Name and Location
RHA tungsten project, Zimbabwe.

Client
Premier African Minerals holds 49% of RHA Tungsten, with the remaining 51% held by Zimbabwe’s National Indigenisation and Economic Empowerment Fund.

Project Description
The preliminary economic assessment (PEA) on the project was completed in August 2013. The mine plan presented in the PEA consists of an openpit, followed by an underground operation, with a combined life-of-mine (LoM) of six years at a run-of-mine production rate of 192 000 t/y, or 16 000 t/m.

Premier Mining has since commissioned Bara Consulting to update the financial model for the project to demonstrate the effect of the additional work that has been completed since the publication of the PEA on the product valuation. The financial model outlines a low-capital implementation strategy.

Net Present Value/Internal Rate of Return
Bara’s financial model reflects a pretax net present value of $15.8-million and an annualised internal rate of return of 286%, calculated on a quarterly basis.

Value
The project preproduction capital has been reduced from $4.77-million to $4.15-million.

Duration
Production is expected to start in June 2015.

Latest Developments
Premier continues to make progress on the development of its 49%-owned RHA tungsten project, in Zimbabwe, with earthworks 10% complete and the development of the openpit mining area on schedule.

The openpit perimeter has been pegged out and bush clearing has started.

The fabrication of the process plant is on schedule to be transported in May to the mine from Johannesburg. The mechanical equipment, including the mill, is being shipped to the plant assembly workshop also in Johannesburg, where assembly of the various components are under way.

The mill is expected to arrive in Durban in mid-April, while the contracts for transport and on-site erection are being finalised.

To date, the group has paid $1.46-million as a deposit for the process plant, which represents about 70% of the total cost of the plant. A final $664 000 payment is due once fabrication of the plant is completed.

Key Contracts and Suppliers
Bara Consulting (updated financial model).

On Budget and on Time?
The development of infrastructure is behind schedule, owing to orders being placed five days behind schedule.

“Current focus is on expediting these orders to pull the schedule back through early delivery,” Premier has noted.

First production from the mine is scheduled for June this year.

Contact Details for Project Information
Premier African Minerals, tel +27 100 201 281 or email info@premierafricanminerals.com.