A phased implementation strategy, comprising four work programmes, has been adopted by London-listed Premier African Minerals to develop its RHA tungsten project, in Zimbabwe.

Several contractors have been appointed to deliver the new strategy, which included trade-off studies, an early works programme, an implementation study on the old mine phase and the implementation and design study on the new mine phase.

The multicommodity natural resources company said the trade-off studies, which had already started, would evaluate options for mine access, mining rate, mining width, power and water supply, tailings facility and the general layout.

The trade-off studies would support the detailed design of the old and new mine phases, which had been commissioned and would be completed by mid-September.

Premier noted that the old mine phase took “full advantage” of the existing infrastructure and historic development to fast-track to early production from the previously developed underground resource, while the new mine phase would focus on the previously reported code-compliant resource.
“The new mine phase will benefit substantially from the detailed design work completed for the old mine phase and this will allow a seamless transition from the old to the new mine phase,” it stated.

Premier had developed and initiated the early works programme, which included the dewatering of the old mine, the rehabilitation of the underground workings, the establishment of a working camp to accommodate construction teams, the upgrade of a 25 km gravel access road, and the identification and development of a ground water source.

While the decision to focus on the phased approach partly contributed to a delay in the update of the original new mine concept study, the new mine was expected to benefit significantly from the detailed work now being done on the old mine phase, explained Premier CEO George Roach.

“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,” he added.

The company appointed Peacocke and Simpson to design, manufacture and supply the plant, with the provided preliminary design and quotation under review.

CAE Mining had been engaged to estimate the old mine resource based on previously reported noncompliant historic underground developed reserves.

“This resource estimate will be upgraded to a code-compliant resource as soon as access has been established underground and confirmation channel sampling has been performed,” Roach commented.

Senet Engineering would provide infrastructure and other support facilities for the early works and would, in due course, be commissioned to undertake the detailed design of the old mine phase, while Bara Consulting would provide the old and new mine implementation designs.

The dewatering and the reopening of the old mine workings were the responsibility of Whaleside Shaft Sinking, with discussions under way around shaft equipping and the mining contract for the old mine phase.

Discussions were under way for J R Goddard Contracting, after completing site visits, to provide access road upgrades, general construction and earthworks.

Also, following site visits, Fraser Alexander was tasked with the provision of tailings design and construction.

Bumira Environmental Consultancy would complete the environmental- and social-impact assessments.

POTENTIAL REVENUE
Premier expected early revenue streams of between $4.6-million and $7.3-million and a possible reduction in the overall $2-million peak funding requirement set out in the original mining study.

“This revenue may originate from the reprocessing of existing tailings of approximately 60 000 t, grading at 2.2 kg to 2.8 kg per tonne of tungsten trioxide and the mining and processing of historically developed underground noncompliant reserves of 100 000 t, grading at 0.75% tungsten oxide,” Roach noted.

The potential revenue for 2015 from tailings was estimated at $2.7-million and from the underground mineralisation at $4.6-million.

The processing of tailings would start in April 2015 and old mine production in July 2015.

The reprocessing of tailings remained subject to the completion of current metallurgical studies, while the mining and processing of the noncompliant historic reserve was subject to upgrading to a code-compliant reserve, besides others.

WEST AFRICA EXIT
Meanwhile, a review of Premier’s exploration activities in Zimbabwe and in West Africa continued, with negotiations under way that would see the disposal of the company’s West African properties.

“Premier will have no further financing obligations in regard to those properties and will focus on our Zimbabwe operations. A strategic review of our exploration activities in Zimbabwe culminated in a decision to focus on tantalum and lithium at Zulu Pegmatite, fluorspar at Tinde, graphite at our Globe deposits and other possible acquisitions,” Roach concluded.