JOHANNESBURG (miningweekly.com) – Production at the RHA tungsten mine could start early next year should multicommodity natural resources company Premier African Minerals adopt the alternative near-term, low-cost production alternatives it was currently reviewing.

The Aim-quoted group’s alternative production plan, currently under review, contemplated the immediate start of mining at the Zimbabwe-based operations using the existing underground development and shaft system. The plan would include the construction of a processing plant at the historic site.

The plant and flow sheet was expected to be similar in design and capacity to that outlined in the original mine study, which suggested an initial openpit approach and then development of a decline for future underground mining.

“If the alternative mining approach is adopted, production could commence from as soon as the early part of next year at a reduced mining rate, with expansion taking place progressively thereafter.

“The alternatives under review anticipate that Premier would finance this without the need to raise further equity,” said CEO George Roach, noting that the recent completion of the Circum Minerals/AgriMinco transactions also boosted funding capacity.

In May, Premier acquired Mandalore Development, which held a 30% stake in the Danakil potash project, in Ethiopia, from AgriMinco for C$4.3-million.

It then sold its stake in Mandalore to Danakil project codeveloper Circum.

Premier was immediately paid $2.5-million and would be issued two-million shares in Circum, valued at $1.4-million. It would also receive further payments of $1-million in July, September, November and January.

Meanwhile, Premier noted that the initial mineralogical and metallurgical studies on which the RHA project’s mining study update was based had been completed and had indicated a high-grade concentration and anticipated recoveries of 88%.

The updated mining study, which would reassess the project potential in light of additional information, was expected to be completed by August.

The mining study update would include updated geology and mineral resources data, including resources in the measured, indicated and inferred categories; an evaluation of the geotechnical environment at the property; and the results of two rounds of metallurgical testwork.

Premier was undertaking a second round of metallurgical testwork using new underground material samples to enable the optimisation of the tungsten crushing and milling processes.

“While I am frustrated that the metallurgical studies need to be repeated, a satisfactory result will significantly strengthen our confidence in the project,” Roach said, noting that the initial study underestimated the anticipated outcome.