Business
Underground Implementation Update: RHA Mine
Underground Implementation Update: RHA Mine.
About this update from Premier African Minerals Ltd.
[{"type":"text","content":"\n \nRNS Number : 1084M Premier African Minerals Limited 18 January 2016 \n\nPremier African Minerals Limited / Ticker: PREM / Index: AIM / Sector: Mining\n \n18 January 2016\nPremier African Minerals Limited \n(\"Premier\" or the \"Company\")\nUnderground Implementation Update at RHA Tungsten Mine\nCorporate Update\n \nPremier African Minerals Limited, the AIM-traded, multi-commodity mining and resource development company focused on Southern and Western Africa, is pleased to provide details of the Underground Implementation at its RHA Tungsten Mine (\"RHA\"), in respect of which the Company is the operator and holds a 49% interest. Underground development is based on an internal study prepared by RHA with input provided by Whaleside Shaft Sinkers Zimbabwe. The completion of the internal study by RHA supports the Board's decision to investigate and accelerate underground development as discussed in previous announcements (15 September 2015 and 27 October 2015). \nHighlights\nThe highlights of the implementation study are as follows:\n· Six month underground mining plan on 926 level while re-equipping of vertical shaft to 870 level implemented from November 2015; \n· Estimated capital cost of US$406,000;\n· Project schedule for equipping vertical shaft hoist and commissioning of operations on 870 level remains on schedule for February 2016, and\n· Positive operational cash flow from RHA (before capital expenditure and working capital) expected in spring 2016. \n \nGeorge Roach, CEO, commented: \"RHA was always planned, in the longer term, to be an underground mine. Unforeseen developments during the initial open pit operations led the Company to accelerate the move to underground mining. This change in strategy has resulted in the need to finance company overheads for an extended period without recourse to cash flow generated from the open pit and finance substantial additional debt generated by RHA. We have been successfully extracting and stockpiling ore from underground since late November 2015 and we now anticipate RHA to generate positive operational cash flow during the course of spring 2016. The Company also anticipates a liquidity event in relation to its interest in Circum Minerals Limited during 2016. Th...