Ashly DhaniOliver Kazunga
Business Writer
TORONTO Stock Exchange-listed Pambili Natural Resources Corporation, which is developing one of the gold operations in Matabeleland Province — Golden Valley Mine, has completed some underground development in preparation for operations restart.
In November last year, Pambili entered into a share purchase agreement to acquire the Golden Valley project, near Bulawayo from White Satin Investments (Private) Limited.
Recently, Pambili was reported to have entered into a strategic partnership with the Southern Africa-focused metals and exploration firm, Kavango Resources plc which is listed on the London Stock Exchange to revive operations at Golden Valley. In a latest update, Pambili announced the production of its first gold at Golden Valley although formal mining has yet to restart.
“The company has produced its first gold from its Golden Valley Mine in Zimbabwe’s Matabeleland Province.
“Although formal mining has yet to re-start at Golden Valley, Pambili has completed some underground development in preparation for the drilling programme, which is due to start later this month.
“Some 630 tonnes of material from this underground development, together with historic sands on the surface, were processed through the Golden Valley plant to recover 235 gramme (7,5 ounces) of gold at a recovery of 0,52 grammes per tonne,” it said.
The imminent restart of the toll-milling operation, together with further clean-up of historic sands on the site, is expected to yield additional gold before underground mining begins.
However, given the nature of the material being processed, the company is not yet able to predict what the yield would be.
Pambili chief executive officer, Jon Harris, said: “The first gold production from the Golden Valley project really is exciting news for Pambili.
“The decision to process material from the off-reef underground development was based on the visible mineralisation observed within that material and the experience of the local team. “The fact we were able to produce gold from this off-reef material and the reworking of old sands supports our belief in the upside potential of Golden Valley.
“As recommended in the recent technical report, the company will endeavour to establish the true extent of this potential through our planned underground and surface drilling programs, both of which will commence this month.
“As we continue to learn more about its large-scale potential, Golden Valley stands to become an increasingly valuable asset for Pambili.”
The mining industry is one of Zimbabwe’s major economic centrepieces accounting for over 75 percent of the national export earnings while gold is the country’s single largest export expected to contribute US$4 billion going forward annually from about US$2,7 billion in 2018.
In 2022, the country produced a record 35,3 tonnes of the yellow metal while output last year plummeted to 30,1 tonnes due to operational challenges small-scale miners faced power constraints, among other challenges.
The Government has committed to address the headwinds facing the mining sector from which a gold target of 40 tonnes has been set this year.
Bongani Ndlovu