Premier African Minerals has maintained late February as the deadline for production-restart at its Zulu lithium and tantalum project in Matabeleland South Province.
In November last year, the Zimbabwe-focused diversified mining group announced that plant operations at Zulu had been partially suspended to allow for civil construction to commence in preparation for the installation of the 55 tonnes per hour ball mill and other associated structures.
Latest assay results at Zulu have shown heavy presence of spodumene — a rock that is a commercially important source of lithium.
The latest assay results include both surface trenches and drill holes located within the area of the mineral claims block, but outside of the existing mining operations and pit development.
In an update, Premier said its internal budgets (which have not been independently verified) predict an average production cost on a mine gate basis of US$800 per tonne of spodumene concentrate 6 (SC6).
“At present SC6 selling prices, and after an allowance for freight charges of US$152 per tonne, production at this point in time of basic SC6 standard product is marginally profitable.
“However, Zulu is expected to produce a low iron higher grade spodumene concentrate in the normal course from clean ore as previously indicated by Anzaplan in original test work, and as demonstrated in Premier’s laboratory at site.
“This spodumene concentrate currently attracts a substantial price premium which is expected to buffer the effects of the lower SC6 prices at present,” it said.
The significant expansion in mining operations to facilitate delivery of ore with less country waste and to compensate for any residual issues with the sorters, together with the minor delay with the mill delivery, has further constrained Premier’s cash resources.
The mining group predicts that additional funding will be needed in the near-term.
“Premier’s contractors and suppliers are assisting and alternatives to equity-based funding are under investigation.
“With a project as well advanced as Zulu with a fully developed mine, market in place, this remains the only significant obstacle.”
Meanwhile, a technical team from Germany is currently at Zulu to optimise the sorters and in so doing facilitating the removal of waste material that previously led to contamination of concentrates.
Concurrently, a thickener is under installation and this is expected to complement the floatation circuit by improving the density and flow of slurry to the floatation plant.
The new ball mill that has been custom built for Zulu is expected to depart from South Africa month end.
“And will represent the last major item to be positioned and connected for a restart of production that is still anticipated late February 2024.
“By this time, an additional hydrosizer, mill discharge screen, and associated tanks, sumps and pumps are expected to have been installed,” said Premier.
The firm’s chief executive officer Mr George Roach was quoted as saying their focus remains on the Zulu project unless something unforeseen takes precedence.
“We have set out above a summary of the status quo. The entire focus of our Company is on our Zulu project and unless there are unforeseen circumstances that I have overlooked, and provided our plant suppliers deliver as expected, we remain on target to produce late in February 2024,” he said.
Herald
