Premier African Minerals investment upbeat on updated resource

Mining, exploration and production company Premier African Minerals announced on Friday that Circum Minerals, in which Premier holds two million shares - equivalent to an interest of approximately 2% - had posted an updated presentation on its website.

The AIM-traded firm pointed to Circum’s updated mineral resource of 4.9 billion tonnes at 18.1% KCI, with reserves of 107.8 of KCI equivalent.

Seismic data suggested a potential total resource of 12 to 14 billion tonnes, with Circum targeting annual production of 2 Mt of MOP and 0.75 of SOP for phase one, using low cost, low risk solution mining and solar evaporation.

It also spoke of scalable production, with r resources sufficient to support at least two - and possibly three - expansions.

Mine gate cash costs were projected to be among the lowest in the world, with Circum aiming for one of the least capital-intensive operations per annual tonnage of any major potash project globally.

It also claimed “substantial transportation advantages” to India, south west Asia and south China, and a management team with experience building mines and a track record to production

“The expected sign-off of Circum's mining license and possible liquidity event in the near future, the impending return to production at RHA, ongoing results from Zulu Lithium and the end of all convertible loan notes all support the recent improvements in Premier's market capitalisation,” said Premier CEO George Roach.

“To put the Danakil project in context, the much smaller Yara project to the south of Circum was funded on a valuation of $200m last year.

“And, I believe that Circum should warrant a significantly higher valuation on its much bigger project particularly as and when the mining license is granted.”