malvernmugadzikwa
Business Writer
Dallaglio Investments is looking to develop an open-cast gold mine at its Giant Gold claims in Chegutu, southwest of Harare with feasibility studies already underway.
Dallaglio is 50,1 percent owned by Victoria Falls Stock Exchange-listed Padenga Holdings.
Some of its assets are Pickstone Peerless Mine, Eureka Gold Mine and Blue Rock claim.
Dallaglio became the ultimate beneficiary of Giant Mine gold claims after acquiring and investing US$14 million into Pickstone Peerless.
Pickstone general manager, Mr Alfred Madowe, said the indicative grades for the open cast were encouraging.
“Feasibility assessment is currently underway and significant exploration drilling has already been conducted,” Mr Madowe said during a recent media tour at the mine.
He said indicative grades of 2,3 gramnes per tonne have been established. In the longer term, the company will “assess” the company’s Blue Rock claims near Chegutu.
He said geology reports indicate the claims could contain 754 000 ounces of gold.
Feasibility studies of underground mining at Eureka Mine are also underway, he added.
An extensive shaft and surface infrastructure project was being undertaken to reopen the existing underground mine at Pickstone. The project would cost US$18 million and is on target to commence underground production by April 2023.
The underground mining project at Pickstone aims to replace the open pit mine, whose lifespan will end this year. The project is expected to create over 400 new jobs.
Last year, output reached 35,38 tonnes, a 19,5 percent increase from 2021, according to statistics from Fidelity Gold Refiners, a subsidiary of the Reserve Bank of Zimbabwe which buys all the country’s gold output.
A combination of incentives and new mining projects helped to lift production to record levels, with the industry poised for further growth. Changes in the payment methods, a number of incentives, and increase in the number of buying centres across the country resulted in sustained growth in the production of gold.
Last year, Zimbabwe extended an incentive for the country’s biggest gold miners to produce above state-set output targets. Large producers that exceed their goals will receive 80 percent of the payment for the additional output in foreign currency.
The government also scrapped taxes on small-scale miners to encourage deliveries through formal channels. In the past, gold producers faced challenges of delayed payments and low prices. However, payments are now timeous, with small scale miners getting their money in US dollars. Prices are now in line with those on international markets.
Bongani Ndlovu