Zulu Lithium to commence production Q1 next year
London Stock Exchange-listed mining and exploration junior Premier African Minerals Limited is considering an early production strategy at its Zulu Lithium and Tantalum Project if its proposed pilot plant attracts significant funding.
Rudairo Mapuranga
The AIM-traded firm said that, since the acceptance of the subscription by Suzhou TA&A Ultra Clean Technology in March, and with results from initial test work on ore sorting by Anzaplan in association with Stark, it was “clear” that a potential opportunity existed for Zulu to be brought into early production.
According to the company’s Chief Executive Officer Mr George Roach, there is a potential opportunity for Premier to commence early production based on a large-scale pilot plant, he however said that there is yet to be funding for the potential proposed early production.
“It is clear that a potential opportunity exists for Zulu to be brought into early production based on a large-scale pilot plant using ore sorting technology to concentrate spodumene-rich ore from other lithium minerals and gangue material before milling and floatation to produce a spodumene concentrate only and stockpile both a tantalum-rich fraction and petalite for future processing. Based on this plan, it is possible that such a plant could be in production in Q1 2023, funded under an interest-free prepurchase payment for spodumene concentrate to be supplied. Shareholders should note that no funding has yet been arranged for this possible pilot plant and amongst many aspects of this whole concept still under scrutiny, this will still require completion,” Roach said.
Roach also commended saying that: “It is worth noting that the current demand for spodumene and the resultant prices, significantly de-risk this concept and support Premier’s recent focus in terms of both our drilling programme at Zulu that is now exclusively targeting high-grade spodumene zones within the ore body at an indicated resource level and on aspects of the DFS in relation to the implementation of the pilot plant. Importantly, operation of the pilot plant will fine-tune aspects of the process that will support the DFS. Further details will be provided in due course along with details of any finance arrangements, together with illustrative valuation and revenue projections for the pilot plant.
“To date, a total of 18,000 meters has been drilled at Zulu, and after a complete revision of QA/QC procedures and all aspects of sample preparation and analysis, assay testing and results are now continuing and the Company will publish highlights and significant assay results in due course when these are available.
“In closing, I remind shareholders that Premier is potentially following an accelerated programme of early production to exploit the current opportunity. There are identified risks and abatements inherent in this to a greater extent than may be the case following a fully developed DFS. However, the potential immediate availability of prepurchase payment and existing Spodumene price and demand are important and strong motivators in potentially pursuing this option”.