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Nelson Gahadza
Senior Business Reporter
Pickstone Peerless Mine intends to invest US$27 million into its second phase of the underground mining project, having already commissioned the first phase for US$22 million earlier this year.
Dallaglio Investments, a subsidiary of Victoria Falls Stock Exchange (VFEX) listed Padenga Holdings, owns Breckridge Investments whose assets include Pickstone Peerless Mine, Giant Gold Mining Claims and Blue Rock Claims.
The underground mining projects at Pickstone are meant to replace the open pit mine, which is coming to the end of life early next year.
Pickstone general manager Mr Alfred Madowe said during a tour of the mine by Mines and Mining Development Deputy Minister Polite Kambamura that the mine’s underground projects would boost output by 160 kgs per month.
“Phase 1 was mainly about extensive shaft and surface infrastructure installation and was completed by August.
“Beginning 2024, we are going to invest US$27 million on phase 2, which will take our total investments to almost US$50 million,” he said.
The Pickstone underground project was completed at the end of August 2023, with commercial hoisting of ore commencing in September 2023.
Mr Madowe said after phase 2, Pickstone together with sister company Eureka Gold Mine will be producing at least 210 kg per month, becoming the third largest gold producer in the country.
“The second phase will be done on a phased approach with first production targeted early 2025,” he said.
Mr Madowe noted that indicative underground grades are at 2,5 to 3,0 grams per tonne which are breakeven grades, especially at current gold prices.
At Eureka, he said the mine is engaged in a pre-leach thickener project which will improve recovery and overall output.
Mr Madowe said the projects will create over 800 new jobs and will contribute significantly to the increase of revenue and foreign currency inflow in the economy and contribute towards the US$12 billion mining industry.
Deputy Minister Kambamura said the mine should continue to sustainably, contributing to the country’s gold mining sector.
“You should continue to mine sustainably to ensure future generations also benefit from the resource,” he said.
He added that the continued investments at Pickstone are in line with the government’s thrust of expanding mineral revenue and the sector’s contribution to the economy.
According to Mr Madowe, Pickstone has an estimated resource of 1 million ounces, with 50 percent already upgraded measured, and 30 percent as reserves.
Parent company Padenga recently hinted that it will likely spend US$25 million on capital expenditure towards its mining portfolio as the company continues to buttress its mining operations.
According to Padenga a significant chunk of the amount would be invested in the expansion of the Pickstone Peerless underground mining as the company seeks to tap into the potential high-grade gold at the Chegutu mine.
Some of the capital will be used in the re-equipment and regeneration of the mine.
Padenga Mining division develops and operates commercial-scale Zimbabwean gold mines and is one of the top three gold producers in the country.
Eureka Mine continues to deliver robust performance, contributing significantly to volume growth and profitability.
Eureka mine was reopened under the government’s thrust to partner investors and revive all mines that were lying idle as it pins hopes on natural resources to rebuild the economy.
As such, Dallaglio (Padenga Mining segment) dispensed around US$60 million to capitalize the Eureka Mine in Guruve.
The government has been placing special focus and support on the gold mining and agriculture sectors as they are expected to spearhead the quick economic recovery of the local economy.
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