- Premier African Minerals (PREM) shares edged higher on assay results.
- However, investors largely ignored the results given the pending assays.
- PREM can capitalise on the high demand for lithium through its pilot project.
The Premier African Minerals Ltd (LON: PREM) share price increased after the company released new assay results from the drilling campaign at its Zulu Lithium and Tantalum mine. The company released assay results from three drill holes, with most holes having more than one assay result.
Investors muted reaction to the announcement was evidenced by the lack of movement in PREM shares even as the mining company reiterated that the new assay results reaffirm its decision to proceed with its pilot plant. However, many have expressed concerns about the impact of the pilot plant on the Zulu lithium and tantalum project’s future output.
The company has admitted that proceeding with the pilot plant could inhibit future recoveries of deposits of lithium and tantalum from the Zulu mine. However, proceeding with the project will allow the company to start generating revenues much faster than if the miner waited to complete its definitive feasibility study (DFS) before starting mining activities.
Premier African Minerals further announced that it had decided to suspend all further resource drilling until it receives the outstanding assay results from various laboratories, with over 2,000 assay results still pending. Overall, the assay results should have triggered a better response from investors. Still, such a reaction was hampered by the pending assay results.
George Roach, Premier African Minerals CEO, commented: “I am pleased to share further assay results from Zulu. It is well worth noting ZDD114 in particular. These very pleasing results are further confirmation of our decision to go ahead with the construction of the pilot plant at Zulu. As mentioned in the RNS dated 26 August 2022, work is progressing well with the installation of the pilot plant, and we remain on target for hot commissioning in Q1 of 2023.”
Premier African Minerals is in a unique position since it will start producing lithium soon under the pilot facility to capitalise on the massive demand for lithium globally or use in electric cars and other sustainable energy ventures.
*This is not investment advice.
PREM share price.
The Premier African Minerals (PREM) share price edged 1.67% higher to trade at 0.366p, rising from Tuesday’s closing price of 0.360p.