RHA Tungsten Project Exploration Update, Zimbabwe

Premier African Minerals Limited / Ticker: PREM / Index: AIM / Sector: Mining 18 February 2013 Premier African Minerals Limited (`Premier' or `the Company') RHA Tungsten Project Exploration Update, Zimbabwe Premier African Minerals Limited, the AIM quoted multi-commodity natural resource company with mineral projects located in Western and Southern Africa, is pleased to announce a positive exploration update from its flagship RHA Tungsten Project, located in the prospective Kamativi Tin Belt in north-west Zimbabwe (`RHA' or `the Project'). The Company believes the Project has the potential to be developed into a low capital and operating cost tungsten mine in the near term. Overview * 1,302m five hole diamond drilling (`DD') programme undertaken at RHA, sampling confirmed significant tungsten oxide (`WO3') values - best results include: * + DD003: Weighted average 0.46% WO3 over 15m* + DD004: Weighted average 0.65% WO3 over 6m* + DD006: Weighted average 1.33% WO3 over 3m* *Note: Intersection widths, not true widths * Drilling has uncovered two, potentially three, previously unknown, well mineralised quartz veins lying in the hanging wall of the existing lode system * Further detailed examination and sampling of the DD drill core has been completed with 198 samples taken targeting individual samples and zones > 0.15% (`WO3') - results due Q1 2013 * Initial detailed geological logging has revealed tungsten mineralisation in the form of very coarse wolframite crystals, hosted within narrow quartz veins between 5cm and 10cm * Further low-cost surface trenching and sampling will be undertaken in Q1 2013 to confirm the surface location and extent of the hanging wall lodes * SAMREC compliant resource on target for H1 2013 * 3D Datamine modelling underway - completed model will be used as the basis for a concept mine technical and economic study targeted to commence end of Q1 2013 To view the release with pictures please visit www.premierafricanminerals.com `Newsroom' Premier's Chief Executive Officer George Roach said, "This update has revealed significant tungsten mineralisation in the form of very coarse wolframite crystals hosted by quartz veins identified from drillhole intersections, and highlights the exceptional prospectivity of our RHA tungsten project. It is now our intention to conduct low-cost surface trenching and sampling to confirm the extent of these newly identified quartz veins and define a maiden SAMREC compliant resource in H1 2013. In tandem with this, we are also completing a conceptual mine study, which will determine the most beneficial and cost effective method of exploiting the known extent of the RHA deposit. The conceptual study will consider the possibility of early and low-cost production from the recently discovered outcropping mineralised quartz veins, and from existing tailings dams and dumps. Given the availability of water and power at our RHA property, and the relative simplicity of the required processing plant, we believe that we will be able to commence development with a view to production potentially before the end of 2013." Further Information RHA covers 1,800ha land holding and is located approximately 20km south-east of Hwange and 270km north of Bulawayo in the prospective multi-commodity Kamativi Tin Belt in north-west Zimbabwe. The Project has excellent infrastructure with electrical power available from a ZESA power line, industrial water available from the mine dam and domestic water available from a borehole. Furthermore, the project has easy access via the main Bulawayo-Victoria Falls tar road and 25km of gravel road to the mine. Intermittent small scale mining has been conducted at RHA and the adjacent Tung mine (which Premier has an option to acquire) 5km away, and between 1931 and 1979 jointly produced 1,247 tonnes of concentrate at an average concentrate grade of 65% WOȝ. RHA occupies a low ridge approximately 850m long and 300m wide standing circa 120m above its surroundings. Historic mine workings are in the form of adits, open pits, caved stopes, trenches, roads and rock dumps that occupy the surface. Tailings dumps are located on the north and south sides of the ridge. Previous mine development was almost entirely carried out during the 1930s where the mine was developed on 30m levels from 945m to 849m, by means of horizontal adits into the sides of the ridge and a single vertical shaft down to the 845m level. Some open pitting also occurred on the western part of the deposit. During the mid to late 1970s Falconbridge Ltd (which is now part of Xstrata), trading as Blanket Mines in Zimbabwe, carried out underground geological mapping and extensive channel sampling on the accessible parts of the underground workings, principally on the 926, 895 and 859 levels. Exploration work was curtailed due to the political and security situation prevailing in the country at that time. At RHA, the known mineralised lodes and veins occur within an envelope that extends over a strike of approximately 400m with a maximum width of 150m. The lodes are thought to converge to the east of the property. The lodes strike approximately northeast-southwest paralleling the regional trend of Kamativi Inlier. The host country-rock comprises high-grade, strongly foliated biotite schists and paragneisses of the Precambrian Dete Inlier belonging to the Tshontada Formation. The formation trends northeast on a regional scale, paralleling the trend of the Kamativi Inlier and dips steeply to the northwest. The tungsten mineralisation occurs in quartz veins and shear zones, within a sequence of quartz-tourmaline and pelitic schists that may be associated with granite intrusions. High metamorphic grades with localised partial melting are also evident. The schists also show that extreme deformation has occurred and mylonite bands are common. The association of quartz veins with tourmaline schist form distinct lodes which were exploited by historic mining at RHA. These lodes are steeply dipping to the northwest at 80o to 90o. Seven lodes have been previously identified which were exploited in the past. The tungsten mineral of primary economic interest is wolframite (Fe,MnWO4), with minor amounts of scheelite (CaWO4). The only other mineral of potential economic significance is chalcopyrite (CuFeS2). The wolframite occurs as euhedral crystals, laths and clusters that may be up to 50mm by 30mm in size. This very coarse grain size is characteristic of the quartz vein-hosted tungsten mineralisation. Exploration Update Premier commenced a diamond drilling (`DD') programme in January 2012, prior to the Company's admission to AIM in December 2012. This programme included five inclined DD holes which were completed for a total of 1,302m. All holes were drilled at an angle of -45o and started at NQ-size, reducing to BQ-size when ground conditions permitted. In an initial round of sampling, a quarter of core was sampled over 3m intervals for the full length of each borehole and analysed for WO3, copper (`Cu'), tin (`Sn') and tantalum (`Ta') at the SGS laboratories in Johannesburg. Certain of the WO3 values were found to be of significant economic interest and these results are tabulated below. Table 1: Significant analytical results from the initial sampling programme Borehole Intercept (m) WO3% WO3 kg/t DD002 13.14 -16.14 0.45% 4.50 DD002 205.50 - 208.5 0.24% 2.40 DD002 208.50 - 211.50 0.37% 3.70 DD003 70.50 - 73.50 0.50% 5.00 DD003 73.50 - 76.50 0.56% 5.60 DD003 76.50 - 79.50 0.40% 4.00 DD003 79.50 - 82.50 0.39% 3.90 DD003 82.50 - 85.50 0.45% 4.50 DD004 97.78 - 100.78 0,78% 7.80 DD004 109.78 - 112.78 0.35% 3.50 DD004 112.78 - 115.78 0.95% 9.50 DD005 166.00 - 169.00 0.27% 2.70 DD005 172.00 - 175.00 0.29% 2.90 DD005 175.00 - 178.00 0.43% 4.30 DD005 181.00 - 184.00 0.15% 1.50 DD005 184.00 - 187.00 0.25% 2.50 DD005 205.00 - 208.00 0.37% 3.70 DD005 211.00 - 214.00 0.34% 3.40 DD006 28.24 - 31.24 0.42% 4.20 DD006 61.24 - 64.24 1.33% 13.3 NB: The intercept is the intersection width and not the true width. It is worth noting that tungsten mineralisation is present over significant intersection widths as shown below. Table 2: Weighted average grades from the RHA boreholes Borehole Intercept (m) Width (m) WO3% WO3 kg/ m.kg/t t WO3 DD002 205.50 - 208.50 3.00 0.24% 2.40 7.20 DD002 208.50 - 211.50 3.00 0.37% 3.70 11.10 Weighted average 3.05kg/t over 6m Borehole Intercept (m) Width (m) WO3% WO3 kg/ m.kg/t t WO3 DD003 70.50 - 73.50 3.00 0.50% 5.00 15.00 DD003 73.50 - 76.50 3.00 0.56% 5.60 16.80 DD003 76.50 - 79.50 3.00 0.40% 4.00 12.00 DD003 79.50 - 82.50 3.00 0.39% 3.90 11.70 DD003 82.50 - 85.50 3.00 0.45% 4.50 13.50 Weighted average 4.60kg/t over 15m Borehole Intercept (m) Width (m) WO3% WO3 kg/ m.kg/t t WO3 DD004 109.78 - 112.78 3.00 0.35% 3.50 10.50 DD004 112.78 - 115.78 3.00 0.95% 9.50 28.50 Weighted average 6.50kg/t over 6m Borehole Intercept (m) Width (m) WO3% WO3 kg/ m.kg/t t WO3 DD005 172.00 - 175.00 3.00 0.29% 2.90 8.70 DD005 175.00 - 178.00 3.00 0.43% 4.30 12.90 Weighted average 3.60kg/t over 6m Borehole Intercept (m) Width (m) WO3% WO3 kg/ m.kg/t t WO3 DD005 181.00 - 184.00 3.00 0.15% 1.50 4.50 DD005 184.00 - 187.00 3.00 0.25% 2.50 7.50 Weighted average 2.00kg/t over 6m NB: The intercept is the intersection width and not the true width. The positive results received from the first round of sampling prompted Premier to conduct a further detailed logging and sampling of the drill core during Q4 2012. Zones where assay results returned tungsten values over 0.15% WO3 were the primary target of this campaign. 198 samples were taken excluding blanks, duplicates and CRMs. The relative density of each sample has been determined by means of a Density Scale. These samples are to be submitted to SGS, Johannesburg for analysis. The analytical results are targeted to be received by mid to late March 2013. Importantly, the detailed geological logging has revealed that the tungsten mineralisation is in the form of very coarse wolframite crystals, hosted within narrow quartz veins. These veins are between 5cm and 10cm in width and with few exceptions are hosted within quartz-tourmaline schist bands that make up the known lodes. Certain results of the mineralised quartz veins are shown below to illustrate the degree and coarse nature of the wolframite mineralisation. * DD002: 14.58 - 14.64m quartz vein in tourmaline schist mineralised with coarse wolframite * DD003: 76.79 - 77.07m quartz vein mineralised by a single large block of wolframite * D005: 237.53 - 237.63m 40mm quartz vein with a large cluster of wolframite intergrown with fine grained chalcopyrite * DD004: 112.35 - 112.58m sheared quartz vein with laths of euhedral wolframite * DD006: 29.37 - 29.49m weathered quartz vein, partially oxidised wolframite * DD006: 61.07 - 61.20m quartz vein with wolframite laths and clusters broken up by shearing Drillholes DD005 and DD006 revealed two, or possibly three, previously unknown, well mineralised quartz veins lying in the hanging wall of the existing lodes. In DD005, a quartz vein was intersected at an inclined depth of 33.55 to 33.65m. In DD006, quartz veins were intersected at inclined depths of 29.37-29.49m and 61.07 to 61.20m. The boreholes were drilled 100m apart, Strike continuity of the veins between the drillholes has yet to be established. Further low-cost surface trenching and sampling will be undertaken by Premier in Q1 2013 to confirm the extent of these mineralised quartz veins. Techno-economic study Premier has commissioned mining consultants, CAE Mining of Johannesburg to construct a 3D Datamine model using information derived from historic plans and sections, and the results of the historic Falconbridge channel sampling work undertaken at RHA. This work is now at an advanced stage and the results of Premier's first round of sampling have been modelled. The analytical results from Premier's latest round of detailed sampling will be evaluated and included into the 3D Datamine model when the results are available. As mentioned, the results of the latest round of sampling undertaken by Premier are targeted for mid to end of March 2013. The completed model will be used as the basis for a concept mine technical and economic study which the Company is targeting to commence towards the end of Q1 2013. The study will determine the most beneficial method of exploiting the known extent of the RHA deposit. It will also consider the option of early and low-cost production from the recently discovered mineralised quartz veins, and from existing tailings dams and dumps. Given the availability of water and power at the RHA mine, and the relative simplicity of the required processing plant, the Company believes that production may be able to start before the end of 2013. Qualified Person: The technical information contained in this announcement has been prepared and reviewed by Robert Ingram BSc, C.Eng., Pr.Nat.Sci., FGSSA, MSEG, and Professor Alexander du Plessis PrEng, BSc(Eng), MSc(Eng), CertEng, FSAIMM, who are the appointed consultants to Premier African Minerals Limited. Mr Ingram is registered with The South African Council for Natural Scientific Professions (SACNASP) Registration Number 400057/92, and Professor du Plessis with the Engineering Council of South Africa (ECSA) registration Number 950232. They are satisfied with the accuracy and precision of this release by Premier African Minerals Limited. **ENDS** For further information please visit www.premierafricanminerals.com or contact the following: Pamela Hueston Premier African Minerals Tel: +44 (0) 755 778 3855 Limited Tony Rawlinson Cairn Financial Advisers LLP Tel: +44 (0) 207 148 7900 (Nominated Adviser) Jerry Keen Shore Capital Stockbrokers Tel: +44 (0) 207 408 4090 Limited Edward Mansfield Shore Capital Stockbrokers Tel: +44 (0) 207 408 4090 Limited Felicity Edwards St Brides Media & Finance Ltd Tel: +44 (0) 20 7236 1177 Notes Premier African Minerals Limited is a multi-commodity exploration and development company focussed in Southern and West Africa. The Company has a diverse portfolio of multi-commodity projects which includes tungsten, phosphate, rare earth elements (`REE'), gold, lithium, tantalum, uranium and clays, in Zimbabwe and Togo, at various stages of development. Premier plans to utilise the strengths of its proven Board and management team, which is highly experienced in developing resource projects in Africa, to fulfil its strategy of developing and targeting projects which offer near term value uplift either through exploration, strategic alliances or commercial opportunities. The Company has two flagship projects in NW Zimbabwe (tungsten and REE) which offer near-term resource and future production potential. The RHA Tungsten Project is described herein, and Premier's second priority project in Zimbabwe is the Katete REE project, which again has the potential to be developed as an open pit mine. The project, which spans 3,750 ha, has returned a peak result from trenching of 14.6% TREO. Premier is targeting to delineate a maiden resource in H1 2013. In Togo, the Company has prioritised a further two projects for exploration: the Southern Togo Phosphate Project and the Dapaong Gold project. The Southern Togo project, which has excellent infrastructure being only 35km from the Port of Lome, has a conceptual exploration target of 75Mt at 32% P₂O₅. Additionally, it recently secured the exploration permits for its Dapaong gold project in northern Togo where there has been significant artisanal activity illustrating the prospectivity of the unexplored area. Premier also has a pipeline portfolio of projects which further de-risks the Company's exposure and it is assessing new opportunities that complement its investment criteria to drive the Company forward and build a leading multi-commodity exploration and development company in Africa.
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