Harare, Zimbabwe — 19 September 2013 – Exploration and development firm Premier African Minerals plans to start low-cost production of tungsten at its flagship RHA project, located along the Kamativi tin belt in the Matabeleland North province of Zimbabwe, by the end of 2014.
This follows a successful technical assessment of the viability of the site, which is expected to produce 192 000tpa of tungsten over the six-year life of the mine, reports allAfrica.com.
Premier African Minerals has mineral projects located in Western and Southern Africa. Tungsten and its alloys are used to make filaments for electric lamps and television tubes, and as electrical contacts, heating elements and other industrial applications. It is a metallic chemical element classified among the transition metals of the periodic table of elements and is well known for its strength and durability.
Premier African Minerals said underground mine development would start once open-cast production was underway.
“In line with this we are in discussions with potential funders for the project and possible off-take partners as one route to fast-track RHA towards production in the near term, with a target production of late 2014,” it said.
“The company aims to commence open-pit production development in late 2014, with underground mining development to commence thereafter to fulfils the project’s projected six-year life of mine.”
Meanwhile, Premier chief executive George Roach said the resource endowment at the project was enough to enable the company to recoup its investment. He added that the latest assessment had further highlighted the attractiveness of the project.
“With a revised net present value of US$120 million (up from US$118 million previously estimated) and a significantly increased internal rate of return before tax of 378% now projected “’ coupled with the low-capex nature of the project with estimated costs of US$13,5 million, excellent infrastructure, low-strip ratio, and a relatively simple processing route expected “’ we approach the next stages of development with confidence,” he said.
Source: allAfrica.com. For more information, click here.