Premier African Minerals Limited's (LON:PREM) chief executive has described as spectacular results from the latest drill hole at its Zulu lithium deposit in Zimbabwe.
Hole ZDD-45 220m south-east of the Main Zone, intersected 68m of mineralised pegmatite from a depth of 101m.
Assay results from the first 38.84m analysed contained an average grade of 1.55% lithium oxide in multiple intersections, with some exceptionally high grades.
“Not often is a grade of 4.24% Li2O seen in drill core. Together with other known results previously reported, this supports our declared exploration target of 60 to 80 million tonne in the step-out zone,” said George Roach chief executive.
“Zulu is now justifying our belief that this is a tier 1 asset.”
He said the hole was the best of 24 drilled recently to expand the resource at Zulu, adding that Premier may now seek to develop the deposit itself.
“The changing environment in Zimbabwe and particularly new proposals related to lithium mining might encourage it to develop its own lithium carbonate production and to retain sole ownership of the entire project.”
Elsewhere, Roach said Premier also does not expect to have provide any more significant finance for the RHA tungsten mine, also in Zimbabwe other than a short-term bridge loan while it waits for shipment payments.
Premier has completed a 8,272 tonnes bulk sample of material from an open pit operation at RHA, most of which has been processed.
Underground operations are expected to reach the projected breakeven level of 6,000 tonnes per year this month,
Premier added it also wants the Zimbabwe government to pay it share of the funding of RHA.
“To date, RHA has been sole funded by Premier and has received no contribution from the National Indigenisation and Economic Empowerment Board ("NIEEB"), which holds a 51% interest in RHA. Premier is owed in excess of US$20 million before any adjustment for the true cost of that debt,” the company said in a statement.