adminTinashe Makichi Business Reporter
ZIMBABWE’s largest gold mining group, Metallon Gold is working towards increasing production through expanding its current operations under its medium term plan, the company said in a statement. The company said feasibility studies are already being undertaken and will be used for proposals of capital expenditure.
Metallon Gold is owned by South African mining magnate Mr Mzi Khumalo and has five gold mines in Zimbabwe which are, How Mine, Shamva Mine, Arcturus Mine, Mazowe Mine and Redwing Mine.
The mining giant is expecting to meet 100,000 ounces production this year against the 2013 production of 82,000 ounces.
Gold production for June this year increased five percent to about 7 400 ounces from 7000 ounces recorded in May this year.
Average cost of production for June was up six percent to about $850 per ounce from $800 recorded in May.
How mine which is Metallon’s flagship mining unit is forecasting production of approximately 52,000 ounces this year against 40,300 ounces of last year.
A new ore body 350N at the mine has been discovered by routine exploration drilling.
Metallon is also planning to start an exploration exercise at its mining leases at How Mine in Bulawayo.
Metallon head of corporate affairs Ambassador Zenzo Nsimbi said the company is planning to start an exploration exercise but still waiting for regulatory approvals.
“How mine proposes to undertake an exploration programme on its mining lease and the process will employ a combination of geochemical soil sampling, trenching, diamond drilling and percussion drilling,” said Ambassador Nsimbi in a statement.
“The programme requires an environmental impact assessment before it is implemented in terms of EMA Act (CAP 20:27).”
How mine is expecting an average cost of production of $625 per ounce against $650 per ounce of the year 2013.
Metallon said ore at Shamva mine is being processed through conventional crushing, milling, gravity recovery and a combination of carbon in solution and carbon in pulp processes.
Shamva mine is forecasting a production of approximately 26,000ounces this year compared to 20,100ounces recorded the previous year.
“After restructuring the company is targeting an average cost of production of $875 per ounce from $1,156 per ounce of 2013.
“There are also plans for an additional open pit potential that was previously scoped by SRK,” said the company.
Redwing Mine is currently being dewatered with exploration and development in place to bring the mine back to capacity of 30,000 ounces per annum.
Metallon said dewatering is set for completion by the fourth quarter of this year.
“Combined underground and sand retreatment operation is currently underway.
“The mine has had an exploration average grade of quartz ore bodies of 5,5grammes per tonne,” said the company.
Conceptual exploration targets in multiple quartz veins at Redwing mine are 58 million ounces.
Arcturus mine which was put on care and maintenance and reopened in October 2013 has had production ramp commenced.
Ore at the mine is being processed through conventional crushing, milling, gravity recovery and a combination of carbon in solution and carbon in pulp processes.
Arcturus mine has a forecasted production of approximately 12 000ounces and an average production cost of $1,150 per ounce in this current year.
Mazowe mine is forecasting a production of approximately 12,000 ounces in this current year against 10,400 ounces of last year.
“We want to increase production through efficient use of capacity,” said the company.
Metallon’s high priority targets remains at Shamva Hill, Mazowe and Redwing Mines.
In the future the company is looking at drilling at Midwinter and Motapa mine as well as doing some exploration in Democratic Republic of Congo and Tanzania.
Online Reporter