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
The fabrication of the process plant Premier’s 49%-owned RHA tungsten project is expected to be completed by the end of May.

The majority of the plant components have been delivered to Appropriate Process Technologies (APT), in Johannesburg, with the cone crusher the main component yet to be delivered.

Detailed planning is also under way for the transportation of the components from APT by the end of May.

Meanwhile, earthworks and civil works are currently on the "critical path” and are scheduled for completion by mid-May, while infrastructure development, including power and water supply and reticulation, is also under way, with 50% of the piping completed.

The generators will be ready for shipping in early May and construction of the buildings has also started.

Development of the openpit mining area is, meanwhile, on schedule, with waste stripping under way and the first run-of-mine ore stockpiled. Mine planning and grade control procedures are being finalised before production.

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.