- The Premier African Minerals share price fell 3.44% on assay results.
- Investors barely reacted to the positive assay results amid concerns.
- PREM shares look attractive at current prices.
The Premier African Minerals Ltd (LON: PREM) share price was primarily unmoved after releasing three assay results from hole 75 within its Zulu Lithium and Tantalum Project. The assay results indicated significant lithium, tantalum and rubidium deposits.
The mining company noted that these were just three of the approximately 2,000 assay results it is pursuing from various laboratories. However, investors barely reacted to the results, which allowed the company to upgrade some inferred resource estimates to indicated.
Premier African Minerals confirmed that it was in the final stages of closing the offtake and prepayment deal after signing a binding head of terms agreement with Suzhou TA&A Ultra Clean Technology Co. Ltd to build a large-scale pilot facility at Zulu.
The plant will produce SC6 starting in Q1 2023, yet PREM shares have fallen 16.35% in the past month despite this positive development. Investors seem wary of the deal that could hurt the Zulu mine’s long-term profitability.
George Roach, Premier African Minerals’ CEO, commented: “And again, results continue to please on the upside. These are just a few of more than 2,000 outstanding assays that we are chasing laboratories for. This finishes hole 75, and this is typical of many of the holes intended to elevate the resource confidence level from Inferred to Indicated. Particularly pleasing are the multiple intersections that have passed through steeply dipping mineralised pegmatites. Also pleasing to note that this is precisely the type of ore body best suited to sensor-based sorting, and the application of that technology is likely to improve overall mining efficiencies. At the same time, good progress continues with early mine build. Site earthworks and camp construction is progressing well. Detailed civils design is expected to complete by end July 2022.”
PREM shares are trading above a crucial long-term support level that has been in place since February this year. I would be interested in buying PREM shares if the support level holds in the coming days.
*This is not investment advice. Always do your due diligence before making investment decisions.
Premier African Minerals share price.
The Premier African Minerals share price plunged 3.44% to trade at 0.28p, falling from Monday’s closing price of 0.29p.