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AN implementation study report on the low-capital open pit start-up strategy for multicommodity natural resource company Premier African Minerals’ RHA Tungsten project, in Zimbabwe, has determined a lower estimated preproduction capital cost of $4.15 million.In October last year, the Aim-listed company provided details of the start-up strategy, which had set out an initial estimated preproduction capital requirement of $4.8 million.
Premier, which owns a 49 percent stake in, and is the operator of the RHA Tungsten project, on Wednesday highlighted that the implementation study report had maintained the June 2015 targeted date for first production while operating costs had been reduced to $89.1 a metric tonne unit (mtu) of tungsten trioxide (WO3).
“The report confirms our strategy for RHA and supports our conclusion that the open pit is projected to generate sufficient surplus cash to allow for the start of repayment of loans to be made to RHA by Premier, and to finance the build of the underground operations,” said Premier CEO George Roach.
Further, he noted that Premier was still in negotiations for potential additional funding for the project.
Further, while the company had been offered offtake agreements for WO3 over the life of the mine, it would investigate other alternatives given the fact the mine had the potential to be “a significant, stable and long-term producer”.
The RHA project was expected to process 8,000 t/m of run-of-mine ore and produce, on average, 92 t/m of concentrate at 63 percent WO3 over a 22-month period. – Minigweekly.
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derick.khumalo