Circum Minerals Ltd Update

RNS Number : 7121M

Premier African Minerals Limited

11 May 2015

 

Premier African Minerals Limited / Ticker: PREM / Index: AIM / Sector: Mining

For immediate release

11 May 2015

Premier African Minerals Limited ("Premier" or "the Company")

Circum Minerals Ltd Update

Premier African Minerals Limited, the AIM-traded, multi-commodity resource and development company focused on Southern and Western Africa, today provides an update on the progress of Circum Minerals Limited ("Circum") in which Premier holds 2 million shares (representing 2.15 per cent of Circum on a fully diluted basis). Circum is the 100% owner of the Danakil Potash Project in the northern margin of the Danakil Depression in Ethiopia and is a private company that reports direct to its shareholders.

The information provided below has been extracted from the announcement made on the 6 May 2015 by the board of Circum ("Circum Announcement"), which can be found here: http://circumminerals.com/sites/default/files/Ethiopian_Danakil_Project_Proves_Up_4.2B_tonnes_of_Potash_0.PDF  

Highlights

The Circum Announcement reported that:

·    The current NI 43-101 compliant mineral resource estimate of the Danakil Project, which covers  about 35% of the licence area to a depth of 400 meters, consists of 2.6 billion tonnes of Measured and Indicated  Resources grading,  19.2 per cent. KCI (the average of the Sylvinite layer, Upper and Lower Carnallitite  layers and the lower Kainitite layer) and 1.6 billion tonnes of Inferred Resources  grading  17.1% KCl;

·     The geologic estimate of the endowment of the remaining 65% of the project area is an additional 7-9 billion tonnes to a depth of approximately 800 meters;

·     Seismic data confirms the continuity of the potash layers throughout the rest of the concession area;

·     Circum is currently in the process of completing a private placing of approximately US$30 million to further fund and progress the project;

·     Circum is in the process of engaging a major international investment bank to provide strategic advice on the options to be pursued to develop and maximize the value of Circum;

·     Circum currently plans to complete its Definitive Feasibility Study in July 2015; and

·     Circum anticipates that the mining licence for the development of the Project will be granted in the second half of 2015 once the Ethiopian Government has reviewed the DFS.

George Roach, CEO, commented:

"Circum's announcement further supports the belief that the Danakil Potash Project has the potential to be a major world-class potash asset. We remain confident that there is the opportunity for a substantial uplift on the current value of Premier's interest in Circum.  We look forward to updating shareholders once the DFS is released in early H2 of this year."

Forward Looking Statements

Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors. A number of factors could cause actual results to differ materially from the results discussed in the forward looking statements including risks associated with vulnerability to general economic and business conditions, competition, environmental and other regulatory changes, actions by governmental authorities, the availability of capital markets, reliance on key personnel, uninsured and underinsured losses and other factors, many of which are beyond the control of the Company. Although any forward looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such forward looking statements.

Enquiries

Pamela Hueston	Premier African Minerals Limited	Tel: [phone]
Michael Cornish / Roland Cornish	Beaumont Cornish Limited (Nominated Adviser)	Tel: [phone]
Jerry Keen/ Edward Mansfield	Shore Capital Stockbrokers Limited	Tel: [phone]
Kelsey Traynor/ Dominic Barretto	Yellow Jersey PR Ltd	Tel: [phone]

Notes

Premier African Minerals Limited (AIM: PREM) is a multi-commodity exploration and development company focused in Southern and Western Africa with near term production at its flagship RHA Project in Zimbabwe.

The Company has a diverse portfolio of projects, which include tungsten, rare earth elements, gold, lithium and tantalum in Zimbabwe and Togo, encompassing brownfield projects with near-term production potential to grass-roots exploration. The Company holds 2 million shares in Circum, the owners of the Danakil Potash Project in Ethiopia, which has the potential to be a world class asset. At present those shares are valued at US$2.5 million based on the latest price at which Circum has accepted subscriptions.

Qualified Person

The technical information contained in this announcement has been reviewed by Bruce Cumming. Mr. Cumming holds a Bachelor of Science (Honours) in Geology from the University of Cape Town and is accredited to the South African Counsel for Natural Scientific Professionals (SACNASP). Mr. Cumming has sufficient geological experience (over 39 years) and is satisfied with the accuracy and precision of this announcement.

Glossary

Upper and Lower Carnallitite layers	Upper Carnallitite - Second potash member of the Houston Formation in the Danakil Depression. A rock consisting of essentially halite and carnallite and may contain anhydrite. Lower Carnallitite - Third potash member of the Houston Formation in the Danakil Depression. A rock consisting of essentially halite and carnallite and may contain kieserite.
Inferred resource	An Inferred Mineral Resource is that part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that may be limited or of uncertain quality and reliability.
Kainitite	Basal and fourth potash member of the Houston Formation in the Danakil Depression. A rock consisting of essentially halite and kainite.
KCI	Chemical symbol for potassium chloride and is the chemical formula for the potash mineral sylvite.
Measured and Indicated Resources	An Indicated Mineral Resource is that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and /or grade continuity but are spaced closely enough for continuity to be assumed. A Measured Mineral Resource is that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence. It is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are spaced closely enough to confirm geological and grade continuity.
NI 43-101	The national instrument for the Standards of Disclosure for Mineral Projects within Canada.
Seismic	A method of investigating subterranean structure, particularly as related to exploration for petroleum, natural gas, and mineral deposits. The technique is based on determinations of the time interval that elapses between the initiation of a seismic wave at a selected shop point and the arrival of reflected or refracted impulses at one or more seismic detectors
Sylvinite	Upper potash member of the Houston Formation in the Danakil Depression. A rock consisting of essentially halite and sylvite.

Ends

 

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