PREM updates on Tungsten Mining operations

Premier African Minerals said a review of immediately available tungsten rich material at its RHA Tungsten Operations (RHA) in Zimbabwe has been completed.

It revealed that there was sufficient tonnage immediately available both in the open pit and underground operations to support an initial three years' of operations at 39,000 tons per month once the proposed use of X-Ray Transmission ("XRT") system for ore sorting has been installed at RHA's ore processing plant.

Target date for installation is the end of November this year.

The XRT ore sorter is expected to be supplied on a toll basis and the company is fully funded for this RHA upgrade.

At the planned 39,000 tonnes per month of ore mined, it is estimated that RHA should be producing about 10,000 metric ton units (mtu) of tungsten trioxide concentrate per month, which is equivalent to approximately $1.12m per month in gross revenue at the current net price of $112 per mtu, which would be received by RHA.

A mtu is equal to ten kilograms of tungsten tri-oxide equivalent contained in a concentrate and is the standard weight measure of wolframite. Tungsten concentrate prices are generally quoted as US dollars per mtu discounted off the European price for ammonium para-tungstate (APT).

RHA Management budgets a monthly total expenditure on an EBITDA basis at $825,000 when XRT is fully operational and projected tonnages, recoveries and grades are achieved.