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Business Reporter
Metallon Gold Corporation has been forced to revise downwards its 150 000 ounces target for this year by 30 percent, as grade challenges at some of its mining units and erratic power supply continue to affect its operations.
In a statement on Wednesday, Metallon’s gold production for the third quarter 2015 was 23 999 ounces from 23 759 of the previous quarter.
Gold production, however, was less than the same period last year due to equipment breakdowns at Shamva, Mazowe and Arcturus Mines.
The gold mining group said key equipment has been replaced over the period but this resulted in greater capacity restoration CAPEX.
“Increased power interruptions is impacting both underground production and plant processes. Metallon is looking at possible solutions to supplement grid power supply.
“There are grade challenges at Arcturus and Mazowe Mines and measures are being taken to address the challenges and improvements to grade and tonnage are expected in the coming months,” Metallon said.
“Due to the reasons outlined above and power supply interruptions continuing to affect production across all operations, Group production guidance of 150 000 ounces for 2015 is therefore reduced by approximately 30 percent.”
In 2015 year to date, gold production was 72 142 ounces which is a one percent increase than the same period in 2014, which was 71 406 ounces.
The group’s costs and all in sustaining costs for the third quarter $788 and $1 161 per ounce respectively.
The AISC includes capital expenditure across all mining operations.
On operations, Redwing Mine has successfully resumed operations after de-watering the mine to seven level while development work is being carried out on six level for six months.
Metallon said the first gold production in eight years from underground mining is expected during November and de-watering will continue to open up more reserves in the lower levels of the mine.
“The reopening of Redwing Mine since discontinuing operations in 2008 will bring many major social and economic benefits to the local region and the country.
“Employment is one of these benefits, with the mine employing over 500 staff at opening and over 700 employees once the mine reaches installed capacity in H2 2016. Redwing Mine will also contribute to the national economy through royalties, taxes and investment,” said the gold mining group.
Construction on the Mazowe Mine Sands Retreatment Project is almost complete and there have been some unforeseen equipment delays and target commissioning is now expected for early January 2016.
According to the mining company, work on the new tailing facilities at both Mazowe and Shamva Mine is progressing as planned and barring any unforeseen disruption expected from the wet season, the facilities should be ready for use in early 2016.
Metallon chief executive Mr Ken Mekani said despite a challenging quarter and unexpected power interruptions, Metallon has achieved substantial gold production and made good progress on the new projects.
He said the last twelve months have been pivotal as they made significant upgrades and investments into the business with an equipment replacement programme and improved operational efficiencies.
“We are extremely pleased with the re-opening of Redwing Mine.
“Resuming operations has involved a great deal of work and I would like to congratulate our team for their efforts and dedication. Redwing Mine will contribute significantly in terms of social and economic benefits and furthermore demonstrates our commitment to investing in Zimbabwe,” said Mr Mekani.
He said successful completion of projects will continue to demonstrate the company’s ability to deliver as it targets long term growth objectives.
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