News blog

Premier African Minerals Ltd

• BY: Andrew Hore |
• POSTED: 28/08/2013 |

Premier African Minerals Ltd has reported positive news about its RHA tungsten project in Zimbabwe and its share price has recovered some of its decline this year.

The share price rose 162% to 1.7p, valuing Premier at £5.71m. Premier joined AIM in December 2012, when it raised £1.5m ($2.4m) at 2p a share.

The tungsten project is in the Kamativi Tin Belt in north-west Zimbabwe. The preliminary economic assessment and concept mining study confirms that there is potential for a mine operation with an annual rate of ore production of 192,000 tonnes over a six year mine life. The capital cost is estimated at $13.5m. Operating costs could be $59.30/tonne. The NPV before any discount and tax is $118m. Premier owns 100% of the project but the underlying discounted value after tax will be lower than this undiscounted NPV.

There is an inferred SAMREC code compliant resource of 1,093,000 tonnes at a diluted grade of 8.7 kg/t WO3 and an indicated resource of 147,000 tonnes at a diluted grade of 4.7 kg/t WO3. Mining could start in 2014.

Premier swapped its Togo and Malian phosphate and potash assets for a 42% stake in AgriMinco, which has an interest in the Danakil potash project. 

There was $1.52m of cash in the balance sheet at the end of 2012. Premier also has an interest in the Katete rare earths project in Zimbabwe and a gold project in northern Togo, which was acquired in January.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFAugust2013_47.pdf