Premier African Minerals Ltd (AIM:PREM, OTC:PRMMF) shares surged 17% to 0.027p after the company reported a key milestone in the restart of operations at its Zulu lithium and tantalum project in Zimbabwe.
The mining group said ore from the run-of-mine stockpile is now being fed through the newly installed flotation plant, marking the latest step in efforts to bring the project back into production.
Premier said initial observations have been encouraging, with the flotation plant operating as expected following commissioning.
However, the company cautioned that it remains at an early stage in the optimisation process and it is too soon to comment on recovery rates or overall plant performance.
Managing director Graham Hill said: "Initial observations are positive and the flotation plant is operating as expected."
He added that ongoing analysis and optimisation work is continuing and further updates would be provided in due course.
The flotation circuit is a critical part of the processing plant and is intended to concentrate lithium-bearing minerals from ore mined at Zulu.
Investors welcomed the update as a sign that the long-delayed restart of the project is progressing. The company has spent recent months installing and commissioning the revised processing plant following previous operational difficulties.
Hill described the commencement of ore processing through the flotation plant as "a very positive step in the re-start of Zulu" and praised the site's operational team for completing the installation.
The company said further operational updates will follow as optimisation work progresses and performance data becomes available.
