Premier African Minerals Ltd (AIM:PREM, OTC:PRMMF) said the drill assays from its Zulu lithium plant in Zimbabwe returned good grades in adjacent areas outside the mining developments currently underway.
George Roach, chief executive, said these areas represent very good potential for rock-based lithium as almost all the mineralisation in this pegmatite is almost exclusively spodumene.
“Test work in our laboratory at Zulu has consistently confirmed that Zulu can produce SC6 at acceptable grades from a contained spodumene content in the ore body as low as 4%, representing a potential economic cut-off grade as low as 0.37% Li2O when the contained mineral is spodumene.
“For reference purposes, a grade of 1% Li2O when the mineralisation is all spodumene, is the equivalent of 12.5% of the ore body being made up of the mineral spodumene,” he said.
Roach added that the revised schedule of construction work at Zulu is on track with the new mill to be positioned at the end of the month and production to begin in February.
The first materials are now at the site with further loads en route and no issues associated with ore delivery to Run of Mine pad are anticipated, said the statement.
“Whilst mining operations are a major cash cost at present, the future benefit when operations are underway at much reduced stripping ratios will more than offset this cost.
“Preliminary indications from the company's internal budget at this time model an average mine gate cost of the order of $800 per ton for SC6 for the first 12 months.
"This discounts any technical grade spodumene produced and sold and any sale of any lepidolite and other mica-rich concentrates or future tantalum production."