The Premier African Minerals Ltd (LON: PREM) share price plunged 6.81% after releasing positive assay results from its Zulu Lithium and Tantalum Project. The company also told investors that the construction of the pilot plant remained on course.
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The market's mixed reaction to today’s update could be attributed to investors taking profits from their existing positions following a two-day rally. PREM shares had fallen significantly from Tuesday to Thursday last week before rallying higher on Friday and Monday this week.
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The lithium mining company had intersected multiple thick high-grade spodumene zones. The firm noted that the mineral-bearing sections had high levels of spodumene content, especially within the thickest pegmatite north and south of River Machakwe.
Investors initially cheered the announcement as PREM shares edged higher before reversing course and heading lower into negative territory at the time of writing.
Some of the assay results generated at the Zulu project include 1.15% Li2O from 209.30m to 215.50m, with 32 Ta2O5 ppm and 1698 Rb ppm. This was just one of the many upbeat assay results generated from the boreholes drilled at the site.
The assay results will be used in the updated mineral resource estimate (MRE), which will be used within the definitive feasibility study (DFS).
George Roach, the Premier African Minerals’ CEO, commented: “These assay results are further confirmation of the integrity of the ore body. At the same time, we continue to receive XRD analysis that supports our conclusions that the main pegmatite ore body is predominantly spodumene. To add context to this, when the source of Lithium in an ore body is 100% spodumene, a grade of 1% Li2O would indicate 12.5% pure spodumene and approximately 16% SC6 when recovery is 100%. Whilst results, as they become available, will support new overall resource estimates, our single-minded focus at present is to bring the Pilot Plant to production…”
PREM shares continue to trade volatilely, which does not reflect the company’s operations but represents the battle between the bulls and bears. I wouldn’t buy the shares under the current circumstances.
*This is not investment advice.
Premier African Minerals (PREM) share price.
The PREM share price plunged 6.81% to trade at 0.49p, falling from Monday’s closing price of 0.53p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.