Name and Location
RHA tungsten project, Zimbabwe.

Client
Premier African Minerals holds 49% of RHA Tungsten, with the remaining 51% held by Zimbabwe’s National Indigenisation and Economic Empowerment Fund.

Project Description
The preliminary economic assessment (PEA) on the project was completed in August 2013. The mine plan presented in the PEA consists of an openpit, followed by an underground operation, with a combined life-of-mine (LoM) of six years at a run-of-mine production rate of 192 000 t/y, or 16 000 t/m.

Premier Mining has since commissioned Bara Consulting to update the financial model of the project to demonstrate the effect of the additional work that has been completed since the publication of the PEA on the product valuation. The financial model outlines a low-capital implementation strategy.

Net Present Value/Internal Rate of Return
Bara’s financial model reflects a pretax net present value of $15.8-million and an annualised internal rate of return of 286%, calculated on a quarterly basis.

Value
The project preproduction capital has been reduced from $4.77-million to $4.15-million.

Duration
Commissioning of operations is expected this year.

Latest Developments
Premier African Minerals expects first ore to surface from its RHA tungsten mine this month, as the re-equipping of the 120 m vertical shaft nears completion.

“Re-equipping the 120 m existing vertical shaft at RHA has taken a little more time than was originally expected, but with all equipment now on site and power reticulation installed, this project is nearing completion and ore will arrive at surface in April,” CEO George Roach has said.

Premier African Minerals expects positive operational cash flow from RHA when first ore from 870 level is processed and the crushing circuit upgrades have been installed.

“I am pleased to report that Premier has dramatically reduced fixed expenditure at RHA and we remain confident that, as and when 870 level ore is processed at the grades indicated, and throughput and recovery meet design criteria, RHA will operate profitably,” he has noted.

The crushing circuit upgrade will take less than two weeks to install and commission once all components are on site at RHA.

Key Contracts and Suppliers
Bara Consulting (updated financial model).

On Budget and on Time?
Not stated.

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