HomeEast AfricaPremier African Minerals acquires limestone deposit in Mozambique

Premier African Minerals acquires limestone deposit in Mozambique

TCT IF owns a substantial limestone deposit located southwest of Caia and significant forestry operations.

George Roach, CEO of the AIM-listed multi-commodity mining and natural resource development company says the deposit has very good prospects for development into a major low cost industrial scale mining operation with essential infrastructure already in place and a cash generative business to help finance the development.

The limestone deposit is located within the company’s 24 821 ha hardwood forestry concession located in central Mozambique and its exploration licence is in part coincident to the forestry concession.

Early test work on surface material of the limestone indicates that there are potentially acceptable grades of calcium carbonate (CaCO3) to produce limestone for use in cement production. It also suggests that the solubility of the material should make it suitable for the production of agrilime and aggregate.

Premier African Minerals says its board believes there is local demand for lime for cement production, agricultural applications, aggregates and other industrial uses.

The existing forestry operation is expected to contribute significantly to cash flows from an early stage and the forestry concession is valid for another ten years subject to another 50 year term.

“TCT IF is self-sustaining and will contribute positively to group cash flow in 2017,” Premier African Minerals adds.

Premier African Minerals’ development strategy is to find low capex projects with potential near-term production. The Board of Premier believes that the TCT IF limestone project provides this opportunity in a region that the company currently operates in, and that TCT IF’s limestone and timber interests complement the company’s current portfolio of minerals and natural resource interests.