Name of the Project
Zulu lithium/tantalum project.

Location
Fort Rixon, Zimbabwe.

Project Owner/s
Premier African Minerals.

Project Description
A scoping study 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.

The improvement in spodumene pricing and, therefore, the revenue factors, have resulted in 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 reported that recent drilling at its Zulu project has intersected multiple thick high-grade zones.

Assay results from drill hole ZDD075 have revealed 1.29% lithium oxide and 62 parts per million (ppm) of tantalum pentoxide over 3.74 m, from 56.96 m below surface, while mineralisation of 0.92% lithium oxide and 36 ppm of tantalum pentoxide has been recorded over 2.38 m, 61.14 m below surface.

Located 80 km from Bulawayo, the same drill hole has also shown mineralisation of 1.16% lithium oxide and 15 ppm of tantalum pentoxide over 3.89 m, 102 m below surface.

These assay results are just a few of more than 2 000 outstanding assays.

Premier CEO George Roach has noted that good progress continues to be made with early mine build, with site earthworks and camp construction progressing well.

Further, Premier is nearing finalisation of an offtake agreement for products to be produced from the Zulu project.

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.