Premier African Minerals (LON:PREM) is in discussions with potential funders for its flagship RHA tungsten project in Zimbabwe, it said, as the company reported an upgrade to its recent preliminary economic assessment and mining study.
Investors welcomed Monday's statement, sending shares soaring.
As reported at the end of August, the PEA showed the economic potential to support a tungsten mining operation with an annual rate of ore production of 192,000 tonnes over a six year life of mine.
The net present value of the project, on an undiscounted and pre-tax basis, was put at US$118mln.
But following further work since the PEA and concept mining study, a new pit design has been targeted to increase the undiscounted before tax Net
Present Value (NPV) to US$118 million and the before tax Internal Rate of Return (IRR) to 378% (316% previously), the firm said today.
Premier's chief executive George Roach said he was delighted to announce the latest upgrade, which further highlighted the "attractiveness of the project".
"We are in active discussions with potential off-take partners and we look forward to updating the market on the development of RHA over the coming months."
The company aims to begin open pit development in late 2014, with underground mining development to commence thereafter to fulfil the project's projected six year life of mine.
In half year results reported today, the company highlighted that sinmce end June, it had also received approval for the sale of its Togo and Mali subsidiaries from the TSX Venture Exchange (`TSX-V') to take a 42% shareholding in AgriMinco Corp, formerly known as Ethiopian Potash Corp.
The loss before tax was £1.186mln (2012 six months: Loss of £493,109).
Shares rose over 42% to 1.50p