27th Jan 2016 09:06
LONDON (Alliance News) - Premier Afrian Minerals PLC Wednesday said the results of the resource review conducted at the RHA tungsten project in Zimbabwe is "encouraging" and said the already-producing mine should become profitable in spring.
The miner, which holds a 49% interest in the project, said the key points from the review include a "significant increase" in the mining inventory and the tonnage of contained tungsten within the pit boundary.
The review also confirmed the previously reported depth and on strike continuity outside the pit boundary.
"This re-examination and recompilation of the resource data base is designed to complement test work utilising XRT technology for upgrading of ore in pit. The result of this resource review is encouraging and will support bulk mining and in pit upgrading," said Chief Executive George Roach.
The resource review will lead to an updated mineral resource estimate inclusive of underground and additional structures that were not previously included in the resource estimate, it said.
Because the new resource estimate will include the underground element of the mine, Premier African said "a direct comparison to the previous resource statement is not relevant."
"A combination of underground and open pit operations with pre-plant feed ore upgrading has the promise of significantly improved throughput and reduced direct operating costs," said the company.
Premier African said it is progressing the installation of the equipment for the main shaft at the mine, and predicts profitability from the project from spring this year.
Premier African Minerals shares were up 3.7% to 0.389 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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