REG - Premier African Min. - Zulu Lithium plant Update

Premier African MineralsAnnouncement

17/10/2024 07:00

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RNS Number : 5084I  Premier African Minerals Limited  17 October 2024

17 October 2024

Premier African Minerals Limited

 

 Zulu Lithium Plant Update

 

The Board of Premier African Minerals Limited ("Premier" or the "Company") is
pleased to provide this update on the plant status and next steps to
recommence production at Zulu Lithium and Tantalum ("Zulu").

 

Status of operations at Zulu

Test work reports now submitted by Enprotec, and further supported by
independent work undertaken by the supplier of the reagents used to float
Spodumene from Zulu ore, indicate that inconsistent grade and recovery in the
Spodumene flotation plant are primarily due to inadequate reagent dosing in
the flotation circuit and excessive residence time in the Spodumene cleaning
circuit. Adjustments to the reagent dosing should enhance selectivity in the
flotation process, while reducing the residence time in the cleaning circuits
should minimize the flotation of gangue minerals.

 

The proposed adjustments will consist of fabricated inserts within the
cleaning stages that will reduce the volume of each cleaner respectively.
These adjustments will align the residence times more closely with the test
work which produced the best results for Spodumene grade and recovery. Designs
for the inserts is complete and fabrication will commence as soon as possible.
The direct cost for the inserts is less than US$50,000 and the time to
fabricate is estimated at roughly 6 weeks.

 

As previously advised, the Company has a further fall-back position in the
recommendations made following the engagement of Chinese Engineering,
Procurement and Construction Management ("EPCM Contractor") as an alternative
remedial strategy to the floatation plant. The strategy recommended by EPCM
Contractor involves the supply of a complete spodumene flotation plant based
on similar technology to that in extensive use elsewhere. The Company
considers that the option discussed above related to inserts to the existing
float cells is of sufficiently low cost and short time to support this option
immediately. The EPCM Contractor option remains and may still be considered as
part of the near-term plans to increase production at Zulu.

 

At the same time, it should be noted that the Company has engaged other
reagent suppliers to continuously review and if indicated recommend
alternative reagent regimes. The Company previously reported on several
options for the future of Zulu, all of which remain under consideration, and
due diligence is being undertaken by potentially interested parties. As the
Company cannot rely on any single outcome this strongly supports the decision
to proceed with Enprotec's advice on the plant, irrespective of the outcome of
these strategic initiatives.

Shareholders should note that the effectiveness of the measures referred to
above will only be known as and when the Zulu plant is fully commissioned and
brought into commercial production, the timing of which continues to be
uncertain.

 

George Roach, CEO commented" With this progress on the plant, and the recently
notified updated resource estimate, Premier and its shareholders should be
looking at the immediate future with much more confidence. "

 

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)

ENPROTEC

Enprotec have reviewed and approved this release to the extent that reference
is made to the flotation plant. 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 involvement in Zulu was originally under the engagement and direction
of Stark. Following Zulu's engineering team taking over as the operator of the
Zulu plant, Enprotec have agreed to provide such support as requested by Zulu
as may be required in the continuing optimisation, remedy and improvement of
the Stark designed flotation plant.

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

 

Important notice

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
 "Stark"  The Zulu design, procurement, installation, and commissioning
          contractor, Stark International Projects Limited.

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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