Home Blog Page 195

Zimbabwe Lithium Mine Set for Expansion Despite Tungsten Mine Impasse

Mining
-
0
Zimbabwe Lithium Mine Set for Expansion Despite Tungsten Mine Impasse

Premier African Minerals, a London-listed company, has made significant progress at the Zulu Lithium and Tantalum Project, overcoming obstacles to achieve substantial milestones.

By Patricia Rwafa

Production of saleable spodumene concentrate is underway, with an upcoming upgrade promising even greater efficiency. Confident in meeting ambitious targets, the company aims for a competitive delivery cost for spodumene concentrate to China. Favourable resource estimates indicate a long and productive future at Zulu.

As announced on June 28 in the annual report for the year ended December 2023, high wolframite prices suggest resuming production at the RHA Tungsten Mine could be profitable. However, ongoing discussions about ownership structure with the Zimbabwean government are delaying a decision. To allocate resources for the Zulu project’s expansion, Premier African Minerals might relocate most of the RHA plant by late 2024.

The Zulu Lithium Project overcame initial hurdles in its continuous flotation process and successfully produced saleable spodumene concentrate with a lithium oxide (Li2O) content of up to 6.2%. To further optimize production, an additional conditioning cell will be installed in July 2024, bringing the plant to its designed throughput and enabling the achievement of the original production targets.

The company reports positive developments with a major Chinese miner evaluating their eastern Zimbabwe claims for potential acquisition. While development is on hold due to the focus on Zulu, Premier seeks alternative avenues to unlock the value of its 50% stake in the Turwi Gold Project.

Despite delays at Zulu impacting further development, Premier remains interested in increasing its control in MN Holdings due to the positive outlook for manganese. Financial highlights for MN Holdings’ subsidiary Otjozondu include:

– Revenue of approximately N$76 million ($4.1 million) for the year ended June 30, 2023.
– Operating profit before tax of approximately N$24.1 million ($1.3 million).
– Total assets of approximately N$289 million ($15.6 million) as of June 30, 2023.

While progress has been slow on the Vortex Lithium Project, the company notes an improved situation in Ethiopia. However, frustrations related to cooperative agreements and differing opinions on development continue to hinder progress.

Premier African Minerals raised net proceeds of $17.542 million during the reporting period, up from $14.838 million in 2022.

George Roach, CEO of the Zulu Lithium plant, expressed dissatisfaction with the performance of the original plant and equipment suppliers and intends to seek substantial redress. He acknowledged the support of their offtake and prepayment partner and remains committed to meeting their long-term interests, which focus on the supply of SC6.

The company released updated resource estimates, identifying that the main pegmatite at Zulu is primarily a spodumene-rich ore body. This estimate, coupled with the extent of pegmatites within the EPO, suggests a longer-term life of mine and the potential for increased plant production capacity. An application has been made for the renewal of the EPO, and extensive new mining claims have been registered within the EPO.

Based on internal assessments, the production cost associated with spodumene concentrate supports an internal project of a delivered China port all-in cost of $828 per tonne for the year ending June 2025. The new scrubber unit will be operational by the week of July 10, enabling Zulu to produce and derive revenue from the sale of SC6. The Board believes Zulu is a valuable asset, with an estimated fair value of $200 million by the prepayment and offtake agreement. The group has sufficient share authorities to sustain its reduced holding costs through December 31, 2025.

Disco Establishes Clinic for Its Workers

Mining
-
0
Disco Establishes Clinic for Its Workers

In an endeavor to promote a safe working environment and workers’ health, Dinson Iron and Steel Company (Disco) has built a clinic for its workers in Manhize.

By Rudairo Mapuranga

Speaking to Mining Zimbabwe, an official from Disco said the clinic will serve all workers free of charge to ensure their health is prioritized.

“As Dinson Iron and Steel Company (Disco), we have already built a clinic that will serve all our workers free of charge, without any deductions of any sort. There will be a doctor, two nurses, and up to four nurse aides. We are awaiting approval from the Ministry of Health, but everything is now in place and the clinic will start operating soon,” he said.

The clinic aims to provide comprehensive healthcare services, including regular check-ups, emergency care, and health education programs, ensuring that workers maintain good health and are well-prepared to handle any occupational hazards.

Disco has achieved a historic milestone with the activation of its blast furnace at the Manhize steel plant in June 2024. This landmark event signals the beginning of pig iron production.

This development heralds a new era for the region’s industrial landscape, positioning Zimbabwe as a burgeoning hub in the global steel industry. Pig iron, an essential intermediary in steel manufacturing, is produced by smelting iron ore in a blast furnace, and its local production marks a significant advancement.

The Manhize Plant, nearing full commissioning later this year, is on track to become one of Africa’s largest integrated steelworks. Built by Disco, a subsidiary of China’s Tsingshan Holdings Group Limited, the plant is poised to transform Zimbabwe’s industrial capabilities. Tsingshan also operates Dinson Colliery in Hwange and Afrochine Smelting Limited in Selous.

ASM Gold Deliveries Surge Due to Hammer Mill Regulation, VAT Removal, and FGR’s Strategies: ZMF

Mining
-
0
ASM Gold Deliveries Surge Due to Hammer Mill Regulation, VAT Removal, and FGR’s Strategies: ZMF

The Zimbabwe Miners Federation (ZMF), the country’s leading representative of the Artisanal and Small-Scale Mining (ASM) sector, has attributed the 55.6% increase in gold deliveries in the second quarter of 2024 to the government’s relaxed stance on hammer mills, the removal of value-added tax (VAT), and marketing strategies implemented by Fidelity Gold Refinery (FGR).

By Rudairo Mapuranga

Speaking to Mining Zimbabwe, ZMF CEO Mr Wellington Takavarasha stated that the government’s decision to regularize the use of hammer mills by ASM miners, rather than disrupting their operations through arrests, has improved gold production and deliveries to FGR.

“The government has realized the full potential and significance of hammer mills. Together with the Minister of Mines and Mining Development, we have started to regularize the operations of those using hammer mills. This equipment allows small-scale miners to crush as little as 20 kg and quickly realize the benefits,” Takavarasha said.

He added that the removal of the 15% VAT on all gold sales to FGR and the deployment of the gold mobilization team, which educates and encourages miners to deliver the gold to the country’s sole operating gold buyer and exporter, have significantly contributed to increased gold deliveries.

“Recently, the removal of the 15% tax has incentivized gold deliveries to Fidelity Gold Refinery. The gold mobilization team, sent by the Minister of Mines, has been conducting education and awareness campaigns. These efforts have improved relations between miners and the government and encouraged miners to deliver their gold to Fidelity,” he said.

Takavarasha also noted Fidelity’s efforts to enhance its services, including advertising, creating social groups for feedback, and extending operating hours, even on holidays. These measures have removed barriers to gold deliveries during normal times.

“We anticipate a significant increase in gold deliveries from small-scale miners. There is potential for even greater production as we continue to have mutual meetings with the Minister of Mines and develop policies that support the artisanal sector,” Takavarasha concluded.

Gold deliveries to the country’s sole operating gold buyer and exporter increased by over 28% in the second quarter of 2024.

Overall, gold deliveries surged to 7,739.4241 kgs for the second quarter of 2024, marking a significant 28.033% increase from the first quarter’s 6,044.8689 kgs.

Small-scale miners led this surge, delivering 4,515.1660 kgs in the second quarter, representing a substantial 55.5988% increase from their first-quarter deliveries of 2,901.8006 kgs. This notable rise underscores the critical role of artisanal and small-scale miners in the country’s gold production.

Large-scale miners also contributed to the overall increase, albeit to a lesser extent. Their deliveries rose to 3,224.2581 kgs in the second quarter, up by 2.58314% from the 3,143.0683 kgs delivered in the first quarter.

Zimbabwe gold buying prices per gram 4 July 2024

Mining
-
0
Zimbabwe gold buying prices per gram 4 July 2024

Fidelity Gold Refinery (FGR) official gold buying prices/ gram. See the Zimbabwe gold buying prices per gram today 4 July 2024.

SG 90% and ABOVE US$71.74/g
SG ABOVE 85% BUT BELOW 90% US$70.98g
SG ABOVE 80% BUT BELOW 85% US$70.22/g
SG ABOVE 75% BUT BELOW 80% US$69.46/g
SAMPLE BELOW 10g BUT ABOVE 5g US$68.32g

Fire Assay CASH $72.12/g

NB: Fire Assay cash price is for gold above 100gs, no sample is deducted.
For the Fire Assay Transfer price, a sample of not more than 10g is deducted
A 2% royalty is charged on all deposits (Small-scale miners)
A 5% royalty is set for Primary Producers

Cash available. Fidelity Gold Refinery prices will be changing daily to match world market prices.

Mine Entra postponed to an unconfirmed date 

Mining
-
0
Mine Entra postponed to an unconfirmed date 

Zimbabwe’s premier Mining Exhibition, The Mining Engineering and Transport Exhibition (Mine Entra), initially set for July 17-19, has been postponed to a yet-to-be-announced date, as revealed by Zimbabwe International Trade Fair Company (ZITF) Board Chairman, Mr. Busisa Moyo.

By Rudairo Mapuranga
According to Moyo the decision to reschedule Mine Entra was made to avoid potential conflicts with the upcoming SADC Industrialisation Week, a significant regional event scheduled for July 28-August 2 in Harare. The SADC Industrialisation Week is expected to attract substantial attention from industry leaders, government officials, and investors across the region.
“The Zimbabwe International Trade Fair Company (ZITF) wishes to inform exhibitors, visitors, buyers, delegates, and all other stakeholders that the 27th edition of the mining, engineering and transport exhibition, Mine Entra, originally scheduled for July 17-19, 2024, in Bulawayo, has been postponed to a date yet to be confirmed,” stated Moyo.
 “Consultations regarding suitable dates are underway at the highest level of government and business leadership. This is to ensure the standard of the show and depth of interactions, discussions, and interventions meet the highest standard possible.”
Moyo said the ZITF Company recognizes the importance of both Mine Entra and the SADC Industrialisation Week. Holding Mine Entra during the same timeframe could lead to divided attendance, potentially diminishing the impact of each event.
Postponing Mine Entra will ensure both events receive the focused participation they deserve, maximizing opportunities for attendees and exhibitors. This approach allows participants to engage fully with each event without scheduling conflicts.
According to Moyo, under the guidance of the Ministry of Mines and Mining Development and in partnership with the Chamber of Mines Zimbabwe, the ZITF Company remains dedicated to delivering a world-class mining exhibition fostering collaboration, innovation, and growth. The rescheduled Mine Entra exhibition will continue under the theme: “Unearthing Success: The Mining Value Chains, Innovation and Industrialisation Nexus.” The event aims to unite local and international industry leaders, investors, and stakeholders to explore advancements and opportunities within the mining sector.
“All registered participants, exhibitors, and sponsors will be directly contacted with the new dates and details. For further information and the rescheduled dates, please visit the ZITF Company website at [www.zitf.co.zw](http://www.zitf.co.zw) or call the Marketing & Communications Department at +263 292 884911-6.
The ZITF Company appreciates the support and understanding of all stakeholders and looks forward to welcoming them to the rescheduled Mine Entra 2024 exhibition,” Moyo said.

Gold Deliveries Increase to 7,739.42kg in Q2

Mining
-
0
Gold Deliveries Increase to 7,739.42kg in Q2

Gold deliveries to the country’s sole operating gold buyer and exporter, Fidelity Gold Refinery (FGR), increased by over 28 per cent in the second quarter of 2024, new data from FGR shows.

By Rudairo Mapuranga

Overall gold deliveries surged to 7,739.42kg for the second quarter of 2024, marking a significant 28.033% increase from the first quarter’s 6,044.8689 kg.

Small-scale miners led this surge, delivering 4,515.1660 kg in the second quarter, representing a substantial 55.5988% increase from their first-quarter deliveries of 2,901.8006 kg. This notable rise underscores the critical role of artisanal and small-scale miners in the country’s gold production.

Large-scale miners also contributed to the overall increase, albeit to a lesser extent. Their deliveries rose to 3,224.2581 kg in the second quarter, up by 2.58314% from the 3,143.0683 kg delivered in the first quarter.

However, there was a 4.23346% decrease in overall monthly production from May to June 2024. The total gold delivered in June was 2,618.3844 kg, down from 2,734.1329 kg in May.

The second quarter of 2024 has been marked by a notable increase in gold deliveries, driven largely by the impressive performance of small-scale miners. Despite the slight month-to-month decline in overall production from May to June, the sector remains on an upward trajectory, contributing significantly to the nation’s gold output and economic stability.

Gold deliveries to FGR by the ASM increased by over 37 per cent to 1,678.4475 kg in May 2024 from 1,218.2045 kg in April. However, large-scale gold producers, whose deliveries have been impressive throughout the year, saw their deliveries decline by approximately 36.7% to 1,055.6854 kg in May from 1,668.7922 kg in April.

ASM accounted for approximately 61.4 per cent of the total gold deliveries, returning to their annual average delivery rate from the decline experienced in February and March when large-scale producers dominated.

Total gold deliveries increased by approximately 14.5% to 2,734.1329 kg in May from 2,386.9067 kg in April.

Gold deliveries to FGR surged by approximately 31.4 per cent in April 2024 compared to the previous month, driven by increased contributions from ASM.

April’s gold deliveries reached 2,386.9067 kg, marking a significant increase from the 1,816.5413 kg delivered in March 2024.

ASM deliveries soared by approximately 58 per cent to 1,218.2045 kg in April, compared to 770.9838 kg in March, while deliveries by large-scale gold miners also rose by about 11.78 per cent to 1,168.7022 kg from 1,045.5575 kg in March. For the first time in two months, ASM deliveries surpassed those of large-scale miners, accounting for approximately 51 per cent of the total deliveries in April.

The first quarter of 2024 closed with total deliveries of 6,044 kg, slightly lower than the 6,194 kg recorded in the first quarter of 2023 and significantly below the 7,694 kg delivered in the first quarter of 2022, which was a record-breaking year. Large-scale miners delivered 51.995 per cent (3,143.0683 kg) of the total deliveries in the first quarter of 2024, surpassing ASM, who delivered 48.004 per cent (2,901.8006 kg). Historically, ASM has been the country’s primary gold deliverer to FGR, accounting for over 61 per cent of total gold deliveries.

Compared to the record year of 2022, deliveries during the same quarter decreased by 24 per cent to 7,694 kg. Additionally, deliveries in March 2024 dropped by 27 per cent compared to March 2022, from 2,403 kg to 1,816 kg.

Zimbabwe’s gold deliveries declined by 15 per cent in 2023 due to rising costs, power shortages, and government currency policies. Deliveries to Fidelity totalled 30.1 tonnes in 2023, down from 35.6 tonnes in 2022, which was a record year fueled by new mining projects and improved payments to small-scale miners, who make up the majority of Zimbabwe’s gold deliveries. However, sales slowed in 2023.

Gold output remained stagnant for large producers at 11.4 tonnes in 2023, showing little growth from the 11.2 tonnes delivered in 2022 and 2021. Small-scale producers experienced a sharp drop, delivering just 18.6 tonnes in 2023, a 23 per cent decrease from the 24.1 tonnes sold in 2022, bringing deliveries back to 2021 levels.

Mining Industry Urges Tax Reductions, Lowering of Power Costs in Anticipation of Mid-Term Budget

Mining
-
0
Mining Industry Urges Tax Reductions, Lowering of Power Costs in Anticipation of Mid-Term Budget

The mining industry is advocating for substantial tax cuts and a reduction in power tariffs to maintain operations and support growth as Finance Minister Mthuli Ncube prepares his upcoming mid-term budget statement.

The mining sector is pushing for significant reforms in government policies to address the economic strain caused by low metal prices.

Revising the Capital Gains Tax

The capital gains tax on the transfer of mining titles, introduced in the 2024 budget, has been a major concern for the mining community. This tax, which imposes a 20% charge on sales of mining projects to foreign investors and is backdated by ten years, has created uncertainty and discouraged investment. The Chamber of Mines is calling for this tax to be reduced to 5% and not applied retroactively, to stabilize the investment climate.

Significant increases in royalties have also placed a heavy burden on miners. Last year, the government increased platinum royalties from 2.5% to 7%, significantly raising costs at a time when metal prices are low. The mining sector suggests a sliding scale for royalties based on metal prices: 3% when platinum prices are under US$1,100 per ounce and 5% when they are above this threshold. Additionally, they propose lowering diamond royalties from 10% to 7% and reducing lithium royalties from 5% to 3% to support the emerging lithium industry.

Removing the Tax on Unrefined Platinum

The 5% tax on platinum exports, intended to incentivize local refining, has been counterproductive, according to the Chamber of Mines. They argue that this tax should be eliminated as the industry has already committed to building a joint refinery. The existing tax has led to delays in projects, such as the Zimplats base metal refinery, which was postponed due to falling prices.

Current regulations require miners to retain only 75% of their earnings in USD, with the remaining 25% converted to local currency. This policy has drastically reduced the foreign exchange available for mining operations, dropping from US$1.7 billion in 2022 to US$1 billion in 2024. The Chamber of Mines recommends that the government collect more taxes in Zimbabwean dollars (ZiG) to ease the forex burden on miners, thereby supporting operational and expansion needs.

Reducing Electricity Tariffs

The cost of electricity is another critical issue, with miners currently paying USc14.21 per kWh. The sector argues that this rate is unsustainable and proposes lowering the tariff to USc10 per kWh. The Chamber of Mines warns that if power costs remain high, platinum group metals (PGMs) producers may be forced to reduce smelting activities, jeopardizing the industry’s future.

Contango Holdings Closes in on the Sale of a 51% Stake in the Muchesu Coal Project

Mining
-
0
Contango Holdings Closes in on the Sale of a 51% Stake in the Muchesu Coal Project

London Stock Exchange-listed entity Contango Holdings is set to sell a 51% stake in its 2 billion-tonne Muchesu coal project in Zimbabwe to Huo Investments.

by Ryan Chigoche

Currently, the coal project is 74.75% owned by Contango’s subsidiary, Monaf Investments. In an update, the company revealed that they have already signed binding agreements with Huo Investments, who are set to become the largest shareholder and operator of Muchesu.

Huo Investments will invest up to US$20 million in Muchesu to complete the 51% equity ownership stake.

As part of the deal, the investor will invest US$2 million in Contango, as well as provide a production royalty in relation to Muchesu.

Huo Investments (Pvt) Limited is an investment vehicle of Wencai Huo, a Zimbabwe-based Chinese national with extensive mining and business investments in Zimbabwe and Southern Africa.

“The investor has entered into an agreement under which new ordinary shares in Monaf will be issued to the investor so that, following completion, the investor shall own 51% of the enlarged share capital of Monaf. The company’s interest in Monaf will be diluted by these arrangements, but it is expected that the minority shareholders of Monaf will maintain their respective percentage holdings of the issued share capital of Monaf. This investment is subject to standard regulatory approvals in Zimbabwe, and following completion, Contango will have enshrined rights to maintain the appointment of two directors on the board of Monaf,” read part of the company statement.

As a result of the confirmation that Contango Holdings is closing in on the sale, the company’s shares were up 7% as the negotiations have progressed to final documentation.

Last month, the group had said it was in talks with businessman Wencai Huo over the sale of 51% of the Muchesu coal asset in Zimbabwe. On Tuesday, Contango said:

“The company will update the market upon confirmation and entry of final definitive documentation in relation to this transaction.”

As part of the deal, the investor has also entered into a subscription agreement with Contango for 142,000,000 new ordinary shares at a price of £0.0111 per share, with the company set to receive US$2,000,000 in fresh funding.

The subscription will be applied towards general working capital purposes. Following the subscription, the investor will hold 142,000,000 ordinary shares in the company, resulting in a holding of approximately 20% of the enlarged share capital following the subscription.

Monaf and Contango have entered into a mineral royalty agreement which will become effective immediately following the disposal of the company’s 51% interest in Monaf and the waiver of the mineral royalty agreement entered into between Monaf and the company in favor of Consolidated Growth Holdings Limited on 24 July 2020.

The royalties will be awarded on gross production at Muchesu, for the life of the mine, as follows: US$2 per tonne in relation to thermal coal production, US$4 per tonne in relation to industrial coal production, and US$8 per tonne in relation to coking coal production.

Formerly known as the Lubu Coal Project, the Muchesu Coal Mine covers 19,236 hectares of the highly prospective Karroo Mid Zambezi coal basin, located in the established Hwange mining district in north-western Zimbabwe.

The local community also owns 30% of the project. Previous owners have expended more than $20 million on Muchesu, which has enabled a sizeable resource in excess of 2 billion tonnes.

Approximately US$10 million has subsequently been spent by Contango on mine construction and development to bring Muchesu into production.

Pambili’s Acquisition of Bulawayo’s Golden Valley concluded

Mining
-
0
Pambili’s Acquisition of Bulawayo’s Golden Valley concluded

Toronto Stock Exchange-listed Pambili Natural Resources Corporation has achieved another milestone, securing final approval from the TSX Venture Exchange (TSXV) for its acquisition of the Golden Valley Gold Mine near Bulawayo, Zimbabwe.

By Rudairo Mapuranga

The approval marks a significant advancement in Pambili’s strategic plan to revitalize underperforming gold mines, paving the way for enhanced productivity and growth within Zimbabwe’s mining sector.

Pambili’s acquisition of the Golden Valley Gold Mine from White Satin Investments (Private) Limited signifies a pivotal moment in the company’s growth trajectory. The TSXV’s final acceptance of the transaction, following a detailed review process including the approval of Pambili’s updated NI 43-101 Technical Report, underscores the robustness of Pambili’s strategic initiatives.

Jon Harris, Chief Executive Officer of Pambili, highlighted the importance of this approval, stating, “The final acceptance of the transaction by the TSXV confirms that the company has complied with the exchange requirements. More importantly, it also provides us with a secure platform from which to develop our strategy of consolidating underperforming gold mines starved of the capital required to develop their full potential. We expect to announce further such acquisitions in due course.”

Expanding Zimbabwe’s Mining Potential

Pambili’s acquisition strategy is designed to breathe new life into gold mines that have not reached their full potential due to a lack of investment. The company’s focus on such projects not only enhances its portfolio but also contributes significantly to the overall development of Zimbabwe’s mining industry. By turning around underperforming mines, Pambili is helping to unlock Zimbabwe’s vast mineral wealth, thereby generating economic benefits for the local communities and the nation at large.

A Track Record of Strategic Development

This latest development follows a series of strategic moves by Pambili, including the conversion of a 50-hectare milling site surrounding the Golden Valley mine into five 10-hectare mining claims. This expansion has increased the Golden Valley project area to 60 hectares of highly prospective ground, providing a broader platform for exploration and potential gold production.

Golden Valley, Pambili’s flagship project, is situated on the Bulawayo greenstone belt in Zimbabwe’s Matabeleland Province. With a history of high-grade gold production, the project includes a gold processing plant, a stamp mill, and two historic adits. The company’s planned underground drilling program at Golden Valley, endorsed by an independent technical report, further underscores its commitment to developing this high-potential asset.

Investor Confidence and Future Prospects

Pambili’s strategic acquisitions and methodical approach to expanding its operations have garnered significant interest from international investors. The company’s vision of consolidating and revitalizing underexplored gold projects aligns with global investment trends, attracting substantial support from both insiders and new investors.

“The participation of international investors in our projects is an endorsement of our approach to provide attractive shareholder returns through the consolidation of underexplored and underdeveloped gold projects in Zimbabwe,” Harris noted.

As Pambili continues to implement its strategic vision, the company’s contributions to Zimbabwe’s mining industry are poised to create substantial economic value. The successful acquisition of the Golden Valley Gold Mine and the expansion of its project area exemplify Pambili’s role in driving growth and innovation within the sector.

With further acquisitions on the horizon, Pambili is well-positioned to become a leading player in the rejuvenation of Zimbabwe’s mining industry, fostering sustainable development and prosperity for the nation.

Kavango Resources Targets Large Gold Deposits in Zimbabwe

Mining
-
0
Kavango Resources Targets Large Gold Deposits in Zimbabwe

Kavango Resources, a London Stock Exchange-listed mineral exploration company, is investing in exploration projects in Zimbabwe’s mining sector.

By Patricia Rwafa

Kavango’s projects in Zimbabwe include Hillside and Nara. Hillside has the potential to host a bulk mineable gold deposit, while Nara covers four historic underground mines with a total recorded production of 92,000 ounces of gold.

As announced on X, the exploration data is considered critical for attracting investors and determining the resources to be committed to exploiting a mineral. The absence of extensive exploration work over the years has resulted in the country failing to determine the extent of its entire mineral wealth.

Kavango Resources is targeting world-class base and precious metal discoveries in Zimbabwe and Botswana. The entity, which has footprints in Matabeleland, is pursuing projects including the Hillside Project and Nara.

According to Ben Turney, CEO of Kavango Resources:

“The Hillside Project contains a historic high-grade underground mine that produced a reported 18,000 ounces of gold from ore at a grade of 7.7 grams per tonne over a strike length of more than 350m.

Kavango has identified multiple zones with the potential for scheelite and gold production parallel to the trend responsible for historical production.

Within these zones, the company has designated three prospects as a priority due to their near-surface, bulk mining potential. Hillside has the potential to host a bulk mineable gold deposit. The company has entered an exclusive option to acquire the asset.

On the other hand, Nara covers four historic underground mines with a total recorded production of 92,000 ounces of gold. The average grade of ore mined was 9.76 g/t. In addition to gold, the historic mines also produced credits of tungsten and silver.

The project has also supported continuous surface small-scale mining and custom milling over the last 30 years. This has generated an estimated 150,000 to 250,000 tonnes of tailings, which presents an opportunity for potential near-term revenue generation.”

The country has over 60 recorded minerals, but only 10 are being actively mined according to Minister of Mines and Mining Development Hon Winston Chitando. The rest will be mined once there is sufficient exploration and resource definition.

1...194195196...684Page 195 of 684