admin“Subject to funding, the first phase production will commence mid-2012.
“The conclusion of our indigenisation project is imminent at Pickstone and the continued strength in the gold price indicates a strong profitability will be enjoyed throughout the various phases of the mining envisaged,” he said.
The company says it has remained committed to full compliance with Zimbabwe’s indigenisation regulations.
“We have agreed a structure in principle that will indigenise our first producing asset, yet still return a very respectable investment to ACR,” he said.
“The prime beneficiaries are the local community, our loyal staff and a number of businessmen who have travelled the road with ACR as stakeholders since our inception.
“The empowerment in our situation is real and deserved, making the solution an elegant one and highly practical.”
The company also indicated that, as an extension of this structure, a significant proportion of the indigenised profit is likely to be re-invested in later-stage projects as fully paid equity.
ACR was confident that it would raise funding and would announce its progress within the next quarter, he said.
Meanwhile, the company reported that 10 700 metres of drilling, to upgrade current Joint Ore Reserves Committee (Jorc) compliant resource of one million troy ounces, had been undertaken at its Gadzema gold project.
These results will be released in the first quarter of next year.
ACR believes that the total project resource was likely to be higher and the Gadzema gold project could develop into a major mine.
“However, the ongoing resource definition would run in parallel with research on the funding of such a large-scale operation, given the internationally perceived political risk to finance opportunities in Zimbabwe,” said the company.
It is anticipated that the bulk of the future funding would be sourced from the near-term production at Pickstone.
ACR last week reported a loss of $1,7 million in the six months to 30 September 2011.
Online Reporter