28th Jan 2015 08:40
LONDON (Alliance News) - Premier African Minerals Ltd rose on Wednesday after the company said the implementation study for the RHA Tungsten project in Zimbabwe has been completed, with the strong project economics backed by the findings.
The final report reduces the pre-production capital to USD4.15 million, with the operating cost down to USD89.1 per metric tonne unit of tungsten.
The project schedule has been maintained, with first production from the project targeted for June 2015, and the company said the report confirms the robust project economics.
"The implementation study confirms our strategy for RHA and supports our conclusions that the open pit is projected to generate sufficient surplus cash to allow both commencement of repayment of loans made to RHA by Premier, and to finance the build of the underground operations," said Premier African Chief Executive Officer George Roach.
Shares in Premier African were up 2.6% to 1.00 pence on Wednesday morning, having jumped to 1.14p at the open, one of the AIM All-Share's best performers.
By Sam Unsted; [email protected]; @SamUAtAlliance
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