Premier African Minerals Limited Interim update Zulu Lithium Project (3915O)

TIDMPREM

RNS Number : 3915O

Premier African Minerals Limited

13 June 2022

13 June 2022

Premier African Minerals Limited

Premier African Minerals Limited ("Premier" or the "Company"), is pleased to provide this interim update regarding progress and potential alternative proposal for early production at Premier's Zulu Lithium and Tantalum Project ("Zulu").

George Roach, CEO commented ," Since acceptance of the subscription by Suzhou TA&A Ultra Clean Technology Co., Ltd ("Suzhou TA&A") set out in our RNS in March this year, and pursuant to receipt of results from initial phases of test work undertaken on ore sorting by Anzaplan in association with Stark, it is clear that a potential opportunity exists for Zulu to be brought into early production based on a large-scale pilot plant using ore sorting technology to concentrate spodumene rich ore from other lithium minerals and gangue material before milling and floatation to produce a spodumene concentrate only and stock pile both a tantalum-rich fraction and petalite for future processing. Based on this plan, it is possible that such a plant could be in production in Q1 2023, funded under an interest free prepurchase payment for spodumene concentrate to be supplied. Shareholders should note that no funding has yet been arranged for this possible pilot plant and amongst many aspects of this whole concept still under scrutiny, this will still require completion.

It is worth noting that the current demand for spodumene and the resultant prices, significantly de-risk this concept and support Premier's recent focus in terms of both our drilling programme at Zulu that is now exclusively targeting high grade spodumene zones within the ore body at an indicated resource level, and on aspects of the DFS in relation to implementation of the pilot plant. Importantly, operation of the pilot plant will fine tune aspects of the process that will support the DFS. Further details will be provided in due course along with details of any finance arrangements, together with illustrative valuation and revenue projections for the pilot plant.

To date a total of 18,000 meters has been drilled at Zulu, and after a complete revision of QA/QC procedures and all aspects of sample preparation and analysis, assay testing and results are now continuing and the Company will publish highlights and significant assay results in due course when these are available.

In closing, I remind shareholders that Premier is potentially following an accelerated programme of early production to exploit the current opportunity. There are identified risks and abatements inherent in this to a greater extent than may be the case following a fully developed DFS. However, the potential immediate availability of prepurchase payment and existing Spodumene price and demand are important and strong motivators in potentially pursuing this option".

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.

MAR

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018.

The person who arranged the release of this announcement on behalf of the Company was George Roach.

Enquiries

 
 George Roach                        Premier African Minerals Limited    Tel: [phone] 
 Michael Cornish / Roland Cornish        Beaumont Cornish Limited        Tel: [phone] 
                                            (Nominated Adviser) 
                                   -----------------------------------  -------------------------- 
 John More/Toby Gibbs               Shore Capital Stockbrokers Limited   Tel: [phone] 
 Matthew Bonner                              EAS Advisors LLC            Tel: [phone] 
                                   -----------------------------------  -------------------------- 
 

Glossary of Technical Terms

 
 "DFS"     Definitive Feasibility Study. 
 "QA/QC"   Quality Assurance/Quality Control. 
 

Notes to Editors

Premier African Minerals Limited (AIM: PREM) is a multi-commodity mining and natural resource development company focused on Southern Africa with its RHA Tungsten and Zulu Lithium projects in Zimbabwe.

The Company has a diverse portfolio of projects, which include tungsten, rare earth elements, lithium and tantalum in Zimbabwe and lithium and gold in Mozambique, encompassing brownfield projects with near-term production potential to grass-roots exploration. The Company has accepted a share offer by Vortex Limited ("Vortex") for the exchange of Premier's entire 4.8% interest in Circum Minerals Limited ("Circum"), the owners of the Danakil Potash Project in Ethiopia, for a 13.1% interest in the enlarged share capital of Vortex. Vortex has an interest of 36.7% in Circum.

In addition, the Company holds a 19% interest in MN Holdings Limited, the operator of the Otjozondu Manganese Mining Project in Namibia.

Ends

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June 13, 2022 02:00 ET (06:00 GMT)