REG - Premier African Min. - Zulu Lithium Plant Update

Premier African MineralsAnnouncement

08/05/2024 07:00

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RNS Number : 5091N  Premier African Minerals Limited  08 May 2024

Premier African Minerals Limited / Ticker: PREM / Index: AIM / Sector: Mining

For immediate release

 

8 May 2024

Premier African Minerals Limited

 

 Zulu Lithium Plant Update

 

Premier African Minerals Limited ("Premier" or the "Company") is pleased to
provide an update on progress at operations at Zulu Lithium and Tantalum
("Zulu").

 

As previously announced in April, all efforts have been focussed on the Zulu
floatation circuit which is now running in continuous state and is producing
saleable spodumene concentrate. The process to complete rectification and
optimisation of the floatation circuit remains ongoing and Premier expects
continuous and significant improvement in both floatation grade and tonnage to
follow.

 

George Roach, CEO, commented, "Thanks to the support the Company receives from
ENPROTEC, the supplier of the float plant components and innovation and
dedication from our team at Zulu, we are now able to run the floatation
circuit continuously and produce saleable spodumene concentrate.

 

There is much to be encouraged by, notably, the use of an activator in the
spodumene floatation plant that has seen recoveries in internal laboratory
work approaching 90% and the indications that the ore body in situ grade is
higher than was estimated in our Resource model. The overall plant is
currently running at a feed rate to spodumene floatation that is approximately
50% of original floatation design capacity and will need a further
conditioning tank and minor pump upgrades to operate at the full design
capacity. This is over and above the recently completed flow changes. The
required pumps are already at site and the additional civils for the
conditioning tank should complete in May 2024.

 

Target production for the coming week is expected to start at 50 tonnes
spodumene concentrate per day with increasing production. Target full
projected capacity remains at 4,000 tonne per month. Grade is consistently
improving with continuous running and latest internal chemical analysis of
spodumene concentrate produced by the floatation circuit indicates grades have
now improved to between 4.5% and 6.3% Li2O."

 

The Zulu Plant

For the reasons previously reported, Premier replaced the original plant
contractor in March 2024. Whilst the floatation circuit is now running in a
constant and stable state, it will take time to fully remedy the original
design deficiencies in the overall plant and move from what in many instances
are interim fixes to the final operating plant. Some of these issues are set
out below:

Ore Sorters

Neither the XRT or the Ultraviolet sorters are adequately performing the
functions for which they were sold and delivered to the Company. It is only
the diligent and very careful efforts of a team from the Zulu Geology
Department that both carefully oversees mining and ROM pad inspections to
avoid waste reporting to the plant and thus allows the plant to operate
contaminant free. This interim solution is working well and is adequate for
now, but does not represent a long-term solution. The equipment supplier has
been called upon to deal with this. Premier will seek to enforce its rights
and is investigating alternatives.

Milling and sizing

The original mill and screen system was inadequate and unable to provide ore
adequately milled and screened. This set back Zulu by a year. The new ball
mill and sizing equipment has resulted in an interim stable operation but only
after a complete redesign of the mill discharge and hydrosizer circuit to
operate at a consistent optimised feed rate. Additional upgrades will be
installed in this circuit in the near future to bring this to industry
standard.

Magnetic separation and Tantalum recovery

The plant was supplied with a magnetic separator and a circuit intended to
remove both a paramagnetic and a magnetic fraction for bagging. The magnetic
separator supplied is low intensity (LIMS) and cannot remove a paramagnetic
fraction that would include tantalum. The magnetic separator circuit is
further unable to efficiently remove iron generated from the milling process
to an acceptable degree and will need to be upgraded in the near future.

Floatation Circuit

The components of the floatation circuit were originally specified by the
original plant contractor on the basis that they would be integrated,
installed and commissioned by them. That ENPROTEC has committed to rectify
design constraints and commission this part of the plant is a major factor in
the successful operational status now achieved.

Ore body and plant grades

With development of the open pit, the Company has now been able to validate
the actual pegmatite that is being mined. In-pit evaluation is undertaken
through the sampling of the pegmatite from blast hole drilling and channel
samples cut across the bench. This allows for better reconciliation to the 5m
x 5m x 5m Assay Block Model grades. On the bench level currently being
developed and mined, the Indicated Resource grade from the assay block model
was 1.01% Li2O while the average grade of the ore hauled to the ROM pad is
currently 1.13% Li2O, an approximate 10% increase.

At the same time, with material blended from selective mining in the EPO area,
Li2O grades recorded in the ore feed to the floatation circuit are in the
range of 1,1% Li2O to 1,8% Li2O, and the dry solids being fed to the spodumene
float plant contain between 12% and 25% spodumene.

Spodumene Concentrate

The term SC6 is used as a price determination point, being the price paid for
spodumene concentrate in which the Li2O grade is 6%. Approximately 74% of the
concentrate would then be made up of spodumene. Spodumene concentrate in any
grade more than 4% Li2O is saleable with an adjustment to the price paid
relative to the actual amount of spodumene contained in that bag. It should be
noted that prices are quoted for spodumene concentrates at lower grades and
these prices are in the public domain.

 

It is worth noting that the market for lepidolite is improving and Premier
believes that it is likely that our Mica/lepidolite will sell in the near
future.

 

Financial model

The Company will engage an independent consultancy to assess overall cost
implications related to the present mining operation. Previously, the Company
has indicated a mine gate production cost at $800 per ton. This may benefit
from reduced mining costs linked to ore sourced from within the EPO.

 

About ENPROTEC

 

ENPROTEC is a Multi-disciplinary Engineering Applications Group that Offers
End-to-end Solutions to the Mining & Mineral Processing Industry. ENPROTEC
aim to extract ore optimally and derive tangible value for its clients from
their operations while eliminating environmental risks. ENPROTEC is a global
partner in the mineral processing industry, offering a diverse range of
solutions and technologies.

 

ENPROTEC is committed to working together with Premier on the Zulu plant to
mitigate the current flotation plant constraints to produce a high grade
saleable SC6 concentrate at the required design throughput.

 

Competent Persons Statement

Bruce Cumming, a consulting geologist to Premier, has reviewed and approved
this release to the extent that reference is made to the geology and
mineralogy of the Zulu pegmatites. Mr. Cumming is a SACNASP and GSSA
registered geoscientist with 48 years' experience in exploration and project
management, in multicommodity projects throughout Africa.

 

Market Abuse Regulations

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the
European Union (Withdrawal) Act 2018 ("UK MAR").

The person who arranged the release of this announcement on behalf of the
Company was George Roach.

A copy of this announcement is available at the Company's website,
www.premierafricanminerals.com (http://www.premierafricanminerals.com)

Enquiries:

 

 George Roach                      Premier African Minerals Limited    Tel: +27 (0) 100 201 281
 Michael Cornish / Roland Cornish  Beaumont Cornish Limited            Tel: +44 (0) 20 7628 3396

                                   (Nominated Adviser)
 Douglas Crippen                   CMC Markets UK Plc                  Tel: +44 (0) 20 3003 8632
 Toby Gibbs/Rachel Goldstein       Shore Capital Stockbrokers Limited  Tel: +44 (0) 20 7408 4090

 

Nominated Adviser Statement

Beaumont Cornish Limited ("Beaumont Cornish"), which is authorised and
regulated in the United Kingdom by the Financial Conduct Authority, is acting
as nominated adviser to the Company in connection with this announcement and
will not regard any other person as its client and will not be responsible to
anyone else for providing the protections afforded to the clients of Beaumont
Cornish or for providing advice in relation to such proposals. Beaumont
Cornish has not authorised the contents of, or any part of, this document and
no liability whatsoever is accepted by Beaumont Cornish for the accuracy of
any information, or opinions contained in this document or for the omission of
any information. Beaumont Cornish as nominated adviser to the Company owes
certain responsibilities to the London Stock Exchange which are not owed to
the Company, the Directors, Shareholders, or any other person.

Forward Looking Statements

Certain statements in this announcement are or may be deemed to be forward
looking statements. Forward looking statements are identified by their use of
terms and phrases such as ''believe'' ''could'' "should" ''envisage''
''estimate'' ''intend'' ''may'' ''plan'' ''will'' or the negative of those
variations or comparable expressions including references to assumptions.
These forward-looking statements are not based on historical facts but rather
on the Directors' current expectations and assumptions regarding the Company's
future growth results of operations performance future capital and other
expenditures (including the amount. Nature and sources of funding thereof)
competitive advantages business prospects and opportunities. Such forward
looking statements reflect the Directors' current beliefs and assumptions and
are based on information currently available to the Directors. A number of
factors could cause actual results to differ materially from the results
discussed in the forward-looking statements including risks associated with
vulnerability to general economic and business conditions competition
environmental and other regulatory changes actions by governmental authorities
the availability of capital markets reliance on key personnel uninsured and
underinsured losses and other factors many of which are beyond the control of
the Company. Although any forward-looking statements contained in this
announcement are based upon what the Directors believe to be reasonable
assumptions. The Company cannot assure investors that actual results will be
consistent with such forward looking statements.

 Glossary
 "Li2O"               Lithium Oxide (Lithia) - an inorganic lithium compound used to assess lithium
                      minerals.
 "m"                  Meter.
 "ROM"                Run-of-mine.
 "SC6"                spodumene concentrate.
 "Assay Block Model"  Block modelling refers to a subset of 3D models. Normally, the blocks or cells
                      are measured x by y by z, in metres. In a block model, geological zones are
                      divided into blocks and the tonnage and grade of contained mineral is
                      estimated for each block. The shape of blocks (either cubes or rectangular
                      cuboids) and the estimation methods vary according to the specific
                      requirements of a project.
 "XRT"                X-ray sorting technique where specific mineral bearing rock can be separated
                      from specific mineral-poor rock and other impurities. This upgrades in metal
                      terms the material feed to the plant and lowers the tonnage of rock requiring
                      processing which results in improved economics for mineral processing
                      operations.

 

Notes to Editors:

Premier African Minerals Limited (AIM: PREM) is a multi-commodity mining and
natural resource development company focused on Southern Africa with its RHA
Tungsten and Zulu Lithium projects in Zimbabwe.

 

The Company has a diverse portfolio of projects, which include tungsten, rare
earth elements, lithium and tantalum in Zimbabwe and lithium and gold in
Mozambique, encompassing brownfield projects with near-term production
potential to grass-roots exploration. The Company has accepted a share offer
by Vortex Limited ("Vortex") for the exchange of Premier's entire 4.8%
interest in Circum Minerals Limited ("Circum"), the owners of the Danakil
Potash Project in Ethiopia, for a 13.1% interest in the enlarged share capital
of Vortex. Vortex has an interest of 36.7% in Circum.

 

Ends

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