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 that contractors be employed 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
Premier has entered into a nonbinding memorandum of understanding (MoU) with an offtake partner, which will acquire tungsten from Premier’s RHA tungsten project.

The MoU outlines the basis of cooperation between the parties to negotiate detailed terms and conditions of an offtake agreement for a portion of tungsten concentrate or other tungsten material from RHA for a minimum period yet to be defined, subject to price and product specifications.

The MoU will remain in effect for two months and the parties are working to finalise the offtake agreement.

Meanwhile, additional drilling of Lode 2A of the RHA project, as recommended in the PEA has started and is expected to be completed by the end of December.

To date, three of the planned 13 holes have been completed, geological logging is proceeding in preparation for cutting and sampling of the mineralised intersections. Quartz veins, with visible tungsten mineralisation in the form of coarse-grained wolframite, had been intersected in all three holes, with logging indicating a correlation with previously identified and assayed mineralisation intersected in previous drilling.

SGS South Africa has also been commissioned to undertake mineralogical and metallurgical testwork on the drill samples obtained from Lode 2A. This work will be used to refine the metallurgical design and to further the finalisation of the offtake agreement.

The objective of the current drilling at RHA is to upgrade the quantity and the quality of the code-compliant resource from inferred and indicated to indicated and measured. Premier continues to assess financing alternatives for the construction of the project.

Premier also intended to exercise an option, in early 2014 to acquire the remaining 40 RHA mineral claim blocks it does not own and is in negotiations to acquire additional tungsten deposits in Zimbabwe.

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.