benin, encompassing brownfield projects with near-term
production potential to grass-roots exploration. The Company has
acquired a 52 per cent controlling stake in Mozambique-based TCT
Industrias Florestais Limitada, which owns a limestone deposit and
forestry business located on rail in the Sofala Province of
Mozambique. In addition, the Company holds 5,010,333 million shares
in Circum, the owner of the Danakil Potash Project in Ethiopia,
which has the potential to be a world class asset. At present those
shares are valued at US$10.2 million based on the latest price at
which Circum has accepted subscriptions. Premier also has an
interest in Casa Mining Limited, a privately-owned exploration
company that has a 71.25 per cent interest in the 1.5 million ounce
inferred resource Akyanga gold deposit in the DRC.
Glossary of Technical Terms
"APT" Abbreviation for Ammonia Paratungstate
------------------- ------------------------------------------------
(Fe,Mn) WO(3) chemical composition of wolframite
------------------- ------------------------------------------------
"Indicated that part of a Mineral Resource
Resource" for which tonnage, densities, shape,
physical characteristics, grade
and mineral content can be estimated
with a reasonable level of confidence.
It is based on exploration, sampling
and testing information gathered
through appropriate techniques from
locations such as outcrops, trenches,
pits, workings and drill holes.
The locations are too widely or
inappropriately spaced to confirm
geological and/or grade continuity
but are spaced closely enough for
continuity to be assumed
------------------- ------------------------------------------------
"Inferred that part of a Mineral Resource
Resource" for which tonnage, grade and mineral
content can be estimated with a
low level of confidence. It is inferred
from geological evidence and sampling
and assumed but not verified geological
and/or grade continuity. It is based
on information gathered through
appropriate techniques from locations
such as outcrops, trenches, pits,
workings and drill holes that may
be limited or of uncertain quality
and reliability
------------------- ------------------------------------------------
"kg/t" abbreviation for kilogramme per
tonne
------------------- ------------------------------------------------
"Measured is that part of a mineral resource
Mineral Resource" for which quantity, grade or quality,
densities, shape, and physical characteristics
are so well established that they
can be estimated with confidence
sufficient to allow the appropriate
application of technical and economic
parameters, to support production
planning and evaluation of the economic
viability of the deposit. The estimate
is based on detailed and reliable
exploration, sampling and testing
information gathered through appropriate
techniques from locations such as
outcrops, trenches, pits, workings
and drill holes that are spaced
closely enough to confirm both geological
and grade continuity
------------------- ------------------------------------------------
"Mineral Resource" concentration or occurrence of diamonds,
natural solid inorganic material
or natural fossilized organic material
including base and precious metals,
coal, and industrial minerals in
or on the Earth's crust in such
form and quantity and of such a
grade or quality that it has reasonable
prospects for economic extraction.
The location, quantity, grade, geological
characteristics and continuity of
a mineral resource are known, estimated
or interpreted from specific geological
evidence and knowledge
------------------- ------------------------------------------------
"Mineralisation" presence of a target mineral in
a mass of host rock
------------------- ------------------------------------------------
"MTU" Abbreviation for metric tonne unit
------------------- ------------------------------------------------
"SAMREC" South African Code for Reporting
of Mineral Resources and Mineral
Reserves
------------------- ------------------------------------------------
"Tungsten" metallic element known also as wolfram
with the chemical symbol W and atomic
number 74
------------------- ------------------------------------------------
"wolframite" mineral name for iron-manganese
tungstate; (Fe,Mn)WO(4,) an ore
of tungsten. The ratio of iron to
manganese varies; iron-rich wolframite
is known as ferberite FeWO(4) ,
manganese-rich wolframite is known
as hübnerite MnWO(4)
------------------- ------------------------------------------------
"WO3" tungsten oxide
------------------- ------------------------------------------------
"XRT technology" X-ray sorting technique where specific
mineral (e.g. wolframite) bearing
rock can be separated from specific
mineral-poor rock and other impurities.
This upgrades in metal terms the
material feed to the plant energy
and lowers the tonnage of rock requiring
processing which results in substantially
improved the economics for mineral
processing operations.
------------------- ------------------------------------------------
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
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