eBusiness Weekly
Oliver Kazunga
PREMIER African Minerals has announced a potential alternative proposal for early production at its Zulu lithium and tantalum project in Matabeleland South province in the first quarter next year.
The AIM-listed mining group, which is developing the Zulu lithium and tantalum project in Insiza District, last February reported new intersections of lithium and tantalum.
In a recent interim update, Premier chief executive officer George Roach, said based on a large-scale pilot plant using ore-sorting technology to concentrate spodumene-rich ore from other lithium minerals, it was now conspicuous that a potential opportunity exists for the Insiza project to come into early production.
“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,” he said.
“Based on this plan, it is possible that such a plant could be in production in Q1 2023, funded under an interest free pre-purchase 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.”
Roach said it was worth noting that the present demand for spodumene and the resultant prices, significantly de-risk this concept and support Premier’s recent focus.
This is in terms of both Premier’s 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 Definitive Feasibility Study (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 (quality control/quality assurance) 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,” said Roach.
He said his organisation was potentially following an accelerated programme of early production to exploit the existing.
“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 pre-purchase payment and existing spodumene price and demand are important and strong motivators in potentially pursuing this option,” said Roach.
