Premier African Minerals Ltd (AIM:PREM) says it is considering a halt to plant operations at its Zulu lithium deposit to iron out the issues that have dogged production so far.
Contractor Stark International has reported a steady improvement in both concentrate grade and plant performance with interim measures recently put in place.
Premier, however, added it is proving impossible to construct the civil works required for the new mill at the same time as continuing with present operations.
Delivery of a new ball mill is projected for December 2023 with full production from January 2024 the aim.
If the decision is taken to delay, the result is likely to be that no shipments of concentrate will now be made in November and December 2023, Premier African said.
Discussions are underway with the offtaker and shareholder Canmax, which has several options under these circumstances including an interim payment of US$1.5 million for each month that the product commitment is not met.