Online Reporter
AFTER an infamous Illegal Destructive Strike two years ago, Duration Gold, owners of Vubachikwe Mine in Gwanda have “Put their Money where their mouth is” — announcing over US$5 000 000 having been invested in the ML 16 (Vubachikwe Mine) Expansion Plan.
A Maiden JORC resource Report has been issued, declaring over 1 000 000 oz of code compliant resource with exploration targets to potentially add over 4 000 000 ounces delivered by VBKOM Holdings (Pty) Ltd, an internationally respected competent company with extensive Zimbabwe experience.
Despite what the company termed as “ever-increasing challenges and nefarious interference” from a number of quarters in Vubachikwe Mine’s operations since the damaging illegal riot and strike of November 2022, Duration Gold has been unwavering in its commitment to implement its two-pronged Expansion Plan.
Evidence supporting a criminal complaint proving Illegal Strike Damages of over US$32m in terms of destruction to property and lost revenues for the period between the illegal strike and 31 December 2023 alone has not deterred Duration’s contribution to the development of Zimbabwe’s mining sector.
A two-pronged Expansion Plan is being implemented, at a cost to date of over US$5 000 000:
The mining entity’s plan includes to immediately commence production in 4 phases during 2025 thus addressing employees, community and local stakeholders needs; and efforts to achieve Duration’s objective of transforming this tiny “Ma and Pa” mine (peak production of 900oz per month pre illegal strike) into a modern, sustainable, long life (20+ years), mid-sized (150 000 oz of annual production) gold mine by international standards.
Over and above that, all legally permitted preparations to commence phased production, both underground and at surface, have been completed including the purchase of new earth moving equipment, site and infrastructure development as well as processing plant design and procurement.
Speaking on the developments and progress, mine spokesperson Robert Mukondiwa said only a handful of statutory obligations had to be satisfied.
“All that remains to “kick off” construction and initiate production is approval of an amended Environmental Impact Study (EIA) by EMA,” he said.
“We as Duration Gold has committed to fully funding the 4-phased production programme and extensive work has been completed since the illegal strike to confirm, through methodical exploration, of up to 5 000 000 ounces of resources as outlined in the VBKOM JORC Report, and the necessary reserves to support the design, construction and funding of a modern, mid-sized, long life, mine by international standards” he added.
Mukondiwa shed further light on how extensive the report was.
“This past week VBKOM Holdings (Pty) Ltd released its 181 page Independent Mineral Resource Competent Person’s Report on Mining Lease 16 (incorporating Vubachikwe Mine), Zimbabwe,” he reiterated.
The JORC Report confirmed:
a. Underground combined indicated and inferred resources of 846 200 oz
b. Surface dump material inferred resources of 152 357oz
c. Giving a total gold resource inventory (Indicated and Inferred categories) of 1 076 452oz
d. In addition to the above JORC compliant “hard rock” exploration resource targets ranging from 751 000oz minimum to 4 148 000oz maximum
However, Mukondiwa noted important information guiding investors and shareholders, namely that at present there are no:
i. Measured resources; or
ii. Proven or probable (economically mineable) reserves
“Resources denote mineralisation that exists geologically only meaning there is insufficient exploration and development work completed (typically closely spaced drilling) to confirm an economically mineable volume of ore. Whereas, proven and probable reserves are those that can be economically extracted at a profit,” he said.
“Therefore, the next step will be the completion by VBKOM of a definitive ML 16 exploration programme and budget report to convert the 4m+ ounces of JORC exploration targets into code compliant resources including mineable reserves. Current estimates for this large-scale surface and underground drilling programme suggest a cost of approximately US$30 million subject to final report confirmation.”
Based on the drilling results a definitive (bankable) feasibility study will follow including a phased programme and budget to design, construct and fund a modern mid-sized mine the total cost of which will be in the range of $200m, again subject to final report confirmation.
Meanwhile, Mukondiwa shed light on the state of the mine in light of a corporate rescue attempt by a local security guard outfit.
“The ill founded Fawcett corporate rescue application on 25 April 2024: disrupted, but did not derail, Duration Gold’s Expansion Plan activities and investment. We maintain that it was and is ill founded as the F&T, holding company of ML 16/Vubachikwe Mine is not in financial distress but continues to operate and meet all its obligations as they fall due,” revealed Mukondiwa.
“In fact, to demonstrate our nonchalance to the petty sideshow as well as other flimsy attempts at distracting us, the mine clinic has just now been re-certified and shall open soon.”
Chronology of work completed in respect of Mining Lease 16 (incorporating Vubachikwe Mine) since the riot and illegal strike of November 2022:
a. Review of the performance of Vubachikwe Mine, including unexplained gold losses, theft, reserve depletion without replacement and local senior mine mismanagement (Duration Gold internal investigation, H1 2022)
b. Consolidation of Forensic Investigation Reports presented between January 2022 and February 2023
c. Duration Gold Limited – Vubachikwe Gold Plant Site Visit Report MS010-P750-001 (SGS Bateman Engineering September 2022)
d. Independent Investigation of Vubachikwe Mine by Kenneth c. Oldwadge, Advocate of the High Court of South Africa, Member of the Johannesburg Society of Advocates, Group 16 Advocates (K.C. Oldwadge, October 2022)
e. Mine Manager Statement of Evidence for Criminal Compliant re Illegal Strike Damages (documenting over US $32m of losses in terms of destruction to property and lost revenues for the period between the 8 November 2022 illegal strike and 31 December 2023.
f. Duration Gold Limited – ML 16 (Vubachikwe) Technical Review and Valuation (VBKOM February 2023)
g. Duration Gold Limited – Vubachikwe Gold Mine: Independent Review of Reasons for Temporary Suspension and Confirmation of Reserve Buildings (Work-Out) Plan to Re-Start Mining Operations (VBKOM March 2023).
h. Re-Start Project Roadmap (Presentation to Minister of Mines, delivered to the Minister of Mines (VBKOM April 2024)
i. ML 16 (Vubachikwe Mine) – Restart Project and Implementation Plan Proposal (VBKOM May 2023
j. Expansion Plan Review of ML 16 (Vubachikwe Mine) Gold Plant and Metallurgy (VBKOM March 2025)
k. Independent Mineral Resource Competent Person’s Report on Mining Lease 16 (incorporating Vubachikwe Mine), Zimbabwe (VBKOM, April 2025)
