Zimbabwe tungsten project to start production in 2014
Aim-listed Premier African Minerals is aiming to start low-cost production at its flagship RHA tungsten project, in the Kamativi tin belt, in Zimbabwe, during the second half of 2014, following positive results from a recent technical assessment.
Underground mine development was expected to start once openpit production had started, the company said on Monday.
The technical assessment followed an earlier preliminary economic assessment (PEA) and concept mining report, which confirmed the economic viability of the site supporting a low-capital 192 000 t/y tungsten-bearing ore operation with a six-year mine life.
The recently completed technical assessment included further optimisation work that had been undertaken by independent mining consultant Royal HaskoningDHV and a Whittle computer design optimisation on the proposed openpit at RHA.
The Whittle optimisation indicated a revised lower stripping ratio of 6.2:1, compared with 10:1 previously, and an optimal pit life of around 16 months, compared with the previous estimate of 12 months, the company stated.
“In line with this, we are in active discussions with potential funders for the project and possible offtake partners as one route to fast-track RHA towards production,” Premier said.
The new pit design was expected to increase the project’s undiscounted pretax net present value (NPV) to $120-million, up from $118-million previously.
"I am delighted to announce this positive upgrade to our recent PEA and concept mining study that further highlights the attractiveness of our flagship RHA tungsten project,” Premier CEO George Roach commented.
“With a revised NPV of $120-million and a significantly increased internal rate of return before tax of 378% now projected, coupled with the low-capex nature of the project with estimated costs of $13.5-million, excellent infrastructure, low-strip ratio and a relatively simple processing route expected, we approach the next stages of development with confidence," he added.
Meanwhile, Premier also, on July 5, received final approval from the TSX-V for the sale of one of its Togo subsidiaries, as well as its Mali subsidiaries to TSX-listed AgriMinco. The Premier subsidiaries held exploration permits for phosphates, clays and potash.
Following the transaction, the company now held 120-million new shares in AgriMinco, representing about 42% of the issued shares. Of these shares, 100-million would become tradable on November 1, while 20-million would remain in escrow pending the fulfilment of certain technical requirements imposed by the TSX-V.
“Through our shareholding in AgriMinco, we gain exposure to its highly prospective Danakil potash property in Ethiopia in which it has a 30% interest. AgriMinco has a free carry to scoping study and a total spend of $7-million.
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