Premier African Minerals Ltd (AIM:PREM) reported further positive drilling results from its Zulu lithium and tantalum project in Zimbabwe, with Hole 75 intersecting multiple high-grade zones.
The AIM-traded company also said it expects to close a previously announced offtake and prepayment agreement with China’s Suzhou TA&A Ultra Clean Technology (NASDAQ:UCTT) Co. Ltd in the coming days.
Under the agreement, Suzhou TA&A will provide pre-funding of about US$34.6mln to enable the construction and commissioning of a large-scale pilot plant at the Zulu project to produce SC6 (spodumene concentrate) from the first quarter of 2023, Premier African announced last month.
The pilot plant is targeted to produce 50,000 tonnes of spodumene concentrate, a high-purity lithium ore, annually.
“Our formal agreement in regard to offtake is largely in final state, and it is generally a pleasure to be able to report good progress all round," said Premier African’s chief executive George Roach.
Hole 75 intersected 3.74 meters (m) at 1.29% lithium oxide, 62 parts per million (ppm) tantalum (V) oxide and 3,242 ppm rubidium; 2.38m at 0.92% lithium oxide, 36 parts per million (ppm) tantalum (V) oxide and 3,167 ppm rubidium; and 3.89m at 1.16% lithium oxide, 15 parts per million (ppm) tantalum (V) oxide and 2,704 ppm rubidium.
“Results continue to please on the upside,” said Roach. “These are just a few of more than 2,000 outstanding assays that we are chasing laboratories for,” he noted.
“Particularly pleasing are the multiple intersections that have passed through steeply dipping mineralised pegmatites. Pleasing also to note that this is precisely the type of ore body best suited to sensor-based sorting and the application of that technology is likely to improve overall mining efficiencies.”
He added that good progress was being made on the early mine build.
“Site earthworks and camp construction is progressing well. Detailed civils design is expected to complete by end July 2022.”