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Business Reporter
PLATINUM Group Metals (PGM) producer, Zimplats, says US$1,4 million was spent on exploration projects with a further US$4,7 million committed as at 31 December 2022.
Exploration activities included mineral resource evaluation, comprising approximately 7 968 metres of surface diamond drilling on mining lease ML 36.
In its quarterly report for the period ending 31 December 2022, the giant mining firm said a total of US$4,5 million was transferred from operating costs as milled throughput exceeded mined volumes while concentrate inventory that accumulated during the prior quarter was also smelted.
“This resulted in the gross cost of metal produced increasing by 21 percent compared to the prior quarter. 6E (platinum, palladium, rhodium, ruthenium, iridium, and gold) unit costs increased by five percent to US$839/oz from US$801/oz in the prior quarter and were 15 percent higher year-on-year,” said the company.
“US$1,4 million was spent on exploration projects, with a further US$4,7 million committed as at 31 December 2022. Exploration activities included mineral resource evaluation, comprising approximately 7 968 metres of surface diamond drilling on mining lease ML 36.”
During the period under review, mined volumes increased by one percent from the prior quarter and were 14 percent higher year-on-year, with strong operational performances across the mines.
Ore milled increased by 13 percent from the prior quarter to 1,95 million tonnes.
Milled volumes benefitted from higher installed capacity following the commissioning of the Ngezi third concentrator plant in September 2022.
However, Zimplats said the 6E head grade decreased by two percent from the prior quarter and was one percent lower year-on-year.
“This was due to increased contribution of lower-grade development ore from the Mupani Mine stockpile. 6E metal in the final product increased by 16 percent from the prior quarter and was 15 percent higher year-on-year, reflecting the benefit of higher concentrator volumes and the impact of inventory accumulation during the scheduled furnace reline in the prior quarter,” it said.
Giving an update on the ongoing operations, Zimplats noted that a total of US$274,6 million has been spent on the development of Mupani Mine and the upgrade of Bimha Mine.
A total of US$71,9 million has been committed against a project budget of US$468 million.
The Ngezi third concentrator plant, which will increase milling capacity by 0,9 million tonnes per year was commissioned in September 2022 and a cumulative project expenditure as at the end of the quarter amounted to US$97,1 million, with US$5,8 million committed against a project budget of US$104,1 million.
The company said the implementation of the US$521 million smelter expansion and the SO2 abatement plant project remains on track, with US$49,8 million spent and US$242,9 million committed at quarter end.
Notable progress was achieved on the 35MW solar plant project, which is Phase 1 of Zimplats’ 185 MW solar project with a total of US$0,8 million spent and US$0,4 million committed against a budget of US$37 million in the quarter under review.
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