Name of the Project
Zulu lithium/tantalum project.

Location
Fort Rixon, Zimbabwe.

Project Owner/s
Premier African Minerals.

Project Description
A scoping study 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 petalite. 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 resulted in 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 a pretax IRR 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 funding 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 African Minerals, which is conducting a definitive feasibility study (DFS) on its Zulu lithium and tantalum project, has accepted a subscription of £12-million before expenses from Suzhou TA&A Ultra Clean Technology. The amount is sufficient to fully fund completion of the DFS and the additional resource work that is under way.

CEO George Roach has told Mining Weekly that, owing to this subscription, the company is now fully funded and, at this time, sees no need to return to the capital market for any further funding.

The new investor is also the majority owner of Yibin Tianyi Lithium, a major and expanding producer of lithium hydroxide.

The subscription also provides assured take-off for whatever spodumene concentrate the Zulu project will produce.

Outlining the rationale for Suzhou’s investment, Roach has explained that Suzhou wanted to secure access to spodumene concentrate in sufficient quantities to enable its subsidiary to expand its production threefold or more.

With funding now received, Premier can accelerate the DFS and add further optimisation that has not necessarily been budgeted for originally, Roach has said.

Premier is advanced in terms of metallurgical testing and plant design, and expects preliminary results for the DFS before the end of 2022.

Roach has said the original Zulu claims have been incorporated into an exclusive prospecting order that constitutes 20 000 ha that covers projected on-strike extensions and at depth.

Premier has agreed to an exclusive negotiation period with Suzhou to determine  mine construction, the financing thereof, potential further processing in Zimbabwe and how to best deal with the 50% of the offtake that is not at this time committed to Suzhou.

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

Contact Details for Project Information
Premier African Minerals, tel +27 100 201281 or email info@premierafricanminerals.com.