Name and Location
RHA tungsten project, Zimbabwe.

Client
Premier 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 for the project to demonstrate the effect on the project valuation of the additional work that has been completed since the publication of the PEA. The financial model outlines a low-capital implementation strategy.

Operations will start with an openpit mine, constrained to an 18-month production period, and then progress to underground operations.

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
Production is expected to start in June 2015.

Latest Developments
The first major commercial production of tungsten at the RHA tungsten project is expected in June.

The plant for the mine, which is being built in Johannesburg by Appropriate Process Technology, is due for shipment to Zimbabwe on May 11.

The RHA project has so far absorbed an investment of $9-million, the chairperson and CEO of London Aim-listed Premier African Minerals George Roach, has told Creamer Media’s Mining Weekly Online.

The mine will rail its concentrate to a choice of ports at rates Roach describes as competitive and the concentrate will not be subject to the latest 15% export levy.

RHA holds 50 mineral claim blocks, where historic mine workings in the form of trenches, pits, pegs and shafts are evident.

Opencast mining is envisaged for 22 months, with revenue from the openpit expected to repay debt currently being raised and open the way for the development of an underground mine, with an eight-year LoM based on measured and indicated resources.

The company says on its website that it is targeting a compliant indicated resource of up to ten-million tonnes at a grade of 0.12% to 0.17% tungsten trioxide (WO₃) and 86 000 t at 2.25% WO₃.

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.