HARARE – Premier African Minerals said that drill results from its Zulu lithium plant in Zimbabwe yielded good grades in nearby locations outside of the present mining developments.
The company said certain sections of the Southeast pegmatite have a high potential for rock-based lithium, and that geological logging shows that the lithium mineralisation in this pegmatite is almost entirely spodumene.
Commenting on the developments, CEO George Roach said, “Test work in our laboratory at Zulu has consistently confirmed that Zulu can produce SC6 at acceptable grades from a contained spodumene content in the ore body as low as 4%, representing a potential economic cut-off grade as low as 0.37% Li2O when the contained mineral is spodumene.
“Whilst mining operations are a major cash cost at present, the future benefit when operations are underway at much reduced stripping ratios will more than offset this cost.
Premier African is on pace to begin revenue-generating production in February 2024, following the installation of the 55-ton-per-hour ball mill and other accompanying buildings, which is slated to be completed in late January/early February.
In addition to the investment round, Premier African has conditionally resolved the payment of $2.5 million (£2 million) in invoices by issuing additional ordinary shares to Zulu open pit mining contractor JR Goddard Contracting at 0.26 pence apiece.