daniel chigunwe
Oliver Kazunga
Business Writer
PAMBILI Natural Resources Corporation says its gold consolidation strategy in Zimbabwe is bearing fruit evidenced by the revenue outurn reported from gold sales achieved in the quarter at the firm’s Golden Valley Mine project.
Recently, the Toronto Stock Exchange-listed mining group brought the production plant at Golden Valley Mine project, situated near Bulawayo, back on line.
In a statement, Pambili which has identified a new high grade vein at the mine following a six-hole drilling programme aimed at identifying a gold resource that can be brought into production, said gold sales from the local asset were just over CAD$60 000 (equivalent to US$41 699) in the third quarter this year.
“Revenue numbers demonstrate progress on our Zimbabwe gold consolidation strategy. During the third quarter of 2024, Pambili reported gold sales of just over CAD$60 000 primarily through our onsite toll milling operations at Golden Valley Mine.
“Until we start processing our own ore, these quarterly revenue figures are based on the variable grade of ore that passes through toll-milling plant at Golden Valley, and are likely to fluctuate.
“However, it demonstrates that an ongoing revenue stream that helps to support Pambili’s in-country operating costs — which include the underground drilling programme at Golden Valley, and the due diligence on the option to purchase the London Wall group of mines,” it said.
Last year in November, Pambili announced that it had entered into a share purchase agreement to acquire the Golden Valley project from White Satin Investments (Privvincate) Limited signifying a critical moment in the firm’s growth plan.
The group’s chief executive officer Jon Harris said: “This third-quarter revenue demonstrates genuine progress for Pambili.
“These gold sales help offset our expenses in Zimbabwe, as we assess Golden Valley’s commercial gold potential through our drilling programme and determine our prospects with London Wall.”
Last month, Pambili announced the signing of a 12-month Option Agreement with Long Strike Investments (Private) Limited to acquire gold claims and surrounding mines in Gwanda, Matabeleland South Province.
Under the Option Agreement, the mining group intends to acquire 21 gold assets in Matabeleland region that are owned by Long Strike Investments.
The 21 gold claims cover 173 hectares and include the previously producing London Wall and Jessie mines.
During the term of the Option Agreement, Pambili will conduct extensive due diligence and exploration of the claims, and should the mining group exercise the Option, the total acquisition cost of the mines and claims will be US$1 million.
The above amount would be satisfied through a combination of cash and Pambili shares.
Gold is Zimbabwe’s single export expected to generate US$4 billion next year going forward underpinned by new investments in the gold sub-sector, re-opening of closed mines as well as expansion projects.
Some of the gold mines that have been re-opened in line with the Government’s thrust to ramp up production include Eureka Gold Mine in Guruve, Mashonaland Central Province, the Pickstone Peerless project which is under redevelopment and expansion in Kadoma, in Mashonaland West.
Mines such as Shamva Gold Mine, a subsidiary of Kuvimba Mining House (KMH), are working towards ramping up production undertaking exploration and mining expansion programmes.
Recently, KMH announced that it was seeking US$150 million to set up processing facilities and transform Shamva into a world-class resource.
Currently, Zimbabwe is generating about US$3 billion annually from gold exports.
Last year, Zimbabwe produced 30,1 tonnes of the yellow metal against 35,3 tonnes delivered in 2022.
The Government is targeting 35 tonnes this year and according to Fidelity Gold Refinery, Zimbabwe’s exclusive buyer of the yellow metal, in the first 11 months of 2024 a total of 32 tonnes were produced.
Bongani Ndlovu