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 of 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
Commissioning of operations is expected this year.

Latest Developments
Premier African Minerals has re-equipped the 120 m vertical shaft at its RHA tungsten project and expects to return to operations shortly.

Mining equipment and minerals processing specialist Appropriate Process Technologies (APT) will complete upgrades at the plant by July 6. APT has confirmed that the necessary equipment has been ordered.

Premier CEO George Roach has indicated that, in light of the delay in installing the crushing circuit improvements, it is important to process ore from the 870 level of the project to establish that in situ grade is delivered to the plant and that mining dilution is adequately managed.  

"X-ray technology testwork is progressing on openpit ore. This work is expected to yield favourable results and we look to receive a proposal to upgrade ore and recommend resumption of mining from the openpit,” he has said.  
 
Key Contracts and Suppliers
Bara Consulting (updated financial model).

On Budget and on Time?
Not stated.

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