AFRICA'S NEXT LITHIUM DEVELOPER - Africa's Next Lithium Developer MARCH 2021 - Premier African ...
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AFRICA’S
NEXT LITHIUM
DEVELOPER
Africa’s Next Lithium
Developer
MARCH 2021
June 2021
PREMIER AFRICAN MINERAL S
Disclaimer
The information contained in this document has been prepared based upon This Document should not be considered as the giving of investment advice
information supplied by Premier African Minerals Limited “the Company”. This by the Company or any of its shareholders, directors, officers, agents,
Document does not constitute an offer or invitation to any person to employees or advisers. Each party to whom this Document is made available
subscribe for or apply for any securities in the Company. must make its own independent assessment of the Company after making
such investigations and taking such advice as may be deemed necessary. In
particular, any estimates or projections or opinions contained in this
While the information contained in this Document has been prepared in good Document necessarily involve significant elements of subjective judgment,
faith, neither the Company nor any of its shareholders, directors, officers, analysis and assumptions and each recipient should satisfy itself in relation to
agents, employees or advisers give any representations or warranties (express such matters.
or implied) as to the accuracy, reliability or completeness of the information in
this Document, or of any other written or oral information made or to be
made available to any interested party or its advisers (all such information This Document may include certain statements that may be deemed
being referred to as “Information” and liability therefore is expressly forward-looking statements. All statements in this discussion, other than
disclaimed. statements of historical facts, that address future activities and events or
developments that the Company expects, are forward-looking statements.
Although the Company believes the expectations expressed in such forward-
Accordingly, to the full extent permitted by law, neither the Company nor any looking statements are based on reasonable assumptions, such statements
of its shareholders, directors, officers, agents, employees or advisers take any are not guarantees of future performance and actual results or
responsibility for, or will accept any liability whether direct or indirect, express developments may differ materially from those in the forward-looking
or implied, contractual, tortious, statutory or otherwise, in respect of, the statements. The Company, its shareholders, directors, officers, agents,
accuracy or completeness of the Information or for any of the opinions employees or advisers, do not represent, warrant or guarantee, expressly or
contained in this Document or for any errors, omissions or misstatements or for impliedly, that the information in this Document is complete or accurate. To
any loss, howsoever arising, from the use of this Document. Neither the issue of the maximum extent permitted by law, the Company disclaims any
this Document nor any part of its contents is to be taken as any form of responsibility to inform any recipient of this Document of any matter that
commitment on the part of the Company to proceed with any transaction subsequently comes to its notice which may affect any of the information
and the right is reserved to terminate any discussions or negotiations with any contained in this Document. Factors that could cause actual results to differ
person. under no circumstances will the Company be responsible for any materially from those in forward-looking statements include market prices,
costs, losses or expenses incurred in connection with any appraisal or continued availability of capital and financing, and general economic,
investigation of the Company. In furnishing this Document, the Company market or business conditions. Investors are cautioned that any forward-
does not undertake or agree to any obligation to provide the recipient with looking statements are not guarantees of future performance and that actual
access to any additional information or to update this Document or to results or developments may differ materially from those projected in forward-
correct any inaccuracies in, or omissions from, this Document which may looking statements.
become apparent.
June 2021 PREMIER AFRICAN MINERALS | AIM : PREM 2
COMPANY
Overview
PROFILE STRATEGY KEY PROJECTS VALUE
AIM-listed mining and Expanding the Large Zulu Lithium (205km² license Scoping Study demonstrates
exploration company Resource base at Zulu Area) a robust project with
Lithium and Deliver a attractive economics Zulu
Developing lithium, tungsten Feasibility Study RHA Tungsten Project Lithium & Tantalum
and industrial minerals
Bringing RHA into Emerging Tungsten Miner
Experienced management commercial production RHA Tungsten Project
team
Board with track record of Diversify into cash A US$6.25 million
successful mineral generative assets shareholding in Circum
developments Minerals Limited, a private
Expand Board and potash developer
Technical skill base
A 19% interest in the
producing Otjozondu
Manganese Mine
June 2021 PREMIER AFRICAN MINERALS | AIM : PREM 3
COMPANY
Share Capital
DAILY SHARE PRICE AND LIQUIDITY SINCE JAN 2020
52 WEEK SHARE PRICE
0.400 0.02- 0.49 pence
AIM Closing Price (pence)
0.300
MAJOR SHAREHOLDERS
0.200 James Goezee – 7.1%
George Roach -7.0%
0.100
0.000 AVERAGE DAILY
Jan-20 Mar-20 May-20 Aug-20 Oct-20 Dec-20 Mar-21 TRADING VOLUMES
Capital Structure as of 19 March 2021
Share Price 0.23 pence 2020 Q4 171,986,769
2020 Q3 87,692,251
2020 Q2 161,137,077
Shares Outstanding 17,793,009,831
2020 Q1 165,418,794
Market Capitalisation £40.9 million
June 2021 PREMIER AFRICAN MINERALS | AIM : PREM 4
COMPANY
Board of Directors
Highly experienced Board with extensive experience in exploration, development and mining
George Roach Extensive experience in natural resource business development in Africa. He has held positions
CEO in and/or initiated a number of start-up businesses listed on AIM and/or TSX-V.
Trained with PwC and has been involved in growing mining ventures, both as an executive
(including Antofagasta plc, Brancote Holdings plc and UraMin Inc.) and as a manager of
Neil Herbert investments (including Galahad Gold plc and Polo Resources Limited). Mr. Herbert has served
Chairman as a director of companies on the AIM, ASX, LSE, JSE and TSX and was previously a director of
Premier between 20 August 2013 and 22 April 2016.
Mr Hampel has 27 years' experience in the African, American, European and Asian exploration
Wolfgang Hampel and mining industry and holds a Diploma in Economic Geology (Dipl.-Geol.) from the
Non-Executive Director Technical University of Munich. He is a registered European Geologist (EurGeol), n° 1261, with
the European Federation of Geologists.
Zimbabwean national with extensive experience in business. Mr Manhambara is currently Chief
Executive of Beta Holdings, the largest Brick and tile manufacturer in Zimbabwe. Mr
Godfrey Manhambara Manhambara was formerly Chief Executive of Affretair, an international cargo commercial
Non-Executive Director airline that operated out of Harare. In 1999, Mr Manhambara was appointed as Chief
Executive Officer of the Civil Aviation Authority in Zimbabwe a position he held until 2001.
June 2021 PREMIER AFRICAN MINERALS | AIM : PREM 5
EXPLORA TION PROJECTS
Southern African Assets
Tinde Project
Fluorite & Barite
Katete Project
Rare Earths
RHA Project
Tungsten
Zulu Project
Lithium & Tantalum
June 2021 PREMIER AFRICAN MINERALS | AIM : PREM 6
EXPLORA TION PROJECTS
In Southern Africa
Project & Mineral Geology Status Update / Potential
ZULU PROJECT
Lithium & Tantalum Two pegmatite zones totaling 3.5km in length DFS commenced May 2021 with appointment
with lithium oxide (Li₂O) grades up to 4.24%, of engineering practice and construction of
tantalum oxide (Ta₂O₅) to 1,037 ppm; newly exploration camp. Resource expansion and
discovered step-out zones add another definition drilling commencing late June.
+2.5km strike length. Expanded exploration into the 205km² EPO
region commenced and further resource
expansion anticipated.
TINDE PROJECT
Fluorite & Barite Numerous, up to 3m wide, hydrothermal Potential for bulk, open pit mining.
fluorite veins in granites and gneisses. Small
scale industrial mining took place until the
1970s.
KATETE PROJECT
Rare Earths A large carbonatite, 37.5km² in size, with light Best total rare earth oxides (TREO) surface grab
rare earth, neodymium rich mineralisation in sample analysis of 14.6%, with up to TREO of 3%
both outcrop and cores. in drill cores.
June 2021 PREMIER AFRICAN MINERALS | AIM : PREM 7
EXPLORA TION PROJECTS
Zulu Lithium Project
EPO (Exclusive Prospecting Order) for larger
tenement over the Zulu project was granted on 12
March 2021
EPO covers 205km² surrounding the Zulu Lithium and
tantalum project
Zulu Lithium and Tantalum project lies in a highly
mineralised pegmatite belt located 80km east of
Bulawayo
Maiden Mineral Resource Estimate of 20.1 million
tonnes of 1.06% Li₂O and 51 ppm Ta₂O₅ using a cut-
off grade of 0.5% Li₂O and 7 million tonnes at 1.50%
Li₂O using a cut-off grade of 1.1% Li₂O
Metallurgical testwork on spodumene pegmatite
achieved a lithium recovery of 81.8%
Initial Exploration Target of 60-80 million tonnes in
Main Zone and on-going drill intersections in the New
Zone indicating the potential to add substantial new
tonnes to the Resource base
Scoping Study demonstrated a robust project with
attractive economics for both the Concentrate Sales
option US$127.3M NPV10 and 85.9% IRR and Lithium
Carbonate Plant option US$718.9m NPV10 and 80.4%
IRR
Premier is now commencing a feasibility study on the
project.
June 2021 PREMIER AFRICAN MINERALS | AIM : PREM 8
EXPLORA TION PROJECTS
Zulu Lithium
June 2021 PREMIER AFRICAN MINERALS | AIM : PREM 9
ZULU LITHIUM PROJECT
Mineral Resource Estimate
Maiden Mineral Resource Estimate of 20.1 Tonnes Grade Li₂0 Contained Li₂0
Category
million tonnes of 1.06% Li₂O and 51 ppm Ta₂O₅ (millions) % in tonnes
using a cut-off grade of 0.5% Li₂O
Measured - - -
Containing 526,000 tonnes of Lithium
Carbonate Equivalent (“LCE”) and 1,025 Indicated - - -
tonnes of Tantalum Pentoxide
Inferred 20,112,736 1.06 213,195
Maiden Resource Estimate covers only 35% of Total 20,112,736 1.06 213,195
original Zulu claim’s known 3.5km surface strike
length and drilling continues to upgrade and Drill cores containing lithium mineralisation
expand the Mineral Resource Estimate
Notes:
Deposit remains open at depth and along 1. Premier is the operator of the Zulu Lithium and Tantalum Project
strike (“Zulu”).
2. Premier currently holds 100% interest in Zulu.
3. Mineral Resources which are not Mineral Reserves have no
Initial Exploration Target of 60-80 million tonnes demonstrated economic viability.
4. The effective date of the Mineral Resource is 01 June 2017.
5. Mineral Resources for Zulu have been calculated using a cut-
off of 0.5% Li₂0 and classified according to SAMREC.
6. The Mineral Resource Estimate is based on information
compiled by the Company and reviewed by Mr Wolfgang
Hampel (as described further below).
June 2021 PREMIER AFRICAN MINERALS | AIM : PREM 10ZULU LITHIUM PROJECT
Metallurgical Testwork
Metallurgical testwork was conducted by German
based Dorfner Anzaplan
Flotation testwork on spodumene pegmatite achieved
a lithium recovery of 81.8%
Flotation testwork on mixed pegmatite sample
achieved a spodumene concentrate containing 5.9%
Li₂0 being acceptable for spodumene concentrates as
feed stock for lithium carbonate production and a
commercial grade petalite concentrate containing
3.9% Li₂0 at exceptionally low Fe₂0₃ content of < 0.01%
at a recovery in the concentrates of an estimated 70%
The tailings of spodumene and petalite flotation
process contain very low iron oxide concentrations in
the range of 0.01%, offering the potential for high
quality, low iron feldspar and quartz as by-product for
glass and ceramics applications From left to right:
lepidolite spodumene pegmatite @ 0.94% Li2O and 42 ppm Ta2O5
Further metallurgical testwork is planned including
testwork on the recoveries of lithium bearing minerals, spodumene (pink) pegmatite @ 2.09% Li2O and 106 ppm Ta2O5
the recovery of saleable tantalite concentrates and petalite pegmatite @ 2.39% Li2O and 46 ppm Ta2O5
high purity, low iron oxide quartz and feldspar holmquistite gneiss / amphibolite and pyrite @ 0.55 % Li2O
concentrates as well as optimise the flowsheet design
June 2021 PREMIER AFRICAN MINERALS | AIM : PREM 11ZULU LITHIUM PROJECT
Proposed Flowsheet Design
June 2021 PREMIER AFRICAN MINERALS | AIM : PREM 12ZULU LITHIUM
Scoping Study
A robust project with compelling economics
Concentrate Sales Option Lithium Carbonate Plant
Mine life 15 years Project life 15 years
84,000 tonnes of spodumene Target Annual Production 14,500 tonnes of Li₂CO₃
Target Annual Production concentrate and 32,500 tonnes
of petalite concentrate
Pre-Tax NPV10 US$719 million
Pre-Tax NPV10 US$127 million
Pre-Tax IRR 80%
Pre-Tax IRR 86%
Gross Revenues US$2.9 billion*
Gross revenue US$1 billion*
Capital Costs Initial Capital Cost
US$64 million US$238 million
(including 30% contingency)
(including 30%
Contingency) C1 Operating Costs US$1.1 billion
C1 Operating Cost US$486 million
Peak Funding Requirement US$178 million
Peak Funding Requirement US$38 million
Payback 2 years
Payback 2 years
After-Tax NPV at 10% US$524 million
After-Tax NPV at 10% US$92 million
After-Tax IRR 65% After-Tax nominal IRR 63%
* based on sales prices of US$800/t spodumene concentrate and US$400/t petalite
concentrate over life of mine * based on a sales price of US$15,000/t Lithium Carbonate
June 2021 PREMIER AFRICAN MINERALS | AIM : PREM 13ZULU LITHIUM
Drill Hole ZDD-45
Intersected 40.58m containing an average
grade of 1.56% Li₂O in multiple intersections
Including 0.95m at 4.24% Li₂O
ZDD-45 drilled 220m south-east of the Main
Zone demonstrate the potential for an
additional 60-80m tonnes in this Step-out Zone
An infill drilling programme is planned to
expand the current mineral resource base
June 2021 PREMIER AFRICAN MINERALS | AIM : PREM 14ZULU LITHIUM
valuation
MarketCap/Resources
$800.00
$600.00
$400.00
$200.00
$63.90
$70.08 $81.11 $185.26 $192.18 $245.28 $295.19 $465.40 $504.34 $695.00
$0.00
Firefinch - Premier - Zulu Prospect Critical AVZ - Premier - Zulu Liontown - Sayona - Core Lithium - Pilbara
Bougouni potential Resources - Elements - Manono (US$52m) Kathleen Authier Finess Minerals -
(US$32m) 70Mt 1.06% Arcadia - Rose 31.04Mt (US$457m) ($645m) (US$94m) (US$95m) Pilangoora
(US$46m) 1.04% (US$2.950m)
June 2021 PREMIER AFRICAN MINERALS | AIM : PREM 15PREMIER AFRICAN MINERAL S
Investment Highlights
Delineated a 20.1 million tonnes at 1.06% Li₂O
Maiden Mineral Resource Estimate at Zulu –
resource on only 1/3 of the strike length
Metallurgical testwork achieves commercial
grade concentrate and recovery of 81.8% on
spodumene at 6.5% Li₂0
Zulu - Scoping Study demonstrates a robust
project with attractive economics
EPO award is a step change for the project
Shareholding in Circum valued at US$6.25m
Significant minority interest (19%) in the operating
Otjozondu Manganese mines
Diversified natural resources company with a
portfolio of significantly undervalued projects
Experienced board and management team with
a proven track record of successful
development of mineral projects on the African
continent
June 2021 PREMIER AFRICAN MINERALS | AIM : PREM 16COMMODITY
Lithium Raw Materials
Lithium raw materials are the vital ingredient for
lithium battery technology
Lithium is sourced predominantly from:
Hard-rock mining of spodumene deposits
Extracting lithium from brine deposits
Zimbabwe is historically the world’s 5th largest
producer of lithium mineral concentrate Spodumene Concentrate Production
The Zulu deposit is among Zimbabwe’s largest
lithium-tantalum projects with Inferred
Resources of 20.1 Mt at 1.06% Li₂0 and 51 ppm
Ta₂0₅ containing 526,000 tonnes of Lithium
Carbonate Equivalent (“LCE”) and 1,025
tonnes of Tantalum Pentoxide
Spodumene and petalite ore is processed into
a concentrate and then converted into lithium
carbonate or lithium hydroxide to be utilised in
lithium battery components Battery Tesla Model S
June 2021 PREMIER AFRICAN MINERALS | AIM : PREM 17COMMODITY
Lithium Market
Lithium Supply / Demand Balance
Source: UBSe A sunny day in Shanghai
Pollution has driven Government policies towards
Decarbonisation and “Net Zero” emission policies
“New Energy”
have significantly accelerated demand for lithium
Lithium carbonate pricing took-off
Despite supply side increases, the incremental
coincidentally with acceleration in EV’s and
increase in demand will see a deficit forming in 2024 –
Electric Bus sales
based on base case projects
Broad transportation electrification Projects
Significant lack of new commercial projects in the
pipeline to meet expected demand 99 million electrical vehicles sold pa by 2020
By 2050, 81% of global car sales will be electric*
* Source Reuters, Morgan Stanley,
June 2021 PREMIER AFRICAN MINERALS | AIM : PREM 18Contact Information For additional information or enquiries, please contact: George Roach - CEO info@premierafricanminerals.com www.premierafricanminerals.com June 2021 PREMIER AFRICAN MINERALS | AIM : PREM 19
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