adminChegutu-based gold producer Pickstone-Peerless Gold Mine, has commenced operations with its first gold smelt producing 8,5 kilogrammes of gold bullion set to be delivered to Fidelity refinery.
The gold mine is a 50-50 joint venture between AIM-listed resource development and production company Vast Resources and Grayfox Investments (Pvt) Limited.
Announcing the development, Vast Resources said “production has commenced at its 584-hectare Pickstone-Peerless Gold Mine in Zimbabwe with its first gold smelt producing 8,5kg of gold bullion, which will be delivered to the Fidelity refinery in Harare.”
The Pickstone Peerless gold mine historically used to produce 400 000 ounces of gold a year, and management maintains earlier expectations of annualised gold production of between 10 000 and 12 000 ounces of gold from the initial mining rate of 10 000 tonnes per month.
“Initial production is on-track at a rate of 10 000 tonnes of ore per month from the open cast oxide gold cap, with an estimated life of six years.
“During this period, expansion of the plant to treat the open cast sulphides, at a rate at least double the current monthly volume, will be evaluated,” said Vast Resources in a statement.
The gold mine has a has a current JORC Resource of 62 million tonnes grading 1,8g/t, containing 3,56 million ounces of gold.
Included in this resource is an open-pittable Ore Reserve of 16,6Mt grading at 1,9g/t for 1,02 million ounces.
Vast Resources CEO Mr Roy Pitchford said the week has been a particularly positive one for the resources firm following another development in which its Manaila mine in Romania sold its first copper concentrate on Monday.
“This is a historic week for Vast Resources. ith Pickstone-Peerless and Manaila now both in production, producing gold and copper respectively, we are firmly on track to build a significant cash generative mining company.
“With an established resource of in excess of 3,5 million ounces and a defined development strategy, Pickstone-Peerless has significant commercial value, and I am confident that we will continue to extract value for the benefit of all shareholders.”
Including the Pickstone-Peerless gold mine, Vast Resources has a number of interests in various commodities including gold, phosphates and diamonds at various stages of development across Zimbabwe. – BH 24.
Online Reporter