Oliver Kazunga
Senior Reporter
Mutapa Gold Resources has completed 88 000 metres of exploration drilling under an accelerated programme expected to deliver a major gold resource upgrade in the third quarter of 2027, as the mining group positions itself for future production growth.
The company has completed nearly 90 percent of its planned 98 000 metres of drilling, with the programme aimed at establishing the extent of its gold deposits to support long-term mine planning and expansion.
Mutapa Gold Resources chief executive Mr Patrick Maseva-Shayawabaya said the exercise would improve the company’s understanding of its gold resources and unlock future value, with Jena Mine also expected to benefit from a resource upgrade in the second half of next year.
Giving the company’s third-quarter and nine-month operational and financial update in Harare on Thursday, he said exploration was critical to addressing information gaps on the country’s gold deposits.
“The cure to that is exploration,” he said.
“We have embarked on an accelerated exploration drilling programme, and thus far we have drilled 88 000 metres out of a planned 98 000 metres.”
The exploration drive comes as Mutapa Gold records strong operational and financial performance, putting it on course to surpass its full-year production forecast of 110 000 ounces.
The company produced 30 160 ounces of gold, equivalent to about 937 kilogrammes, during the third quarter, representing a 40 percent increase from the same period last year.
Revenue rose 39 percent to US$127 million, driven by higher production and improved international gold prices, while profit after tax increased 52 percent to US$45 million from US$29 million in the comparable period.
Mr Maseva-Shayawabaya attributed the production gains partly to improvements in ore grade and gold recovery rates.
For the nine months to September, the average gold grade increased to 1,49 grammes per tonne from 1,36 grammes per tonne in the same period last year, while the recovery rate improved from 82 percent to 85 percent.
During the third quarter, the gold grade rose to 1,5 grammes per tonne from 1,3 grammes per tonne, while the recovery rate increased to 86 percent from 83 percent.
Gold grade measures the amount of gold contained in each tonne of ore, while the recovery rate indicates the proportion of that gold successfully extracted during processing.
Mr Maseva-Shayawabaya said investments in leaching tanks at Freda Rebecca and Jena mines had contributed to the improved recovery rates.
Meanwhile, Mutapa has started implementing its US$240 million Shamva Hill project, which is expected to raise annual production at the operation from 25 000 ounces to about 80 000 ounces towards the end of 2028
