REG - Premier African Min - Zulu Lithium Project Update

Premier African MineralsAnnouncement

25/05/2023 08:30

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230525:nRSY6438Aa&default-theme=true

RNS Number : 6438A  Premier African Minerals Limited  25 May 2023

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)  Li(2)O%  Ta(2)O(5) 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% Li(2)O cut-off applied.

The following compositing routine has been applied:

 ·                                         0.50% Li(2)O cut-off was applied to the pegmatitic intersections only.
 ·                                         <2m standalone composites at the cut-off grade but with an overall weighted
                                           average grade of >0.5% Li(2)O 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 <2m thickness are
                                           included within the composite provided the overall grade of the composite is
                                           not <0.50% Li(2)O.

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*     UTM 35S*     Elevation (AMSL)  Azimuth TN (°)   Collar Dip          EOH

             Easting      Northing                                               (°)          (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            Tel: +44 (0) 20 7628 3396

                                     (Nominated Adviser)
 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 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
 "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)(3)Al(2)Si(8)O(22)(OH)(2.)
 "Lepidolite"                   A pink to lavender coloured lithium bearing mineral (KLi2Al(Si4O10)(F,OH)2).
 "Li to Li2O"                   x 2.153.
 "Li"                           Lithium.
 "Li(2)O"                       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

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  MSCGRGDUGDDDGXU