Last checked at 25 May 2023 08:30
25 May 2023
Premier African Minerals Limited
Zulu Lithium Project Update
Premier African Minerals Limited ("Premier" or the "Company"), is pleased to provide a further update on progress at Zulu Lithium and Tantalum Project ("Zulu").
Highlights
· | Plant provider has recommended staged approach to optimisation. |
· | First Spodumene (SC6) shipments now scheduled for June 2023. |
· | Final optimisation now expected in Quarter 4 of 2023 following plant modifications. |
· | Production from Spodumene float circuit expected to increase by 25% after final optimisation. |
· | Mining operations continue to confirm resource model. |
George Roach, CEO commented, "The process plant is fully commissioned and capable of producing concentrate. The Plant Supplier has advised that the milling and sizing component of the plant requires certain limited modifications to allow for full optimisation to design capacity throughput. The Plant Supplier has provided details and timelines for this remedial action and pending completion of this work, has advised that expected production of concentrate to 30 June 2023 will be 1,376 tons and production for July and August will be 1,137 tons per month, increasing to 2,359 tons in September, 3,577 tons in October 2023 and 4,471 tons from 1 December 2023.
At present concentrate prices and production at these current levels to the end of August, the Company expects Zulu to operate profitably.
The modifications include the upgrade of screening, relocation of the mill and addition of cyclones to remove correctly sized material to the floatation plant. Premier understands that the costs associated with this remedial action will be met by the plant supplier, and we will work with them to ensure that the plant achieves nameplate throughput expeditiously.
As announced on 29 March 2023, Premier's requirements to supply spodumene to Canmax Technologies Co., Ltd. ("Canmax") are to ship first product by 30 May 2023 (which will not now be met), failing which CanMax may elect to cancel the Marketing and Pre-Payment Agreement and require that the prepayment plus interest is settled within 90 days following notice. Canmax has always been supportive of Premier, and we continue to engage with them and look forward to first shipment in June 2023.
While frustrated with the timeline for putting the plant into full production, I am encouraged by our growing confidence in our resource and mining operations, near completion of our dam and tailings facility, performance of the crushing, sorting, and floatation elements of the plant.
The Company has previously advised that the delays had caused our cash to be constrained. Recent exercise of options and issue of remaining shares free from pre-emptive rights by way of direct placement, has provided interim relief to this position. Alternative further funding may need to be sought if there are any further significant shipment delays."
Drill Holes: Lithium & Tantalum Results
The table below sets out the composites determined, as per the outlined compositing routine in the text below the table, from analyses received from the independent external laboratory (SGS) for holes ZDD149, ZDD154, MIDI-GT-05A, MIDI-GT-06, MIDI-GT-07, MIDI-GT-08, ZT005, ZT011 & ZT012.
Table 1 -Assay Summary Results
Hole | From (m) | To (m | Width* (m) | Li2O% | Ta2O5 ppm | Rb ppm |
MDI-GT-05A
| 195.90
| 209.55
| 13.65
| 1.86
| 127
| 539
|
MDI-GT-06
| 67.60
| 75.55
| 7.95
| 1.34
| 77
| 1161
|
MDI-GT-06
| 125.40
| 132.55
| 7.15
| 1.33
| 75
| 1565
|
MDI-GT-07
| 48.87
| 54.32
| 5.45
| 1.41
| 76
| 1652
|
|
|
|
|
|
|
|
MDI-GT-07
| 70.00
| 75.64
| 5.64
| 1.03
| 45
| 1585
|
MDI-GT-07 | 79.33
| 88.20
| 8.87
| 0.87
| 112
| 1689
|
|
|
|
|
|
|
|
Incl. | 80.33
| 81.33
| 1.00 | 1.68
| 167
| 1301
|
MDI-GT-07
| 104.25
| 106.82
| 2.57
| 1.26
| 45
| 1092
|
MDI-GT-07
| 117.30
| 120.24
| 2.94
| 1.91
| 62
| 1399
|
Incl. | 117.30
| 118.30
| 1.00
| 3.23
| 79
| 1677
|
MDI-GT-07
| 131.77
| 140.20
| 8.26
| 1.14
| 111
| 1088
|
Incl. | 132.77
| 133.84
| 1.07 | 1.92
| 2
| 771
|
MDI-GT-08 | 90.10
| 96.10
| 6.00
| 0.95
| 85
| 1522
|
|
|
|
|
|
|
|
Incl. | 92.10
| 93.10
| 1.00
| 1.88
| 123
| 1635
|
MDI-GT-08
| 130.68
| 133.61
| 2.93
| 2.18
| 32
| 393
|
MDI-GT-08
| 137.45
| 146.55
| 9.10
| 1.52
| 56
| 1471
|
Incl. | 140.00
| 141.85
| 1.85
| 2.32
| 102
| 1234
|
ZDD149
| 295.56
| 297.88
| 2.32
| 1.20
| 18
| 2408
|
ZDD149
| 300.19
| 302.52
| 2.33
| 1.25
| 53
| 433
|
ZDD154
| 222.32
| 229.18
| 6.86
| 1.60
| 72
| 667
|
ZT005
| 22.00
| 24.00
| 2.00
| 1.20
| 72
| 1800
|
ZT005
| 27.60
| 30.10
| 2.50
| 0.66
| 58
| 1140
|
ZT005
| 35.40
| 38.00
| 2.60
| 1.43
| 54
| 1312
|
ZT005
| 42.60
| 47.50
| 4.90
| 0.53
| 85
| 1657
|
ZT011
| 71.11
| 73.50
| 2.39
| 0.87
| 53
| 3550
|
ZT012
| 35.71
| 41.00
| 5.29
| 0.54
| 58
| 2776
|
*Not True Width but drilled width
**0.50% Li2O cut-off applied.
The following compositing routine has been applied:
· | 0.50% Li2O cut-off was applied to the pegmatitic intersections only. |
· | 0.5% Li2O are not reported. |
· | Within any composite of >2m thickness, high-grade intersections of 1m and greater are reported provided the high-grade intersection is a multiple of x 1.5 of the overall weighted composite grade, and |
· | Within any composite, inclusions of country rock of 2O.
|
The following Table 3 sets out the drill hole collar coordinates for the drill holes reported in Table 1 above:
Table 2 - Drill Holes Collar Coordinates
Dhole | UTM 35S* Easting | UTM 35S* Northing | Elevation (AMSL) | Azimuth TN (°) | Collar Dip (°) | EOH (m) |
MDI-GT-05A | 751164.023 | 7782864.865 | 1341.68 | 19.41 | -69.68 | 250.1 |
MDI-GT-06 | 751095.609 | 7782404.083 | 1316.569 | 153.92 | -71.25 | 202.48 |
MDI-GT-07 | 751167.197 | 7782345.715 | 1313.152 | 217.4 | -67.48 | 202.58 |
MDI-GT-08 | 751109.254 | 7782250.679 | 1324.084 | 194.27 | -70.48 | 151.68 |
ZDD149 | 750709.986 | 7782110.631 | 1328.076 | 105.94 | -50.76 | 361.68 |
ZDD154 | 751077.739 | 7782108.867 | 1320.744 | 291.6 | -53.56 | 251.48 |
ZT005 | 751196.456 | 7782304.848 | 1312.501 | 290 | 0 | 127.00 |
ZT011 | 751226.4069 | 7782721.784 | 1331.701 | 290 | 0 | 98.00 |
ZT012 | 751199.5709 | 7782684.17 | 1326.97 | 290 | 0 | 80.50 |
* ARC1950 Datum (10m local datum shift)
The Geology of Zulu
The area, located in the Fort Rixon Greenstone Belt, is underlain by Archaean-aged meta-volcanics and meta-sedimentary sequences of the Bulawayan Supergroup, with serpentinites and banded iron formations at the base in the east and metamorphosed volcano-sedimentary sequences to the west. The greenstone belt is tear drop shaped measuring 30 km long and 19 km wide near the broad section at the top. Metamorphism is retrograded to Greenschist facies.
The Zulu Pegmatite is a LCT (Lithium-Caesium-Tantalum) pegmatite swarm which intrudes along the contacts between serpentine and metamorphosed volcano-sedimentary sequences over a strike length of several kilometres. Outcrop widths vary between 10 and 50m. The pegmatite bodies strike N20° and dip 70° to 90° to the west.
The area was first pegged in 1955 by J.S. Willemse and intensely explored, under option, by mapping, trenching, and drilling by Rhodesian Selection Trust Co. Ltd. ("RST") in 1958. In 1961 and 1962 a small quantity of petalite from the River Pegmatites (see below) was mined by W. Burchett in partnership with J.S. Willemse. Premier later acquired the claims in 2013.
Recent mapping and interpretation of the pegmatite swarm from semi-quantitative X-Ray Diffraction (XRD) has identified three distinct phases of pegmatites. A spodumene-rich, thick pegmatite named the Main Zone which lies north and south of the Machakwe River, footwall low-spodumene pegmatites with associated tantalum and rubidium and a suite of petalite-bearing pegmatites of short strike length, named the River Pegmatites.
In general, the lithium minerals, occurring in varying quantities, are coarse grained with associated feldspars and quartz with only very minor sulphides being observed. In several contact zones, the lithium-bearing amphibole, holmquistite, has been observed.
Qualified Person
Bruce Cumming, consulting geologist with Premier, has reviewed and approved this release to the extent that reference is made to the Zulu. Mr. Cumming is a SACNASP and GSSA registered geoscientist with 47 years' experience in exploration and project management, in multicommodity projects throughout Africa. 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.
The person who arranged the release of this announcement on behalf of the Company was George Roach.
Enquiries:
George Roach | Premier African Minerals Limited | Tel: +27 (0) 100 201 281 |
Michael Cornish / Roland Cornish | Beaumont Cornish Limited (Nominated Adviser) | Tel: +44 (0) 20 7628 3396 |
Douglas Crippen | CMC Markets UK Plc | Tel: +44 (0) 20 3003 8632 |
John More/Toby Gibbs | Shore Capital Stockbrokers Limited | Tel: +44 (0) 20 7408 4090 |
Forward Looking Statements:
Certain statements in this announcement are or may be deemed to be forward looking statements. Forward looking statements are identied 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 reect 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 | |
"amphibole" | A class of rock-forming silicate or aluminosilicate minerals typically occurring as fibrous or columnar crystals. |
"Banded Iron Formation (BIF)" | A sedimentary rock consisting of alternating layers of iron oxides and iron-poor chert. |
"Greenschist facies" | The Greenschist facies is at low pressure and temperature. The facies is named for the typical schistose texture of the rocks and green colour of the minerals chlorite, epidote and actinolite. |
"feldspar" | An aluminosilicate mineral consisting of potassium, sodium, and calcium. |
"Holmquistite" | A lithium-bearing amphibole related to hornblende with a formula as (Na,K,Ca)Li(Mg,Fe)3Al2Si8O22(OH)2. |
"Lepidolite" | A pink to lavender coloured lithium bearing mineral (KLi2Al(Si4O10)(F,OH)2). |
"Li to Li2O" | x 2.153. |
"Li" | Lithium. |
"Li2O" | Lithium Oxide (Lithia) - an inorganic lithium compound used to assess lithium minerals. |
"m" | Meters. |
"meta-sediments" | Sedimentary rocks that have been metamorphosed. |
"meta-volcanics" | Volcanic rocks that have been metamorphosed. |
"Petalite" | A white coloured lithium bearing mineral (LiAl(Si4O10)). |
"Plant Supplier" | Stark Resources. |
"ppm" | parts per million. |
"Rb" | Rubidium. |
"serpentinite" | A dark, typically greenish metamorphic rock, consisting of serpentine or related minerals, formed when mafic igneous rocks are altered. |
"Spodumene" | A white to pink coloured lithium bearing mineral (LiAlSi2O6). |
"Ta to Ta2O5" | x 1.221. |
"Ta" | Tantalum. |
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.
In addition, the Company holds a 19% interest in MN Holdings Limited, the operator of the Otjozondu Manganese Mining Project in Namibia.
Ends