ZIMBABWE Stock Exchange-listed miner RioZim’s Cam and Motor and Renco Mines closed the year end December 2018 with a gold production of 22 percent reduction from the previous year.
According to a statement issued by the group chairperson Lovemore Chihota, Kadoma based Cam and Motor Mine produced 458 kg in the first half of the year. However, due to falling recoveries and the temporary stoppage of operations, the Mine closed the year with a total production figure of 758 kg which demonstrated a 22% reduction from the prior year. While Masvingo based Renco Mine produced 591 kg in the first half of the year, 61 percent of the total year output which was a 22 percent reduction from the previous year.
While Cam and Motor Mine’s milling performances were excellent from the prior year according to the group’s chairperson, this did not translate to improved production due to the failing recoveries and ultimately this resulted in an increase in the production cost per ounce. However, according to Mr Chihota, the depressed output in the second half of the year at Renco Mine was attributed to under-performance in the milling section.
According to the statement, the deteriorating ability to access adequate foreign currency in the second half of the year hampered the company’s effort to procure consumable for the Mines which resulted in low plant availability and reduced milling time. The situation was exacerbated by the impromptu suspension of operations in Q4. Furthermore, Renco mine was unable to proceed with plans to develop an additional shaft to ramp up mining capacity due to the same constraints.
The statement further reads that, the Group is in the process of developing a Biological Oxidation (BIOX) Plant in order to treat the refractory ore reserves. Unfortunately, the scarcity of foreign currency held back the project in the year under review. Once operational, the BIOX Plant is expected to enable the Company to double its production output.