Name of the Project
Zulu lithium/tantalum project.

Location
Zimbabwe.

Project Owner/s
Premier African Minerals.

Project Description
A scoping study on the Zulu project in 2017 evaluated the economics of developing an openpit mine and processing facility to directly produce spodumene and petalite concentrate.

The scoping study identified a target production of 84 000 t/y of spodumene concentrate and 32 500 t/y of petalite concentrate for an initial 15-year life-of-mine. 

The 2021 updated scoping study is based on preliminary technical and economic assessments. 

The updated scoping study has modelled three scenarios for different spodumene concentrate sales prices to illustrate the impact of the recent significant increase in prices of spodumene and petatlite. No further changes have been made to the underlying economic, technical, engineering or processing assumptions used in the scoping study, the resources or the mine plan.

Overall, the improvement in spodumene pricing and, therefore, the revenue factors, have a significant positive improvement in the economic results despite the escalated capital and operating costs.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a net present value (NPV), at a 10% discount rate, of $127-million in the 2017 scoping study and an internal rate of return (IRR) of 85.9%, with a payback of two years, based on prices of $800/t spodumene and $400/t petalite concentrate.

In the 2021 scoping study, the project has an NPV, at a 10% discount rate of, $207-million, $292-million and $377-million, based on spodumene concentrate prices of $1 000/t, $1 150/t and $1 300/t respectively, and petalite prices of $400/t.

In the 2021 scoping study, the project has apretax internal rate of return of 112.4%,144.3% and 176%, based on spodumene concentrate prices of $1 000/t, $1 150/t and $1 300/t respectively, and petalite prices of $400/t

Capital Expenditure
The project has a total capital cost of $69.3-million in the 2021 scoping study, compared with $64-million in the 2017 scoping study. The project will require peak finding of $42-million in the 2021 scoping study, compared with $38-million in the 2017 scoping study.

Planned Start/End Date
Not stated.

Latest Developments
Premier has already embarked on a definitive feasibility study at Zulu, with drilling well under way with two rigs currently operating, and preliminary work continuing to support the findings set out in the scoping study.

The company plans to raise £1-million, before expenses, through a share placement to help fund the DFS.

Plans for a third rig and general work on the DFS are under way. Premier CEO George Roach has said that it is time to direct more effort and resources into the rest of the exclusive prospecting order (EPO) of 205 km².

Exploration teams have been appointed, while airborne geophysics and other remote sensing services have also been commissioned.

Premier has high expectations for additional lithium, caesium and tantalum pegmatite discovery and other potential in respect of the Fort Rixon greenstone belt that intrudes into parts of the EPO area.

The EPO area includes known gold mineralisation and historic reports of producing gold mines.

Key Contracts, Suppliers and Consultants
Bara Consulting (2017 scoping study and scoping study financial matrix review).

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