Premier African Minerals Limited (LON:PREM) shares jumped in early trading Wednesday after it said it had hit multiple high-grade intersections in an update on its drilling programme at the RHA Tungsten mine in Zimbabwe, in which it holds a 49% stake.
The AIM-listed firm said all drill holes targeting underground depth and strike extensions at the site had intersected mineralised zones, with highlights including;
• The “potentially most significant intersection” in Hole RHADD37 of drill width 2.56 metres from 122.9m grading 7.11 kilograms per tonne (kg/t) of tungsten trioxide indicating potential anticipated convergence of ore body lode structures
• Hole RHADD40 intersections including 26.73kg/t WO3 over 71cm from 145.81m, 6.01kg/t WO3 over 80cm from 165.94m and 26.03kg/t WO3 over 55cm from 171.98m
• Hole RHADD35 intersections of 1.99kg/t WO3 over 265cm from 81.46m, including 9.54kg/t WO3 over 72cm from 81.46m
• Hole RHADD37 intersections of 7.11kg/t WO3 over 2.56m from 122.90m including 30.33 kg/t WO3 over 40cm from 123.18m
• Hole RHADD38 intersections of 115.10kg/t WO3 over 12cm from 46.63m
RHA, along with the Zulu lithium deposit, will eventually form part of a new vehicle that Premier is planning to spin off and list in London alongside assets of mining contractor KME Group, which will be acquired in shares for US$4mln.
The current drilling programme at RHA began in September with the aim of expanding the underground declared resource base as well as determining the future mining of the open pit and is expected to complete by the end of November.
George Roach, chief executive of Premier African, said the drilling had already confirmed: “Forecast depth extensions below the current 870 level and the convergence and widening of the ore body would seem to support an increase in tonnage and development of a decline shaft system”.
He added that while the RHA ore body was “spotty” with big variances over short distances, “the sheer number of high-grade intersections is most encouraging”.
Shares were up 3.8% at 0.14p.