Premier African Minerals Limited Drilling/Production Report (4980V)

TIDMPREM

RNS Number : 4980V

Premier African Minerals Limited

03 November 2017

Premier African Minerals Limited / Ticker: PREM / Index: AIM / Sector: Mining

For immediate release

3 November 2017

Premier African Minerals Limited

("Premier" or the "Company")

Casa Intersects High-Grade Mineralisation

Premier African Minerals Limited (AIM: PREM), the London listed mining and exploration company, is pleased to provide update on Casa Mining Limited in which Premier has a 4.5% interest.

Casa Mining Limited ("Casa") is carrying out a 5,000 metre drilling programme on its Akyanga Deposit in Democratic Republic of the Congo ("DRC") with the aim to increase and upgrade the existing Mineral Resource Estimate.

Highlights:

   --    8 holes completed to date totalling 1,920 metres 
   --     Hole MSDD0110 intersected 24.75m at 8.04 g/t from 200.75m including: 

o 5.40m at 22.63 g/t Au from 207.10m

   --    Akyanga Deposit remains open in multiple directions 

George Roach, Chief Executive Officer of Premier, commented: "Well done to the team at Casa as these results are extremely encouraging and again confirm the continuity as well as high-grade potential in the southern part of the Akyanga Deposit where these holes were drilled. We look forward to further developments over the coming weeks."

Drilling Results

The table below sets out the results of the latest drill holes for which assays have been received by Casa from SGS Laboratory Services in Mwanza in Tanzania.

Table 1. Drill Intercepts

 
  Hole Id      From    To (m)   Length   Au Gold 
                (m)               (m)     (g/t) 
-----------  -------  -------  -------  -------- 
  MSDD0110    142.00   145.30    3.30     2.27 
-----------  -------  -------  -------  -------- 
              200.75   225.50   24.75     8.04 
-----------  -------  -------  -------  -------- 
  MSDD0110 
  Includes    207.10   212.50    5.40     22.63 
----------- 
              216.50   217.50    1.00     10.50 
----------- 
              223.50   225.50    2.00     7.29 
-----------  -------  -------  -------  -------- 
  MSDD0111    129.00   137.00    8.00     1.14 
-----------  -------  -------  -------  -------- 
  MSDD0112    100.15   107.30    7.15     1.10 
-----------  -------  -------  -------  -------- 
              118.40   124.20    5.80     3.49 
-----------  -------  -------  -------  -------- 
 
   Notes:     1) intercept lengths are expressed in drilled widths 

2) Intersections have been reported using a 0.5g/t cutoff and a minimum intersected width of 3m with allowance for up to 3m of internal waste. Some +0.5g/t intersections have not been reported if they are single metre intersections or are not considered to be significant due to their isolated position compared to the other intersections.

3) The information in Table 1 above is based on information provided by Casa. Premier has not independently verified the drill results.

Quality Assurance/Quality Control (QA/QC)

The drilling was conducted using diamond core drilling with samples being collected at one metre intervals and half core sample of approximately 2-4kg was sent to SGS Laboratory Services in Mwanza, Tanzania, an ISO accredited laboratory. The sample was fully pulverised and analyses for gold obtained using a 50g lead collection fire assay and an atomic absorption spectrometry finish to 0.01ppm Au detection limit. Full analytical QA/QC is achieved using a suite of certified standards, laboratory standards, field duplicates, repeats, blanks and grind-size analysis.

The spatial location of the samples is derived using GPS collar survey pickups and Reflex single shot downhole surveys taken every 40m down hole. True widths have not been determined as the level of detail required to calculate accurate true widths is not yet available, as a result down hole widths have been reported. However true widths are not expected to differ significantly from the down hole widths reported.

Qualified Person

The information in this announcement that relates to Exploration Targets, Exploration Results (including drilling results) and Mineral Resources or Ore Reserves is based on information compiled by Mr Thomas Rogers (BSc. Hons, MSAIMM, MEIZ) of African Mining Consultants (AMC). Mr Rogers has sufficient experience in the activity which he is undertaking to qualify as a Competent Person as defined under the JORC Code (2012). AMC consents to the inclusion in this announcement of the matters based on this information, including the drilling results set out in Table 1 above, and the references to their name, in the form and context in which it appears.

The information in this announcement is based on information provided and approved by Casa Mining Limited and AMC. The drill results have not been independently verified by Premier African Minerals Limited.

Casa Mining Limited

Casa has a 71.25% interest and is the operator of the Misisi Gold Project located in South Kivu, eastern DRC, approximately 350km south of Bukavu and 180km north of Kalemie.

In 2014, SRK Consultants (UK) Limited ("SRK") reported an Inferred Mineral Resource at the Akyanga deposit of 5.5 Mt at a grade of 1.5 g/t Au for approximately 272koz of contained metal. SRK has further reported an Inferred transition gold Mineral Resource of 16.2 Mt at a grade of 1.8 g/t Au for approximately 927koz of contained metal.

MDM Engineering Projects Limited ("MDM"), in conjunction with SRK, completed a scoping feasibility study for an 80,000 oz year heap-leach operation at the Akyanga Deposit resulting in an ungeared net present value ("NPV") (at a discount of 8%) and internal rate of return ("IRR") of US$171 million and 35% respectively at a US$1,300/oz gold price. This assumes a contract mining scenario with an initial capital cost estimate of US$87.4 million and a total operating cost of US$628/oz.

African Mining Consultants Limited ("AMC") recently completed a review and re-interpretation of the geological model of the Akyanga deposit and reported a 1.05Moz JORC inferred resource at a grade of 2.27 g/t Au (using a 1.5 g/t Au cut-off) within a lower grade envelope of 1.57Moz at a grade of 1.65 g/t Au (using a 0.5g/t cut-off grade).

For more information, please visit www.casamining.com

Enquiries:

 
                                Premier African         Tel: [phone] 
 Fuad Sillem                    Minerals Limited                  922074 
------------------------  ---------------------------  ----------------- 
 Michael Cornish                Beaumont Cornish            Tel: +44 (0) 
  / Roland Cornish                   Limited                20 7628 3396 
                               (Nominated Adviser) 
------------------------  ---------------------------  ----------------- 
 Jerry Keen/Edward         Shore Capital Stockbrokers       Tel: +44 (0) 
  Mansfield                          Limited                20 7408 4090 
------------------------  ---------------------------  ----------------- 
                              Beaufort Securities           Tel: +44 (0) 
 Jon Belliss                         Limited                20 7382 8300 
------------------------  ---------------------------  ----------------- 
 Charles Goodwin/Harriet        Yellow Jersey PR        Tel: [phone] 
  Jackson                            Limited                      275882 
------------------------  ---------------------------  ----------------- 
 

Notes to Editors:

Premier African Minerals Limited (AIM: PREM) is a multi-commodity mining and natural resource development company focused in Southern and Western Africa with production started at its flagship RHA project in Zimbabwe.

The Company has a diverse portfolio of projects, which include tungsten, rare earth elements, gold, lithium and tantalum in Zimbabwe and Benin, encompassing brownfield projects with near-term production potential to grass-roots exploration. In addition, the Company holds 5,010,333 million 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. At present those shares are valued at US$10.2 million based on the latest price at which Circum has accepted subscriptions. Premier also has an interest in Casa Mining Limited, a privately-owned exploration company that has a 71.25% interest in the 1.5 million ounces inferred resource Akyanga gold deposit in the DRC.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

Glossary of Technical Terms:

 
 "Assay"              The laboratory test conducted 
                       to determine the proportion of 
                       a mineral within a rock or other 
                       material. For copper, usually 
                       reported as percentage which is 
                       equivalent to percentage of the 
                       mineral (i.e. copper) per tonne 
                       of rock 
-------------------  ---------------------------------------- 
 "Au"                 Gold 
-------------------  ---------------------------------------- 
 "g/t"                grams per tonne; equivalent to 
                       parts per million ('ppm'). 
-------------------  ---------------------------------------- 
 "intercept"          Refers to a sample or sequence 
                       of samples taken across the entire 
                       width or an ore body or mineralised 
                       zone. The intercept is described 
                       by the entire thickness and the 
                       average grade of mineralisation 
-------------------  ---------------------------------------- 
 "Mineral Resource"   A "Mineral Resource" is a concentration 
                       or occurrence of diamonds, natural 
                       solid inorganic material, or natural 
                       solid fossilised organic material 
                       including base and precious metals, 
                       coal, and industrial minerals 

                       in or on the Earth's crust in 
                       such form and quantity and of 
                       such a grade or quality that it 
                       has reasonable prospects for economic 
                       extraction. The location, quantity, 
                       grade, geological characteristics 
                       and continuity of a Mineral Resource 
                       are known, estimated or interpreted 
                       from specific geological evidence 
                       and knowledge. 
-------------------  ---------------------------------------- 
 

ENDS

This information is provided by RNS

The company news service from the London Stock Exchange

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November 03, 2017 04:08 ET (08:08 GMT)