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Premier’s RHA LoM extended to 15 years

13th October 2014

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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JOHANNESBURG (miningweekly.com) – A revision of the preliminary economic assessment (PEA) for Premier African Minerals’ RHA tungsten project, in Zimbabwe, has extended the life-of-mine (LoM), hiked the expected concentrate output and increased the internal rate of return (IRR).

The multicommodity natural resource company on Monday announced that the revised PEA showed that the life of the $12.8-million mine would be extended from 6 to 15 years, with 23 907 t of concentrate produced, up from the 2013 estimate of 8 908 t, and an average head grade of 6.97 kg/t delivered, compared with the initial 7.51 kg/t.

Pretax project net present value, at 5%, reached $183-million, with the IRR rising to 455%.

"This update to our September 2013 PEA takes into account recently announced mineral resource increases, final metallurgical studies and testwork and a number of other important trade-off and optimisation studies and, while still at PEA status, reflects a substantial increase in the confidence levels of the project,” said Premier CEO George Roach.

The emerging mine, with an operating cost of $145.9-million, would deliver revenue of $434.7-million.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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