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(Sharecast News) - Premier African Minerals updated the market on progress, and a potential alternative proposal for early production, at its Zulu Lithium and Tantalum Project on Monday.
The AIM-traded firm said that, since acceptance of the subscription by Suzhou TA&A Ultra Clean Technology in March, and with results from initial test work on ore sorting by Anzaplan in association with Stark, it was "clear" that a potential opportunity existed for Zulu to be brought into early production.
Chief executive officer George Roach said that potential would be based on a large-scale pilot plant using ore sorting technology, to concentrate spodumene-rich ore from other lithium minerals and gangue material, before milling and floatation to produce a spodumene concentrate only, and stock pile both a tantalum-rich fraction and petalite for future processing.
"Based on this plan, it is possible that such a plant could be in production in the first quarter of 2023, funded under an interest-free pre-purchase payment for spodumene concentrate to be supplied," Roach said.
"Shareholders should note that no funding has yet been arranged for this possible pilot plant and amongst many aspects of this whole concept still under scrutiny, this will still require completion.
"It is worth noting that the current demand for spodumene, and the resultant prices, significantly de-risk this concept and support Premier's recent focus in terms of both our drilling programme at Zulu that is now exclusively targeting high grade spodumene zones within the ore body at an indicated resource level, and on aspects of the definitive feasibility study in relation to implementation of the pilot plant."
Premier said that operation of the pilot plant would "fine tune" aspects of the process that would support the definitive feasibility study.
George Roach said further details would be provided "in due course", along with details of any finance arrangements, together with illustrative valuation and revenue projections for the pilot plant.
To date, the company said a total of 18,000 metres had been drilled at Zulu, and after a complete revision of quality assurance and control procedures and "all aspects" of sample preparation and analysis, assay testing and results were now continuing.
Premier said it would publish highlights and significant assay results "in due course", when available.
"I remind shareholders that Premier is potentially following an accelerated programme of early production to exploit the current opportunity," Roach said.
"There are identified risks and abatements inherent in this to a greater extent than may be the case following a fully-developed definitive feasibility study.
"However, the potential immediate availability of pre-purchase payment and existing spodumene price and demand are important and strong motivators in potentially pursuing this option."
At 1402 BST, shares in Premier African Minerals were down 10.22% at 0.36p.
Reporting by Josh White at Sharecast.com.
