5th Sep 2014 07:42
LONDON (Alliance News) - Shares in Premier African Minerals Ltd had a volatile morning Friday after the company said it has adopted a phased implementation strategy of work programmes at the RHA Tungsten project in Zimbabwe, with production targeted for the first half of 2015 and the estimate of potential early revenue from the site at up to GBP7.3 million.
Shares in the group were down 14% to 1.31 pence in early trade, making them the second biggest faller on AIM. Just after the open, they briefly had topped AIM risers, rising 8%. The stock's 52-week range is 0.50p to 1.97p.
The Western and Southern Africa-focused resources company said it has started an implementation strategy at the RHA Tungsten project consisting of four work programmes.
They involve trade-off studies which will evaluate Premier's options regarding mining, power supply, water supply, tailings facility, and the general layout of the project; an early works programme; an old mine phase which will take advantage of the existing infrastructure to fast-track early production; and a new mine phase which will focus on the previously reported code compliant resource.
The company said it is targeting first production from the site in the first half of 2015 and said its estimate on the potential early revenue for the site is between USD4.6 million and USD7.3 million.
"The focus for Premier is the achievement of specific design and operational objectives, to get to production at RHA by the first half of 2015," said Premier Chief Executive George Roach.
"On the one hand, the decision to focus on this phased approach has partly contributed to a delay in the update of the original concept study on the New Mine, whilst on the other, the New Mine will benefit significantly from the detail work now being done on the Old Mine phase and will be at a substantially higher level of confidence than the conceptual nature of the original study," Roach added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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