Premier African Minerals Limited Zulu Drilling Update (0257Z)

TIDMPREM

RNS Number : 0257Z

Premier African Minerals Limited

12 December 2017

12 December 2017

Premier African Minerals Limited

Zulu Drilling Update

Up to 4.24% Li(2) O in Spodumene at Zulu

Premier African Minerals Limited ("Premier" or the "Company") is pleased to announce further assay results from the Company's Zulu Lithium Project near Fort Rixon in Zimbabwe ("Zulu").

The focus of the current drilling programme is to upgrade and expand the Resources in the Main Zone, where the Company has declared a Maiden Mineral Resource Estimate of 20.1 million tonnes grading 1.06% Li O, and to convert the exploration targets in both the Main Zone and step-out zones to code compliant status.

Highlights:

-- Hole ZDD-45, located in the step-out zone, 220m south-east of the Main Zone, intersected 68m of mineralised pegmatite from 101 meters down hole. Assay results from the first 38.84m analysed contains an average grade of 1.55% Li(2) O in multiple intersections, including:

Ø 8.22m at 1.96% Li(2) O from 101.24m

Ø 3.53m at 1.06% Li(2) O from 111.70m

Ø 1.20m at 2.08% Li(2) O from 124.40m

Ø 11.47m at 1.90% Li(2) O from 126.77m

-- Including 0.95m at 4.24% Li(2) O

Ø 8.48m at 1.25% Li(2) O from 138.96m

   --     Results are still pending for a further 30m of intersected pegmatites in this drill hole 

George Roach, Premier's CEO, commented: "The mineralisation and assay results from this hole are spectacular. Not often is a grade of 4.24% Li(2) O seen in drill core. Together with other known results previously reported, this supports our declared exploration target of 60 to 80 million tonne in the step-out zone. With true widths at approximately two thirds of the drilled width, Zulu is now justifying our belief that this is a tier 1 asset. Results such as these strongly underwrite our recently released scoping study and fully support our confidence in this world-class deposit. At the same time, we are encouraged by the changing environment in Zimbabwe, particularly that under new proposals related to Lithium mining, we will be encouraged to develop to Lithium Carbonate production and may retain sole ownership of the entire project."

Drilling at Zulu:

The Company has now completed a further 24 drill holes, equivalent to 3,638.54m since completion of the initial 2,500m drilling programme that resulted in the Maiden Inferred Mineral Resource Estimate at Zulu of 20.1 million tonnes grading 1.06% Li O (as announced on 6 June 2017). The current drilling programme is focussed on expanding as well as upgrading the resources in the Main Zone, and, to delineate further the Li mineralisation in the new south-eastern zone. All of the 24 new drill holes have intersected mineralisation with ZDD-45 having the best intersections so far. ZDD-45 was drilled on an apparent triple junction of step-out zones SO1, SO2 and the Main Zone. The intersected pegmatites are predominantly spodumene rich, petalite and lepidolite are scarce. The table below sets out the intersections from bore hole ZDD-45.

Table 1. Recent Drill Intercepts of ZDD-45 (azimuth: N237, dip: -60deg, total length: 277.53m)

 
                                Interval 
   Drill       From              length      Li(2)         Comments 
    hole        (m)    To (m)     (m)*       O (%) 
-----------  -------  -------  ---------  --------  -------------------- 
                                                     Incl. 2.96m @ 2.81% 
                                                                 Li(2) O 
                                                       and 1.96m @ 2.90% 
 ZDD-45       101.24   109.46       8.22      1.96               Li(2) O 
-----------  -------  -------  ---------  --------  -------------------- 
                                                      Incl. 1.60 @ 1.74% 
 including    111.70   115.23       3.53      1.06               Li(2) O 
-----------  -------  -------  ---------  --------  -------------------- 
                                                     Incl. 2.40m @ 1.73% 
 including    117.18   123.12       5.94      0.94               Li(2) O 
-----------  -------  -------  ---------  --------  -------------------- 
 including    124.40   125.60       1.20      2.08 
-----------  -------  -------  ---------  --------  -------------------- 
                                                     Incl. 0.95m @ 4.24% 
                                                                 Li(2) O 
                                                       and 1.17m @ 3.64% 
 including    126.77   138.24      11.47      1.90               Li(2) O 
-----------  -------  -------  ---------  --------  -------------------- 
                                                     Incl. 1.68m @ 2.35% 
                                                                 Li(2) O 
                                                       and 2.00m @ 1.74% 
 including    138.96   147.44       8.48      1.25               Li(2) O 
-----------  -------  -------  ---------  --------  -------------------- 
 

*: drilled widths

Photos of the drill core are available on the Company's website or via the link below.

http://www.premierafricanminerals.com/investors/gallery/2017

Director's Loan conversion

On 15 September 2015, George Roach provided a US$300,000 loan ("Loan") direct to Premier for the use at RHA Tungsten (Pty) Limited ("RHA"). The Loan with any accrued interest will become payable by Premier as soon as all other third-party indebtedness has been repaid in full or with the prior consent of all third-party lenders. The Loan is unsecured and accrues interest at a rate of LIBOR plus 3%. As of 6 December 2017, the loan and accrued interest totalled US$315,096. The Loan can also be converted at any time into new ordinary shares at a price of 0.5p per new ordinary share (as further announced on 28 March 2017). On 11 December 2017, George Roach indicated to the Board that he may wish to partially convert up to US$100,000 of the Loan into new ordinary Premier shares. A further announcement will be made in due course.

Qualified Person:

Wolfgang Hampel, Senior Geologist with Premier African Minerals Limited, has reviewed and approved this release to the extent that reference is made to the Zulu Lithium Project. Mr Hampel has 26 years' experience in the African, American, European and Asian exploration and mining industry and holds a Diploma in Economic Geology (Dipl.-Geol.) from the Technical University of Munich. He is a registered European Geologist (EurGeol). ndeg 1261 with the European Federation of Geologists.

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. In addition, the Company holds 5,010,333 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 ounce inferred resource Akyanga gold deposit in the DRC.

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.

Glossary of Technical Terms:

 
 "Li2O"         means Lithium oxide 
-------------  --------------------------------------- 
 "lepidolite"   is the mineral name for lithium 
                 bearing mica KLi2Al(Si4O10)(F,OH)2 
                 an important ore of lithium 
-------------  --------------------------------------- 
 "pegmatite"    is an exceptionally coarse-grained 
                 igneous rock, with interlocking 
                 crystals, usually found as irregular 
                 dikes, lenses, or veins, esp. 
                 at the margins of granitic intrusions 
-------------  --------------------------------------- 
 "petalite"     " is the mineral name for lithium 
                 aluminium silicate LiAl(Si4O10) 
                 an important ore of lithium 
-------------  --------------------------------------- 
 "spodumene"    is the mineral name for lithium 
                 aluminium silicate LiAlSi2O6 
                 an important ore of lithium 
-------------  --------------------------------------- 
 

ENDS

This information is provided by RNS

The company news service from the London Stock Exchange

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December 12, 2017 02:01 ET (07:01 GMT)