REG - Premier African Min - Zulu Exploration, EPO Update and Funding

Premier African MineralsAnnouncement

14/12/2021 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20211214:nRSN5157Va&default-theme=true

RNS Number : 5157V  Premier African Minerals Limited  14 December 2021

14 December 2021

Premier African Minerals Limited

 

Zulu Exploration, EPO Update and Funding

 

Premier African Minerals Limited ("Premier" or the "Company"), is pleased to
announce a placing today to raise £800,000 before expenses at an issue price
of 0.16 pence per new ordinary share for the ongoing DFS at Premier's Zulu
Lithium and Tantalum Project ("Zulu") and to provide an interim update on
progress at Zulu and the EPO.

 

Highlights:

 ·         Large diameter metallurgical test work borehole drilling complete.
 ·         5,000 meters drilled to date (25 November 2021: 4,190 meters drilled).
 ·         Completion of holes 27 and 28 expected shortly.
 ·         Samples submitted for assay work total 780 (25 November: 499 from 15 bore
           holes (25 November: 11).
 ·         First exploratory borehole in extended EPO expected to break ground during
           December 2021, in target area identified through regional structural
           identification program conducted by Southern Mapping.

 
 ·         Limited early assay results from SGS in line with Zulu Maiden Resource
           Statement grade (6 June 2017) and will facilitate calibration of LIBS for
           future field assay.
 ·         Placing to raise £800,000 before expenses intended to lift any possible
           operational pressures during funding and off take negotiations currently
           underway.

 

George Roach, CEO commented," Despite Covid-19 Omicron related delays at the
laboratory, some limited assay results reaffirm Premier's decision to use a
LIBS system at Zulu. The LIBS analysis set out in our announcement on 12
October 2021 with the independent SGS assay results will allow us to complete
the fine-tuning calibration process of the LIBS system such that we expect
reliable and rapid turnaround from future internal analysis that are conducted
at Zulu.

Progress at Zulu is good. Over 2,000 meters of large diameter drilling has
been completed and this will allow first pass geotechnical analysis and
provide the material for first ore sorting test work that will be undertaken
in Germany from January 2022. With the completion of this initial large
diameter drilling, the ongoing resource drilling is expected to accelerate
both within the existing declared resource estimate area and in adjoining
extensions thereto, where we continue to intersect visibly well mineralised
pegmatite intersections that give me confidence that we will see both an
improved level of confidence in the declared resource estimate area, and
important extensions thereto that should potentially see marked increases in
the overall resource estimate.

I have made reference to a number of ongoing negotiations intended to secure
funding for the balance of the DFS underway at Zulu, against a small disposal
of a direct interest in the project and assurance of mine build and off-take
finance. Due diligence is being undertaken by more than one capable potential
off-take partner.

As much as Premier is under due diligence, so too are those seeking to
conclude an off-take agreement with us. Although progress is good in my
opinion, there is no certainty of outcome until final agreements are concluded
and that is not the case at this time."

Lithium Results

As announced on 12 October 2021, we referred to early analysis using the LIBS
system. Sample assembly for that analysis was undertaken by capture of fines
resulting from core splitting at Zulu. In limited assays now received from the
independent laboratory (SGS), sample preparation from split core was prepared
under strict QAQC protocol and subsequently analysed. Residual material from
the laboratory sample preparation is now available to the Company and will be
analysed using the LIBS and will assist in any adjustment and calibration of
the LIBS that may be needed to ensure that the result of an analysis conducted
by the LIBS is the same as the analysis provided by the laboratory. With the
installation of the additional solar power unit at Zulu, sample preparation
conducted at site will be undertaken using the same procedure as that
undertaken in the reference laboratory.

In regard to the specific intersections previously analysed by the LIBS before
this calibration, the actual laboratory results received and a comparison with
the LIBS results are set out below.

Table 1. Recent drill results - actual versus LIBS results

 Hole ID  Collar Coordinates (UTM Arc 1950 Z35S)       Inclination -(⁰)    Azimuth (⁰)    End of Hole Depth (M)  Major Intersections         Li2O (%)  Li2O (%)

                                                                                                                                             SGS       LIBS
          Easting        Northing       Elevation                                                                From (M)  To (M)   Width
 ZDD52    751293         7782408        1315           60                  225            190                    47.32     53.32    6        1.11*     1.55
 Notes:
 i.      *SGS results compare to the reported grade in the Zulu Maiden
 Resource Statement as announced on 6 June 2017, which was 1.06 % Li2O using a
 cut-off of 0.5% Li20.

 ii.     To date, Premier has submitted 780 samples for preparation and
 assay and will continue to submit samples on a regular basis. Premier expects
 to receive results from the laboratory as the Covid related delays ease and
 will report on a regular basis thereafter.

The SGS analysis further supports our on-site identification of mineralised
pegmatite core recovered in the drilling process.

Quality Assurance/Quality Control (QA/QC)

 

The spatial location of the drill holes is derived by using a Global
Positioning System device within the existing and historical activity tenement
areas. The drill core was geologically logged, core was selected to be
sampled, and was subsequently split, sample ID number given, bagged, and sent
for analysis. The drill holes were surveyed downhole to provide spatial
accuracy of the assay results, as we incorporate those results into the
greater-known resource. All samples were analysed for lithium and tantalum by
SGS Laboratory Services in South Africa using fire assay (SGS code FAA303).
Multi-element scans (30 elements) were carried out by ICP-OS and ICP-MS after
sodium peroxide fusion (SGS code ICM90A).

Extended Exploration work within the EPO

 

Satellite imagery (prepared by Southern Mapping) was used to delineate target
areas over the EPO. The resulting inverted grey scale image, with potential
target areas visible in red, can be viewed in the webpage link below. This
"inversion of bands" method highlights the spectra of interest, enabling the
technical team to create targets of potential interest, to be tested by ground
follow-up work.

The target generation technique uses a density estimation method and the
higher the density values, the higher the probability of mineralisation. The
known Zulu deposit and the targets of potential interest are clearly
identified in the image, adding to the Premier's expectation that there is
much more to come from the EPO region.

 

The potential target density estimation heatmap and their relationship to the
EPO area can be viewed on the webpage link below:

 

http://www.rns-pdf.londonstockexchange.com/rns/5157V_1-2021-12-13.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/5157V_1-2021-12-13.pdf)

 

Ground follow-up field work is ongoing within the exploration area, and thus
far two outcropping areas have been chosen for future drill work. The main
emphasis of this programme is to identify and increase the known resource of
the Zulu.

Placing

Premier has today issued by way of a placing ("Placing"), conditional on
admission, 500,000,000 new ordinary shares of nil par value ("Placing Shares")
at a Placing price of 0.16 pence per Placing Share to raise £800,000 before
expenses. The Placing Shares will, when issued, rank pari passu in all
respects with the existing ordinary shares. Monecor (London) Ltd, trading
as ETX Capital ("ETX Capital"), acted as the Company's sole placing agent in
respect of the Placing.

Application will be made for the Placing Shares to be admitted to trading on
AIM and admission is expected to take place on or around 20 December 2021.

The Placing has been arranged within the Company's existing share authorities.
Premier intends to use the proceeds of the placing to assist with further
funding of the ongoing works associated at the DFS at Zulu, the exploration of
the EPO area surrounding Zulu and general working capital purposes necessary
for the Company.

Total Voting Rights

Following the issue of the Placing Shares, the Company's issued share capital
consists of 19,418,009,831 Ordinary Shares, with voting rights. This figure
may be used by shareholders in the Company as the denominator for the
calculation by which they will determine if they are required to notify their
interest in, or a change to their interest in, the share capital of the
Company under the Financial Conduct Authority's Disclosure and Transparency
Rules.

Qualified Person:

Chris Male, Geologist with Premier, has reviewed and approved this release to
the extent that reference is made to Zulu. Mr. Male is a SACNASP and GSSA
registered geoscientist with 13 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.

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.

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 holds 5,010,333 shares in
Circum Minerals Limited ("Circum"), the owners of the Danakil Potash Project
in Ethiopia, which has the potential to be a world class asset. This holding
represents 4,8% of Circum shares in issue.

 

In addition, the Company holds a 19% interest in MN Holdings Limited, the
operator of the Otjozondu Manganese Mining Project in Namibia.

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)
 John More/Toby Gibbs                Shore Capital Stockbrokers Limited  Tel: +44 (0) 20 7408 4090
 Matthew Bonner                      EAS Advisors LLC                    Tel: +1 646 495 2225

 

Glossary of Technical Terms:

 "DFS"            Definitive Feasibility Study.
 "Density"        The mass or quantity of a given substance per unit of volume of that
                  substance, usually expressed in kilograms or tonnes per cubic metre.
 "EPO"            Exclusive Prospecting Area.
 "Grade"          Any physical or chemical measurement of the characteristics of the material of
                  interest in samples or product.
 "Li2O"           Lithium Oxide and is the standard referenced in our Mineral Resource Estimate.
 "LIBS"           Laser Induced Breakdown Spectroscopy

                  https://sciaps.com/libs-handheld-laser-analyzers/z-300/
                  (https://sciaps.com/libs-handheld-laser-analyzers/z-300/) .
 "M"              Meters.
 "metallurgical"  describing the science concerned with the production, purification and
                  properties of metals and their applications.
 "SGS"            SGS Laboratory Services in South Africa.

 

Ends

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDEADADFSDFFAA