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Premier African Minerals continues to build value

Snapshot

  • Owns 49% of RHA tungsten mine in Zimbabwe
  • Agreement reached for funding for production re-start
  • Has 19% stake in Namibian manganese mine owner 
Wolframite

Quick facts: Premier African Minerals Ltd

Price: 0.0722 GBX

AIM:PREM
Market: AIM
Market Cap: £8.98 m
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What Premier African Minerals owns

RHA

Tungsten deposit RHA is situated in an area of historic production, approximately 270km northwest of Bulawayo.

Premier African has announced a resource of 22.1mln tonnes at 2.45kg per tonne in both the underground and open-pit operations.

To date, Premier African Minerals has invested around US$18mln in the acquisition and development of the mine.

In January, RHA was connected to the national grid with sufficient power to start processing tailings at the site, an option it said that is now under consideration.

Premier also that month signed a cooperation agreement with MN Holding (MNH) for the supply of mining and exploration machinery and for professional assistance with the optimization of the Premier's various mining and exploration operations.

Premier African chief executive George Roach said this was "another step towards the revival of RHA" and apart from the reprocessing of tailings, the association with MNH would "dramatically reduce" the cost of operating a mining fleet and he hoped would also encourage a re-evaluation of the possible restarting of open-pit operations.

MNH

MN Holdings operates the producing Otjozundu manganese mine in Namibia.

Premier has upped its stake in MNH to 19% from the 10% it bought in December. 

Neil Herbert, MNH's chairman, has joined the Premier board. He is also currently chairman of IronRidge Resources, Helium One and Siderian Resource Capital.

The Otjozondu mine has increased exporting levels to up to 10,000 tonnes lump ore per month at better than 35%, up from 5,000 per month late last year.

Zulu lithium project

Situated 80km from Bulawayo in Zimbabwe, Premier believes the project is potentially the largest undeveloped lithium-bearing pegmatite in Zimbabwe.

A scoping study in 2017 indicated a value of US$127mln for a 15-year open cast operation mining a concentrate of spodumene and petalite.

Lithium elsewhere

In July, Premier African Minerals Ltd (LON:PREM) struck a deal to acquire hard-rock lithium assets in Zimbabwe and Mozambique.

The deal with Lithium Consolidated Ltd, which is switching focus to Australian assets, saw  Premier pay A$150,000 gross consideration in shares.

Circum

Premier African owns just over 5mln shares in the privately-owned natural resources group, which is developing its wholly-owned Danakil Potash project in Northern Ethiopia.

The Danakil Project has the potential to be a world-class potash project says Premier.

What does the chief executive say?

"These properties in Zimbabwe are completely complementary to our existing operations and may have potential for small scale early production, something very important to our company, as much as adding to our lithium inventory,”

Video

Inflexion points

  • Re-start of mining at the tungsten mine 
  • Exclusive prospecting order (EPO) issued at Zulu
  • Sale of stake in Circum
  • Revenues from MNH

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Premier African Minerals CEO says it's time to add serious value to its...

Premier African Minerals Limited's (LON:PREM) George Roach updates Proactive's Andrew Scott on developments at the RHA tungsten mine in Zimbabwe as well as the recent reported increase in production at the Otjozondu manganese mine in Namibia. On Zulu, he says they continue to be encouraged that...

3 weeks, 4 days ago

3 min read