Name of the Project
Zulu lithium/tantalum project.

Location
Zimbabwe.

Project Owner/s
Premier African Minerals.

Project Description
A scoping study on the Zulu project in 2017 evaluated the economics of developing an openpit mine and processing facility to directly produce spodumene and petalite concentrate.

The scoping study identified a target production of 84 000 t/y of spodumene concentrate and 32 500 t/y of petalite concentrate for an initial 15-year life-of-mine.

The 2021 updated scoping study is based on preliminary technical and economic assessments.

The updated scoping study has modelled three scenarios for different spodumene concentrate sales prices to illustrate the impact of the recent significant increase in prices of spodumene and petalite. No further changes have been made to the underlying economic, technical, engineering or processing assumptions used in the scoping study, the resources or the mine plan.

Overall, the improvement in spodumene pricing and, therefore, the revenue factors, have a significant positive improvement in the economic results despite the escalated capital and operating costs.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a net present value (NPV), at a 10% discount rate, of $127-million in the 2017 scoping study and an internal rate of return (IRR) of 85.9%, with a payback of two years, based on prices of $800/t spodumene and $400/t petalite concentrate.

In the 2021 scoping study, the project has an NPV, at a 10% discount rate of, $207-million, $292-million and $377-million, based on spodumene concentrate prices of $1 000/t, $1 150/t and $1 300/t respectively, and petalite prices of $400/t.

In the 2021 scoping study, the project has a pretax IRR of 112.4%, 144.3% and 176%, based on spodumene concentrate prices of $1 000/t, $1 150/t and $1 300/t respectively, and petalite prices of $400/t.

Capital Expenditure
The project has a total capital cost of $69.3-million in the 2021 scoping study, compared with $64-million in the 2017 scoping study. The project will require peak funding of $42-million in the 2021 scoping study, compared with $38-million in the 2017 scoping study.

Planned Start/End Date
Not stated.

Latest Developments
Premier African Minerals has said that pegmatite intersections have been encountered in a zone at the Zulu project that was not previously included in any of the company's exploration target assessments or in the existing resource estimate.

"Together with preliminary results from exploration activities in the wider exclusive prospecting area, this continues to support my view that Zulu is likely to emerge as one of the more substantial hard-rock, lithium-rich regions in Zimbabwe, a country already hosting significant lithium/cesium/tantalum pegmatites, and a deposit with world-class potential," CEO George Roach has said.

The company has drilled 4 190 m and completed 24 holes since the start of a definitive feasibility study on the project.

Roach has also noted that due diligence visits by parties interested in investing in the Zulu project are under way.

"Indications are that Premier is dealing with strong and growing interest as we progress Zulu," he adds.

Key Contracts, Suppliers and Consultants
Bara Consulting (2017 scoping study and scoping study financial matrix review).

Contact Details for Project Information
Premier African Minerals, tel +27 100 201281 or email info@premierafricanminerals.com.