Premier African Minerals Limited Increase and Upgrade in Resources at RHA (8264Q)

TIDMPREM

RNS Number : 8264Q

Premier African Minerals Limited

15 September 2017

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

For immediate release

15 September 2017

Premier African Minerals Limited

("Premier" or the "Company")

Increase and Upgrade in Underground Resources at RHA

Impact of Increase in Tungsten Concentrate Price

Premier African Minerals Limited (AIM: PREM), the London-quoted mining and exploration company, is pleased to report an upgrade and increase in the underground Mineral Resource Estimate at the RHA Tungsten (RHA) Mine in Zimbabwe. Premier owns 49% of RHA and is the operator.

Highlights

-- 32% increase in the underground Measured Resource category to 0.029 million tonnes and a 52% increase in grade to 5.45kg WO3 per tonne.

-- 33% increase in the underground Indicated Resource category to 0.076 million tonnes and a 95% increase in grade to 6.31kg WO3 per tonne

-- 11% increase in overall underground grade to 4.72kg WO3 per tonne and 16% increase in total underground Mineral Resources contained metal to 6,257,493 kg WO3

George Roach, Premier's CEO, commented: "This increase in tonnes and grade of the underground Mineral Resources at RHA provides both higher confidence in these Mineral Resources at RHA and supports our long-term confidence in the mine. At the same time, the recent substantial increase in the price of APT to $310-$325 per mtu has reduced the breakeven throughput tonnage required from underground ore at the predicted Resource grade to approximately 4,500 tonnes per month and increases potential profitability as and when plant optimisation completes and we are able to process at the higher throughput tonnages projected for later in Q4 this year. Most importantly the reduced breakeven point can also be achieved without any feed from open pit operations and supports our determined efforts over the past year to bring RHA into continuous production. We have commenced an independent review of the open pit Mineral Resources and we will report further when this review is completed. With ongoing curtailment in supply of wolframite from China, we believe that RHA can become one of the larger producers."

Summary of Resources Increase and Upgrade

The underground Mineral Resource Estimate ("MRE") update set out in Table 1 below is prepared in accordance with the SAMREC code and in compliance with Appendix 3 of the AIM Note for Mining and Oil & Gas Companies - June 2009). No cut-off grade has been applied to the Mineral Resources as this is not required when XRT based sorting is applied.

Table 1: Summary of the Underground Mineral Resources (September 2017)

 
 Category       Gross                               Net attributable                    Operator 
-------------  ----------------------------------  ----------------------------------  --------- 
                  Tonnes        WO3     Contained     Tonnes        WO3     Contained 
                 (millions)    Grade      metal      (millions)    Grade      metal 
                               (kg/t)      (kg)                    (kg/t)      (kg) 
-------------  ------------  --------  ----------  ------------  --------  ----------  --------- 
 Underground 
               ------------  --------  ----------  ------------  --------  ----------  --------- 
 Mineral 
  Resources 
-------------  ------------  --------  ----------  ------------  --------  ----------  --------- 
 Measured          0.029       5.45      157,679       0.029       5.45      157,679    Premier 
-------------  ------------  --------  ----------  ------------  --------  ----------  --------- 
 Indicated         0.076       6.31      479,936       0.076       6.31      479,936 
-------------  ------------  --------  ----------  ------------  --------  ----------  --------- 
 Inferred          1.220       4.61     5,619,877      1.220       4.61     5,619,877 
-------------  ------------  --------  ----------  ------------  --------  ----------  --------- 
 
 Total             1.325       4.72     6,257,493      1.325       4.72     6,257,493 
-------------  ------------  --------  ----------  ------------  --------  ----------  --------- 
 
 

Notes:

   1.   Premier is the operator of the RHA Tungsten Project ("RHA"). 

2. Premier holds a 49 per cent. interest in RHA. RHA is indebted to Premier in excess of US$20m and until such time as this is settled, all concentrate produced will be attributable to Premier.

   3.   Mineral Resources which are not Mineral Reserves have no demonstrated economic viability. 
   4.   The effective date of the Mineral Resource is 12 September 2017. 
   5.   Mineral Resources for RHA have been classified according to SAMREC. 
   6.   The Mineral Resource Estimate is based on information compiled by Mr Gerard Evans. 

7. The contained WO3 metal values are rounded, actual grades and contained metal kg are accurately stated and any differences in the total are due to rounding.

The Mineral Resources, set out above, from the underground operations represent an upgrade from the Mineral Resource Estimate as previously announced on 30 November 2016, and are contained within 100 meters of existing underground development that includes the equipped vertical 120-meter shaft and extensive drive and historic stoping areas providing direct access with little further development required to mine. The mineralisation is open along strike and at depth. The Mineral Resource upgrade is a result of continuing channel sampling of Lode 4 as well as a re-evaluation of Lode 2.

Open Pit Mineral Resource Review

The Company has engaged an independent advisor with extensive experience in preparing Mineral Resource and Reserve Statements to carry out an assessment of RHA's open pit Mineral Resource Estimate (as announced on 30 November 2016), as well as advising on optimisation of the parameters used in the Mineral Resource Estimation.

Competent Person Statement

The information in this announcement that relates to the Mineral Resource Estimate is based on information compiled by Gerard Evans, Resource Geologist for Premier African Minerals. Mr Evans has reviewed and confirmed the statements related to the Underground Mineral Resources set out herein. Gerard Evans has 27 years' experience in mining industry specialising in resource geology and holds a B.Sc Hons degree in geology from the University of the Witwatersrand. Mr Evans is a registered member of SACNASP (400015/08), GSSA and GASA.

Forward Looking Statements

Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identi ed 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 re ect 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.

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

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: +44 (0) 
  Jackson                            Limited               07544 275 882 
------------------------  ---------------------------  ----------------- 
 

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. The Company has acquired a 52 per cent controlling stake in Mozambique-based TCT Industrias Florestais Limitada, which owns a limestone deposit and forestry business located on rail in the Sofala Province of Mozambique. In addition, the Company holds 5,010,333 million shares in Circum, the owner 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 per cent interest in the 1.5 million ounce inferred resource Akyanga gold deposit in the DRC.

Glossary of Technical Terms

 
 "APT"                Abbreviation for Ammonia Paratungstate 
-------------------  ------------------------------------------------ 
 (Fe,Mn) WO(3)        chemical composition of wolframite 
-------------------  ------------------------------------------------ 
 "Indicated           that part of a Mineral Resource 
  Resource"            for which tonnage, densities, shape, 
                       physical characteristics, grade 
                       and mineral content can be estimated 
                       with a reasonable level of confidence. 
                       It is based on exploration, sampling 
                       and testing information gathered 
                       through appropriate techniques from 
                       locations such as outcrops, trenches, 
                       pits, workings and drill holes. 
                       The locations are too widely or 
                       inappropriately spaced to confirm 
                       geological and/or grade continuity 
                       but are spaced closely enough for 
                       continuity to be assumed 
-------------------  ------------------------------------------------ 
 "Inferred            that part of a Mineral Resource 
  Resource"            for which tonnage, grade and mineral 
                       content can be estimated with a 
                       low level of confidence. It is inferred 
                       from geological evidence and sampling 
                       and assumed but not verified geological 
                       and/or grade continuity. It is based 
                       on information gathered through 
                       appropriate techniques from locations 
                       such as outcrops, trenches, pits, 
                       workings and drill holes that may 
                       be limited or of uncertain quality 
                       and reliability 
-------------------  ------------------------------------------------ 
 "kg/t"               abbreviation for kilogramme per 
                       tonne 
-------------------  ------------------------------------------------ 
 "Measured            is that part of a mineral resource 
  Mineral Resource"    for which quantity, grade or quality, 
                       densities, shape, and physical characteristics 
                       are so well established that they 
                       can be estimated with confidence 
                       sufficient to allow the appropriate 
                       application of technical and economic 
                       parameters, to support production 
                       planning and evaluation of the economic 
                       viability of the deposit. The estimate 
                       is based on detailed and reliable 
                       exploration, sampling and testing 
                       information gathered through appropriate 
                       techniques from locations such as 
                       outcrops, trenches, pits, workings 
                       and drill holes that are spaced 
                       closely enough to confirm both geological 
                       and grade continuity 
-------------------  ------------------------------------------------ 
 "Mineral Resource"   concentration or occurrence of diamonds, 
                       natural solid inorganic material 
                       or natural fossilized 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 
-------------------  ------------------------------------------------ 
 "Mineralisation"     presence of a target mineral in 
                       a mass of host rock 
-------------------  ------------------------------------------------ 
 "MTU"                Abbreviation for metric tonne unit 
-------------------  ------------------------------------------------ 
 "SAMREC"             South African Code for Reporting 
                       of Mineral Resources and Mineral 
                       Reserves 
-------------------  ------------------------------------------------ 
 "Tungsten"           metallic element known also as wolfram 
                       with the chemical symbol W and atomic 
                       number 74 
-------------------  ------------------------------------------------ 
 "wolframite"         mineral name for iron-manganese 
                       tungstate; (Fe,Mn)WO(4,) an ore 
                       of tungsten. The ratio of iron to 
                       manganese varies; iron-rich wolframite 
                       is known as ferberite FeWO(4) , 
                       manganese-rich wolframite is known 
                       as hübnerite MnWO(4) 
-------------------  ------------------------------------------------ 
 "WO3"                tungsten oxide 
-------------------  ------------------------------------------------ 
 "XRT technology"     X-ray sorting technique where specific 
                       mineral (e.g. wolframite) bearing 
                       rock can be separated from specific 
                       mineral-poor rock and other impurities. 
                       This upgrades in metal terms the 
                       material feed to the plant energy 
                       and lowers the tonnage of rock requiring 
                       processing which results in substantially 
                       improved the economics for mineral 
                       processing operations. 
-------------------  ------------------------------------------------ 
 

ENDS

This information is provided by RNS

The company news service from the London Stock Exchange

END

UPDEAENLFSDXEAF

(END) Dow Jones Newswires

September 15, 2017 02:00 ET (06:00 GMT)