Premier African Minerals Ltd (LON:PREM) said it anticipated better times ahead following a frustrating 2020 which was hampered by Coronavirus, the inability to progress its Zulu lithium and tantalum project or RHA Tungsten (Pvt) Ltd and a disappointing performance from the Otjozondu manganese mine.
Talks with the Zimbabwe government in regard to RHA, and the application for an exclusive prospecting order (EPO) over an extended area surrounding Zulu continued throughout the year. The AIM-listed company was finally granted the EPO for Zulu in late March 2021.
“Premier has seen both a revival of our share price and our market capitalisation and our company is now set up for a most exciting 2021, in particular from midyear onward,” said chief executive George Roach.
Camp construction at Zulu is well advanced, utilities for a camp are largely installed and commissioned, first rigs are on site, the definitive feasibility study (DFS) engineering team has been appointed, and multipurpose drilling has started.
“Over the coming months we expect to see resource definition and expansion, attention to geotechnical and test work sample collection and generally significant advancement into the DFS process,” said Roach.
“Premier continues to field diverse approaches from prospective off take partners and investors, however the board remains of the opinion that delaying any definitive decision until we are able to unlock further value through progression into the DFS program, is likely to present our company with the best return.”
The company’s pretax losses narrowed in 2020 to US$1.33mln from US$1.44mln.
During this year, Premier said it hopes to definitively settle the status at RHA, which is on care and maintenance, and either reopen the mine or relocate its plant.
“Premier said it has independently validated the underground resource at RHA and is confident that with a positive cash flow forecast, support from our offtake partners and in the present climate of appreciating tungsten prices, RHA has a future.”