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Premier African Minerals completes conceptual mine plan for Zimbabwe project
StockMarketWire.com
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Premier African Minerals has completed a new conceptual underground mine plan for a project in Zimbabwe.
The plan has been based on a revised RHA underground mineral resource estimate relating to the parts of the ore body included within the conceptual mine plan.
The objective of the plan is to assess the potential impact of returning RHA to production and assess whether RHA can generate a return on Premier's investment to date in surface infrastructure, plant and equipment at RHA at minimal additional capital costs, based on using just the existing vertical access shaft (the previous study had included the construction of a new high-capacity decline shaft) .
The plan assesses an underground production rate of 6,000 tons per month with a projected life of mine of 10 years and indicates a peak funding requirement of $2.5 million and a payback within 16 months. As Premier has resolved not to commit further funding to RHA, the new funding would need to be provided by a third party.
CEO Geroge Roach said: We are pleased to be able to provide a preliminary update on the process test work and analysis of bringing RHA back to production based on that part of the underground mineral resources which we believe can be cost effectively included in the mine plan at the current proposed 6,000 ton per month.
The next steps for RHA include negotiations with our 51% shareholder, NIEEF, to explore alternatives to bring this mine back to production. It is worth noting that there remains continued interest from off-take partners in RHA supported by the current APT price.
Premier's historic commitment to RHA needs to be matched by NIEEF or another funding option will need to be sourced given there will be no further financial commitment from Premier apart from the basic care and maintenance costs.
At 2:17pm: (LON:PREM) Premier African Minerals share price was 0p at 0.04p
Story provided by StockMarketWire.com
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