What Premier African Minerals PLC (LON:PREM) owns
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), in which it owned a 10% stake, 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.
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.
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.
MN Holdings operates the producing Otjozundu manganese mine in Namibia.
Premier upped its stake in MNH to 12% in February 2020 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.
What's the latest?
The company is continuing to negotiate with the government of ZImbabwe in regard to RHA, although the process is being slowed by the coronavirus lockdown.
In the meantime, on 7 May 2020 Premier African raised new money via a funding agreement with YA II PN, Ltd ("YA") and Riverfort Global Opportunities PCC Limited.
The government of Zimbabwe has also provided some interim funding.
What does the chief executive say?
"I am pleased to note that the Ministry of Commerce and Industry in Zimbabwe has indicated that whilst they cannot conclude the negotiation in regard to RHA under the Covid-19 lock down, they have nevertheless provided RTGS $2,500,000 (equivalent to US$ 108,806 at the official bank exchange rate), in interim funds that are adequate to cover holding and security costs at RHA for an extended period," said chief executive George Roach.
"I am deeply appreciative of this gesture and will comply with the request that further action be stayed at this moment."
- Re-start of mining at the tungsten mine
- Exclusive prospecting order (EPO) issued at Zulu
- Drilling at Zulu gets underway for a definitive feasibility study
- Sale of stake in Circum
- Revenues from MNH