Dallaglio Investments, the mining unit of Padenga Holdings, is counting on a new artisanal mining joint venture, expanded underground operations, and an aggressive drilling campaign to revive production growth after gold output fell 3% in the year to December 2025, Mining Zimbabwe can report.
By Ryan Chigoche
The group produced 2,564 kilogrammes of gold during the year, down from 2,638 kilogrammes in 2024, after weaker output at Pickstone Peerless Mine offset strong gains at flagship Eureka Mine.
The decline was largely tied to Pickstone’s transition from open-pit mining to a fully underground operation, a shift that temporarily disrupted production as the company repositioned the mine for longer-term growth.
As part of the restructuring, Pickstone, through Dallaglio’s Cordillera subsidiary, entered into a joint venture with an artisanal mining and processing company. Ore mined at the operation will now be sold to the Cordillera joint venture, while the mine itself focuses entirely on underground extraction.
Management expects the arrangement to improve efficiencies and profitability as underground production ramps up.
The transition is already being backed by deeper capital investment. Dallaglio commissioned Phase 3 of Pickstone’s underground project in December, enabling ore mined between Levels 7 and 10 to be hoisted from the 10.5 Level loading station while also opening new drilling access for deeper exploration of the ore body.
The company plans to invest a further US$18 million into the underground operation in 2026 as it targets higher production volumes from the asset.
The underground push has also translated into reserve growth. Planned ore reserves at Pickstone increased from 105,000 ounces to 123,000 ounces during the year following refinement of the ore body, strengthening confidence in the mine’s long-term economics.
At the same time, Dallaglio is accelerating exploration spending across its portfolio, budgeting US$17 million in 2026 to expand mineral resources and improve reserve confidence at both Pickstone and Eureka.
The company said it has strengthened its geological team and plans significantly more drilling this year, targeting previously unmined areas at Pickstone, including deeper sections of the Peerless ore body. Development work for mining below Level 10 is already underway.
While Pickstone underwent restructuring, Eureka delivered one of the strongest performances in the group. Gold production at the mine rose 9% to 1,969 kilogrammes from 1,811 kilogrammes in 2024, supported by higher throughput, improved feed grade, and stronger recovery rates.
Dallaglio also extended Eureka’s mine life to 2039 following a pit redesign based on updated geotechnical data, reinforcing the asset’s position as the group’s production anchor.
Further upside could come from exploration. The company completed its 2025 drilling campaign at Eureka in December, with results expected to be incorporated into the resource model this year, while investigations into underground mining beneath the planned open pit are also underway.
Alongside mine development, Dallaglio is advancing energy and processing projects aimed at improving efficiencies and lowering operating costs.
A 4.9MW solar plant at Pickstone and a 5MW solar project at Eureka are both expected to deliver first power in the first quarter of 2026, while a gravity circuit upgrade at Eureka is scheduled for commissioning in the second quarter and is expected to improve plant recoveries.
After a year shaped largely by restructuring, Dallaglio is entering 2026 with a strategy centred on underground expansion, reserve growth, and operational upgrades as it seeks to restore production momentum.
