Name and Location
RHA tungsten project, Zimbabwe.

Client
Premier African Minerals.

Premier will manage the project and the operating subsidiary will be responsible for development costs.

Project Description
The RHA tungsten project, located in the prospective Kamativi tin belt, in north-west Zimbabwe, has an inferred South African Mineral Resource Committee-compliant resource of 1.09-million tonnes at a diluted grade of 8.7 kg/t of tungsten trioxide (WO₃) and an indicated resource of 147 000 t at a diluted grade of 4.7 kg/t WO₃ in Lode 2A.

A preliminary economic assessment (PEA) and concept mining study has confirmed the economic potential of Lode 2A supporting a tungsten mining operation, with an ore production rate of 192 000 t/y over a six-year life-of-mine.

The mining study proposes mining Lode 2A initially from an openpit, extending to about 40 m below surface, followed by underground mining, comprising mechanised continuous retreat long-hole open stoping with pillars, to about 200 m below surface and over a strike length of 300 m.

It is proposed to employ contractors for the openpit and underground mining phases.

Processing will be mainly through gravity separation following manual waste sorting ahead of the mill. A processing recovery of 85% was used for the mining study.

The project shows strong promise to be expanded in the future, as further exploration is conducted on the known remaining mineralised lodes described in the PEA and the mining study.

Value
The mining study indicates a capital cost, inclusive of a 20% contingency, of $13.5-million.

Duration
Production development is expected to start in 2014.

Processing plant construction is expected to take about nine months and will include a flotation circuit for copper concentrate recovery.

Latest Developments
Additional technical study work at the RHA project has extended the proposed openpit mine life and further enhanced the robust economics of restarting low-cost mining activities at the project in late 2014.

A Whittle computer design optimisation completed on the proposed openpit at RHA indicates a revised lower stripping ratio of 6.2:1, compared with 10:1 of the initial mining study, and an optimal openpit life of about 16 months, compared with the 12 months previously estimated.

In line with these results, Premier is in discussions with potential funders for the project and possible offtake partners as a possible way of fast-tracking RHA towards production in the near-term, with a target production of late 2014.

The company aims to start openpit production development in late 2014, with underground mining development to begin thereafter to fulfil the project’s projected six-year life-of-mine.

Key Contracts and Suppliers
Royal Haskoning DHV (concept mining study).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Premier African Minerals, tel +44 7796 263999.
Royal Haskoning DHV, tel +263 4 79 7108/9.