(Alliance News) - Premier African Minerals Ltd said Tuesday it has commissioned grid electrical power to its 49%-owned RHA tungsten project, in Zimbabwe.
As of now, PAM said adequate power is available from the national grid to consider the resumption of plant operations at the end of January 2020 to reprocess historic tailings.
Chief Executive George Roach said: "We are reassured by the continued commitment of National Indigenisation & Economic Empowerment Fund to meeting the financial commitment to the funding of RHA."
The company previously reported the potential reprocessing of tailings in the summer of 2016.
"The test work conducted at that time remains valid and the availability of electrical power has substantially reduced the cost associated with operating the plant," Roach said.
Roach continued: "Similarly, and by arrangement with MN Holding Ltd in which Premier has recently acquired a shareholding, the capital plant needed to feed the tailings at RHA is now expected to be potentially available to RHA at net operating cost only."
PAM also noted the historic tailings are already mined and milled.
"Based on the above, I believe that it is completely logical that RHA should now look to consider the reprocessing of the tailings dumps as soon as possible," Roach added.
Shares in Premier African Minerals were 5.6% lower in London on Tuesday at 0.092 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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Premier African Minerals (PREM)