LONDON — Premier African Minerals on Tuesday said dewatering of old mine workings on its RHA Tungsten project in the Kamativi tin belt in Matabeleland North has commenced, following the granting of a discharge permit.
“As soon as the old mine is dewatered, it will be made safe and accessed to allow confirmatory work on historic non-compliant ore reserves to commence, whilst surface work traces the full strike length of the lode one and two ore body that will be the initial open pit target,” chief executive George Roach said in a statement.
The multi-commodity natural resource company with mineral projects located in southern and western Africa, also said that a preliminary draft of the updated preliminary economic assessment had been received, and is currently under review for release during October.
“The preliminary draft confirms management’s confidence in the project and compliments our decision to proceed to early production on a low capital cost basis immediately,” Roach said.
Premier African Minerals shares closed down 4,1% Tuesday at 1,29 pence. In May, Premier African Minerals said it had negotiated an interest-free $2,5 million bridge loan from Circum Minerals Ltd, which would allow it to exercise its option to acquire AgriMinco Corp’s interest in a Danakil Potash project.
Premier African Minerals holds a 42% interest in AgriMinco, which has a 30% stake in the Danakil project. Circum Minerals holds the other 70% stake. The company said the loan would also help it to speed up its tungsten project in Kamativi.
On March 20, Premier said it entered into an option agreement with AgriMinco Corp, whereby AgriMinco granted Premier the exclusive option to purchase 100% of the shares of Mandalore Developments Ltd, AgriMinco’s wholly-owned subsidiary that holds its stake in the Danakil Potash project.
At the time Roach said: “The transaction will significantly assist Premier in advancing its Zimbabwe projects, in particular bringing RHA Tungsten closer to production.”
— Alliance News