Premier African Minerals Limited (LON:PREM) has estimated it has at least three years of profitable production at its RHA tungsten mine in Zimbabwe.
A review of the material available at the site indicated that using X-ray sorting equipment there is sufficient tonnage immediately available both in the open pit and underground operations to support production of 39,000 tonnes per month over that timeframe.
Premier said it wants to have the x-ray equipment installed by November and will operate it on a toll (pay-as-you-use) basis.
At that rate of production,output should be 10,000 metric tonne units (mtu) of tungsten trioxide concentrate per month, worth approximately US$1.12mln in revenue at the current net price for the metal of US$112 per mtu.
A mtu is equal to ten kilograms of tungsten tri-oxide equivalent contained in a concentrate and is the standard weight measure of wolframite, the ore that is main source of tungsten.
RHA expects to spend $825,000 per month when the XRT kit is fully operational and at full capacity.
George Roach, Premier's chief executive, added that of the 39,000 tonnes per month, 23,000 tonnes per month would coome from the open pit and 16,000 tonnes from underground operations.
Using XRT technology would mean significantly higher feed grades to the plant with higher production at lower cost.
“The company is now pushing hard to increase production and bring the project into profit by the end of December this year."