daniel chigunwe
Business Writer
PREMIER African Minerals has announced a significant upgrade to the mineral resource estimate (MRE) at the group’s owned Zulu Lithium and Tantalum project in Insiza District, Gwanda Matabeleland North Province.
The MRE is based on assay results from 236 surface drill holes totalling 46 355 metres, 856 grade control holes totalling 5 640m and 123 surface trenches totalling 4 055m between September 2016 and December last year.
In a statement, Premier said the MRE was carried out by an independent qualified person, Charles Muller of Shango Solutions (Shango).
Premier chief executive officer, George Roach said: “This updated MRE represents a 23 percent increase in contained spodumene, a 17 percent increase in contained tantalum and an improved grade at a 0 percent cut-off of 0,54 percent Li2O (lithium oxide) compared to the MRE published in February 2024.
“The increases are attributable to several reasons that include the fact that mining development and grade control indicates in situ grade estimates are understating the actual grades being mined, an adjustment in ore body density and additional data now included.”
He said the updated MRE has been prepared on a depleted basis following mining conducted to date.
Thus it should be noted that with ongoing mining activities, further sections of the ore body are expected to be reclassified into a measured category that will be supported by close-spaced in pit grade control assessments from time to time.
“It is worth noting that this MRE is based on an assumed 80 percent of the total Li2O grade of the ore body being attributable to the SQI dominant style of mineralisation, which the company believes is conservative and ongoing analysis of the mineral assemblage may support an increase in this percentage with potential increases in the contained spodumene.
“We have previously set out our expectation that Zulu is likely to produce spodumene concentrates with low iron and higher spodumene concentrate grades.
“Certain necessary plant issues are being attended to and will be dealt with in a separate announcement to follow shortly,” said Roach.
Meanwhile, the United Kingdom-headquartered mining group may declare force majeure at Zulu in a move aimed at temporarily suspending contractual obligations amid ongoing financial difficulties.
According to sources, Zulu is struggling to meet its financial commitments and reportedly owes some contractors huge amounts of money.
Force majeure is a legal term that exempts a party from liability or obligations under a contract due to an extraordinary event or circumstances beyond their control.
The sources have hinted that the force majeure is expected to run until January 8 next year.
The previous force majeure declared by Premier last year was due to plant issues that prevented the company from fulfilling its lithium concentrate delivery obligations to an offtaker, Canmax, a Chinese lithium battery producer.
The offtake agreement is for the supply of spodumene concentrate to Canmax in exchange for a cash injection, Canmax the single largest shareholder in Premier made towards the construction of the Zulu processing plant.
Bongani Ndlovu