Premier African Minerals Ltd. · LSE:PREM
Premier African Minerals — Investor Presentation (November 2014)
35 slides from Premier African Minerals's investor presentation, November 2014
Slide 1: Premier African Minerals
Slide 2: Important Notice
Important Notice By attending this presentation and/or accepting these slides you agree to be bound by the following conditions and will be taken as having represented and undertaken that you have agreed to do so. These presentation slides and accompanying verbal presentation (“Presentation Material
Slide 3: Important Notice (Continued) & Insider Notice
Important Notice (Continued) & Insider Notice Any such distribution could result in a violation of American, Canadian, Australian, Japanese, South African or Irish law. It is the responsibility of each recipient outside the United Kingdom to ensure compliance with the laws of and regulations of any
Slide 4: Company Snapshot
Company Snapshot AIM-listed exploration and development company focused on Southern and Western Africa with near term Tungsten production PROFILE Zimbabwe potential at RHA in Zimbabwe. Other exploration projects include REE, lithium, tantalum, fluorspar, graphite, gold, nickel and zinc. Bring histor
Slide 5: Company Activity Since AIM Listing
Company Activity Since AIM Listing London (AIM) MAJOR SHAREHOLDERS - % of issued share capital PREM (as of 3 November 2014) Coc’roach Ltd/ZRH Nominees Ltd 40.8% Ordinary Shares in Issue Paddington Commercial Ltd 3.8 % 503,116,580 Cumming Family Trust 3.1% Share Price (GBP) 0.975p Market Cap (GBP, mi
Slide 6: Board of Directors & Key Management
Board of Directors & Key Management GEORGE ROACH Chairman & CEO George Roach has extensive experience in natural resource business development in Africa. He has successfully obtained licences and concluded Mineral exploration and exploitation agreements in the entire SADC region, Ethiopia and most o
Slide 7: Board of Directors & Key Management
Board of Directors & Key Management WERNER SWANEPOEL Chief Operations Officer Mr. Swanepoel is a professional mining engineer with 23 years’ experience in the mining industry. He has filled various roles in mining operations, mine management, consulting and project development within Central and Sou
Slide 8: RHA Tungsten Project Overview - Zimbabwe
RHA Tungsten Project Overview - Zimbabwe The RHA Tungsten Project (RHA) covers a substantial land-holding in the prospective multi-commodity Kamativi Tin Belt in NW Zimbabwe. RHA has potential to be developed into a low capital and operational cost mine in the near-term, with proven mineralisation a
Slide 9: RHA Tungsten Project - Highlights
RHA Tungsten Project - Highlights High Grade Resource • M&I Resource of 1.55mt at 7.97kg/t WO3 @ 3.41m • Inferred Resource of 1.18mt at 9.67kg/t WO3 @ 2.51m • Upside potential Historic mining record • 1919 t WO3 concentrate between 1931 – 1979 • Vertical shaft, numerous adits and underground develop
Slide 10: Achievements To Date
Achievements To Date Completed first drill campaign in January 2013 Maiden resource statement announced in March 2013 Technical report issued in September 2013 Second drill campaign completed in December 2013 Updated resource statement announced in May 2014 ESIA prospectus approved in Se
Slide 11: RHA Tungsten Project – Work In Progress
RHA Tungsten Project – Work In Progress Implementation study on Open Pit* • Metallurgical test program – September 2014 – Completed* • Process plant design – September 2014 - Completed* • Open pit mine design – October 2014- Completed* • Tailings storage facility – January 2015 • Infrastructure and
Slide 12: Fast track option
RHA Tungsten Project – Overall Production Development Strategy Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2015 2015 2015 2015 2016 2016 2016 2016 2017 2017 Open pit implementation Open pit production Underground study Underground Implementation Underground production Second plant and Ramp up 2018 Fast track opti
Slide 13: RHA Tungsten Project – Early Production Development Strategy
RHA Tungsten Project – Early Production Development Strategy Aug Sept Oct Nov Dec Jan Feb March April May Concept approval Trade off studies PEA report update Topographic survey ESIA Process Met test work and Process design Old Mine Resource Implementation Study: Mine, TSF, Infrastructure, Support f
Slide 14: RHA Tungsten Project – Pit optimization results
RHA Tungsten Project – Pit optimization results Selected pit www.premierafricanminerals.com CORPORATE PRESENTATION, December 2014 14
Slide 15: RHA Tungsten Project – Pit and Waste dumps
RHA Tungsten Project – Pit and Waste dumps Old Pit Waste Dump 1 Lodes Waste Dump 2 www.premierafricanminerals.com CORPORATE PRESENTATION, December 2014 15
Slide 16: Open pit outline with lodes
Open pit outline with lodes North Adit Load 1W South Adit Load 2W Load 2HW Old Pit www.premierafricanminerals.com CORPORATE PRESENTATION, December 2014 16
Slide 17: RHA Tungsten Project – Mine design
RHA Tungsten Project – Mine design www.premierafricanminerals.com CORPORATE PRESENTATION, December 2014 17
Slide 18: RHA Tungsten Project – Production schedule tonnage
RHA Tungsten Project – Production schedule tonnage www.premierafricanminerals.com CORPORATE PRESENTATION, December 2014 18
Slide 19: RHA Tungsten Project – Production schedule grade and content
RHA Tungsten Project – Production schedule grade and content www.premierafricanminerals.com CORPORATE PRESENTATION, December 2014 19
Slide 20: Metallurgy Development & Recoveries
Metallurgy Development & Recoveries • Metallurgical test work completed by Peacocke and Simpson • 1,000kg bulk ore sample from historic underground workings • 2,000kg bulk ore sample from historic tailings • Confirmatory assays and GAT test work done by SGS, Johannesburg • Test flow sheet includes c
Slide 21: Metallurgy Development & Recoveries
Metallurgy Development & Recoveries • Overall recovery via jigging and spiral concentration was 82.7% of the test head to a final product assaying 63.0% WO3 into a mass yield of 4.8%. www.premierafricanminerals.com CORPORATE PRESENTATION, December 2014 21
Slide 22: Preliminary Flow Sheet
Preliminary Flow Sheet www.premierafricanminerals.com CORPORATE PRESENTATION, December 2014 22
Slide 23: Process Plant - 3D Model
Process Plant - 3D Model www.premierafricanminerals.com CORPORATE PRESENTATION, December 2014 23
Slide 24: RHA Tungsten Project – Infrastructure
RHA Tungsten Project – Infrastructure Power • 450Kw Installed power requirements for the plant • Current provision for 800Kva generator for Open pit phase • Additional generator and grid line upgrade for the second phase Water • Plant make up requirement 50m3/hr • Return from tailings 4.5m3/hr • Ret
Slide 25: RHA Tungsten Project – General layout
RHA Tungsten Project – General layout Plant area New tailings Waste rock dumps Old tailings Open pit RHA Camp www.premierafricanminerals.com CORPORATE PRESENTATION, December 2014 25
Slide 26: RHA Tungsten Project – Tailings
RHA Tungsten Project – Tailings Current status • Conditional approval received to use Old tailings facility as low capital start up • Hydrological study completed on old tailings area New tailings • Civil investigation started on old tailings • Blonton Consultants commenced detail design Old tailing
Slide 27: Financial Model For Open pit phase
Financial Model For Open pit phase The results presented are based on the PRELIMINARY ECONOMIC ASSESSMENT ON LOW CAPITAL IMPLEMENTATION STRATEGY dated October 2014. RHA TUNGSTEN FINANCIAL MODEL - LOW CAPEX OPEN PIT STRATEGY_ OCTOBER 2014 1 2 3 4 5 6 7 unit Total Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 20
Slide 28: Financial Model For Open pit phase
Financial Model For Open pit phase The results presented are based on the PRELIMINARY ECONOMIC ASSESSMENT ON LOW CAPITAL IMPLEMENTATION STRATEGY dated October 2014. unit Total Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Operating Costs Mining O/P Waste Mining 4.5 6 529 051 - 382
Slide 29: Start up Capital cost breakdown
Start up Capital cost breakdown Start-up capital requirements - $4.77m Open pit mining - mobilization / establishment - 300,000 135,678 Plant 370,983 Tailings 922,335 Utilities 2,245,086 636,900 Support Infrastructure CM cost Sustaining Capital 160,000 Contingency www.premierafricanminerals.com CORP
Slide 30: Operating cost breakdown $/t Processed
Operating cost breakdown $/t Processed $80/t Processed 1.95 1.00 6.20 Mining 13.78 Mining infrastructure Labour 47.09 Rehab Provision Processing 2.41 8.50 Tailings G&A Transport - www.premierafricanminerals.com CORPORATE PRESENTATION, December 2014 30
Slide 31: Operating cost breakdown - $/mtu
Operating cost breakdown - $/mtu $96/mtu 2.31 1.19 7.35 Mining 16.35 Mining infrastructure Labour 55.86 Rehab Provision Processing 2.86 10.09 Tailings G&A Transport - www.premierafricanminerals.com CORPORATE PRESENTATION, December 2014 31
Slide 32: Why Tungsten?
Why Tungsten? World tungsten demand is growing at an annual rate of approximately 4-5%. World supply declined from 90,800 metric tonnes in 2006 to 72,000 tonnes in 2013. A strategic metal that is essential in such applications as steel tools and cutting blades, defence applications, alloys, lighting
Slide 33: Investments: Circum Minerals Ltd
Investments: Circum Minerals Ltd Premier holds 2 million shares in Circum Minerals with a fair value of $2m Circum Minerals Ltd. is a private company focused on the acquisition and development of potash assets. The Company is currently developing its 100% owned Danakil Potash Project, located in the
Slide 34: Investment Summary
Investment Summary Near-term tungsten production investment Off-take interest could secure future earnings, close to reaching formal agreements with potential off-take partners Mining Study outlines robust economics of RHA: low-capex investment, near-term cash flow, positive APT/tungsten deman
Slide 35: Contacts
Contacts PREMIER AFRICAN MINERALS George Roach, Chairman & CEO Pamela Hueston, Finance Director E: info@premierafricanminerals.com www.premierafricanminerals.com CORPORATE PRESENTATION, December 2014 35
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