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February 2015
MODERN MINING
9
MINING News
Premier African Minerals Limited has provided
details of the Implementation Study report it
has prepared in regard to the open-pit start
up strategy for its RHA tungsten project in
Zimbabwe. Premier is the operator of the proj-
ect and holds a 49 % interest.
Highlights of the report include a reduction
in pre-production capital to US$4,15 million
and in operating costs to US$89,1/mtu (metric
ton unit). The pre-tax NPV (at a discount rate of
10%) is estimated at US$5,4million, the pre-tax
IRR at 161 % and the payback fromfirst produc-
tion at 10 months.
“The Implementation Study confirms
our strategy for RHA and supports our con-
clusions that the open pit is projected to
generate sufficient surplus cash to allow
both commencement of repayment of loans
made to RHA by Premier, and to finance the
build of the underground operations,” com-
ments George Roach, Premier’s CEO. “Most
encouraging is the projected operating cost
of US$89,1 per mtu WO
3
.”
RHA will target processing of 8 000 tonnes
of run of mine ore per month at a diluted grade
of 10,24 kg/t to produce, on average, 92 tons
of concentrate at 63 %WO
3
per month over a
22-month period.
The definitive estimate is a culmination
of work performed by Peacocke Simpson &
Associates, Appropriate Process Technologies
(APT), CAE Mining Africa, Senet, Blonton
Management Consultants, Ground Water
Development Consultants, Constant Chuma
Consulting and Bumira Environmental
Consultants and is considered suitable as
the control budget estimate for the execu-
tion phase (-5 % to +15 %).
The financial model incorporates firm
quotations for 80 % of the pre-production
capital estimate including fabrication and
installation of the process plant, earth-
works and civil works, a road upgrade,
the mining contract, as well as the pro-
curement and construction management
contract.
As we reported in last month’s issue,
Premier recently placed an order for
the project’s process plant. The plant is
designed to meet a throughput of 16 t/h
or 8 000 tonnes per month and achieve a
wolframite recovery of 82,8 %. The stated
production rate excludes any consideration
of a pre-concentration circuit which, if
implemented in future, could increase the
plant throughput fivefold at a 20 % recov-
ery loss as determined in the metallurgical
test work announced in September 2014.
The modular plant will be built in
Johannesburg by Appropriate Process
Technologies (APT). The modules will be
containerised and trucked to site where it
is expected that the process plant will be
fully commissioned by mid-2015.
The RHA project is located in Mata
beleland North province, about 20 km
south-east of Hwange and 270 km north
of Bulawayo, the provincial capital.
Pre-production capex for tungsten
project in Zimbabwe reduced
The RHA project layout showing pit and waste dumps.