Mining ZimbabweLatest Mining News, Policy and Industry Updates

Despite facing intermittent power disruptions and challenging ground conditions, the country’s second-biggest platinum group metals (PGM) producer, Mimosa Mining Company, has demonstrated remarkable resilience with a notable 13% increase in production.

by Rudairo Mapuranga

According to Impala Platinum Holdings Limited (Implats), which holds a 50% stake in Mimosa, the company’s strategic processing approach has been instrumental in navigating through these adversities, allowing it to maintain stability and even thrive in a demanding operating environment.

In its production report for the period ended 31 March 2024, Implats noted that during the quarter, Mimosa encountered sporadic regional power disruptions and difficult ground conditions. However, the integration and commissioning of the optimized plant project in the prior comparable quarter proved to be a game-changer. Despite a 5% decline in milled 6E head grade to 3.59g/t, Mimosa achieved a significant 13% increase in concentrate production to 63,000 6E ounces. This impressive result was attributed to improved process recoveries, highlighting the efficiency of Mimosa’s processing strategy.

“Mimosa navigated sporadic regional power disruptions and difficult ground conditions in the period but benefited from processing stability following the integration and commissioning of the optimized plant project in the prior comparable quarter. Milled volumes of 715,000 tonnes increased by 10% and, despite a 5% deterioration in milled 6E head grade to 3.59g/t, production in concentrate increased by 13% to 63,000 6E ounces, benefiting from improved process recoveries,” Implats said.

According to Implats, over the nine months ending 31 March 2024, Mimosa continued to deliver strong performance despite the challenges posed by poor ground conditions. The company’s mining operations remained robust, supported by improved plant stability and recoveries. Despite a 4% decline in 6E head grade to 3.61g/t, Mimosa recorded a 5% increase in 6E concentrate production, reaching 189,000 ounces. This achievement underscores Mimosa’s ability to optimize its operations and mitigate the impact of external factors on its production output.

“Mimosa benefited from strong mining performance and improved plant stability and recoveries in the period, which countered the grade impact of poor ground conditions. Milled throughput increased by 5% to 2.14 million tonnes and, while 6E head grade declined by 4% to 3.61g/t, 6E concentrate production of 189,000 was 5% higher than the prior comparable period,” the group said.

Mimosa’s success amidst adversity can be attributed to its proactive approach to operational efficiency and strategic planning. By investing in optimization projects and prioritizing stability in its processing operations, Mimosa has been able to maintain consistent production levels and even achieve growth in challenging times. Moreover, the company’s commitment to innovation and continuous improvement positions it strongly for future success in the dynamic PGM market.

London Stock Exchange-listed mining and exploration junior, Kavango Resources, is spearheading advancements at its Hillside gold project in Matabeleland, marking significant strides toward establishing Western Australia-style open pit gold mines in Zimbabwe.

by Rudairo Mapuranga

The transition to open pit mining carries promising implications for Zimbabwe’s gold industry, mirroring the success seen in Australia’s gold production.

According to Kavango CEO Ben Turney, the recent drill assays and IP survey results from the Hillside project are advancing Kavango towards its objective of developing Western Australia-style open pit gold mines in Zimbabwe.

Turney said the exploration and drilling program initiated by Kavango at its Hillside project has yielded remarkable results, surpassing initial expectations. Recent drill assays from Hillside Prospects 2 and 4 unveiled substantial gold findings at shallow depths, underscoring the project’s open pit mining potential. Induced Polarization (IP) surveying further revealed promising shear zones, indicative of potential large mineralized ore bodies suitable for open pit mining.

CEO Ben Turney also emphasizes the alignment of Zimbabwe’s geology with Western Australia’s, highlighting the vast economic opportunities awaiting exploration and development.

“Open pit mining has become the dominant style of mining in Western Australia and has been the primary driver behind Australia’s emergence as the world’s leading gold producer in recent decades.

“Zimbabwe’s geology mirrors that of Western Australia, and the country has a rich history of high-grade gold mining across its greenstone belts. However, Zimbabwe’s potential to host a multitude of large-scale, bulk mineable gold deposits remains largely undeveloped. This presents the nation with immense economic opportunity.

“Kavango has identified a strong pipeline of claim packages covering historic high-grade gold mines. We are now applying modern exploration and drilling techniques across three of these to assess their open pit potential and develop bulk mining operations,” he said.

According to the CEO, as Kavango continues to execute its exploration plans with precision and diligence, the company remains poised to unlock significant value and contribute to Zimbabwe’s ambition of becoming an upper-middle-income economy by 2030.

“In doing so, our objective is to contribute to the 2030 Vision of turning Zimbabwe into an upper-middle-income economy,” Ben Turney said.

Kavango has been in the market to raise about £3.08 million (US$3.86 million) by issuing 257.11 million new ordinary shares at a price per share of 1.2 pence through an underwritten accelerated book build. The capital raise is meant to fund its Zimbabwe and Botswana projects.

Turney said Kavango’s next steps at Hillside will be to test the gold-bearing potential of the shears it has interpreted at Prospects 2 and 3 with a series of drill holes. This strategic move aims to validate the potential for a bulk mineable gold deposit across the entire shear zone at both prospects. The Company eagerly anticipates assay results from Hillside Prospects 1 and 4, which will provide further insights into the project’s viability.

Meanwhile, drilling is also underway at its Nara project to explore a 200m wide by 5km long strike corridor within the property, interpreted as a potential shear zone. These proactive measures underscore Kavango’s commitment to thorough exploration and the identification of promising mineralization zones.

The company has rapidly begun to make strong progress in its goal of developing open pit mines in Zimbabwe. The most advanced endeavours are evident at Hillside prospects 2 and 4, where promising results have fueled optimism for future development. However, the remaining prospects, including Nara and Leopard, also hold significant potential, contributing to a diversified portfolio of opportunities for Kavango.

Zimplats’ parent company, Implats, a leading platinum group metals (PGM) producer, has reported a mixed bag of results, with strong production and demand offset by lacklustre PGM prices, underscoring the need for the company to stay focused on cost management and operational efficiency to navigate the challenging market conditions.

Patricia Rwafa

Implats announced increased production on Tuesday, April 30th.

This comes despite weak prices for PGMs, although demand remains strong.

In the nine months that ended on March 31, the Johannesburg Stock Exchange-listed company recorded a 16% increase in total six-element (6E) group production volumes to 2.73 million ounces, with a 25% gain in managed volumes to 2.17 million ounces, a 4% increase in joint venture (JV) production to 410,000 oz, and a 31% decrease in third-party receipts to 149,000 oz.

Gross 6E refined and saleable production increased by 15% to 2.47 million ounces in the nine months, and 6E sales volumes increased by 11% to 2.52 million ounces.

According to CEO Nico Muller:

“Despite continued macroeconomic and geopolitical uncertainty, demand from our contractual customers remains robust, with elevated additional volumes requested via spot sales during the third quarter.

“PGM pricing remains lacklustre, however, with notable volatility in both platinum and palladium reflecting the continued influence of investor activity.

“Margins remain compressed, and we are pursuing a set of actions to ensure that each of our operations is set up to more robustly deliver sustainable free cash flow through the PGM cycle.

“It’s imperative that each of our assets operates within the appropriate volume, cost, and capital parameters relative to the current pricing environment and the broader operating context.”

“We delivered a commendable operational performance while navigating several challenges in the period under review. Investigations into the 27 November tragedy at 11 Shaft progressed, and the production ramp-up at the operation remains on track.

“The rebuild of Impala Rustenburg’s Number 5 furnace was completed, and the first matte has now been tapped. Notable operational performances were delivered by Zimplats and Mimosa, and at Impala Canada, where mining and milling were rebased,” he said.

In late April, Implats embarked on Section 189 (3) consultation process at its South African operations, which could affect 3,900 positions, equating to a 9% reduction in labour across the group’s Impala Rustenburg, Impala Bafokeng, and Marula operations, as well as at the corporate office, which is targeting a 30% reduction in head office costs.

Implats remains on track to deliver within the guided group parameters for the full 2024 financial year.

MARCH QUARTER

In the three months to March 31, gross group 6E production increased by 13% to 827,000 oz. Tonnes milled at managed operations increased by 16% to 6.48 million tonnes during the quarter. The maiden inclusion of Impala Bafokeng and higher milled volumes at Zimplats offset lower throughput at Impala Rustenburg, Marula, and Impala Canada.

The 6E milled grade of 3.64 g/t was stable, and 6E production at managed operations increased by 17% to 657,000 oz. The 6E production from the JVs at Mimosa and Two Rivers increased by 7% to 134,000 oz.

At Impala Refining Services, third-party 6E receipts of 37,000 oz were 23% lower than the prior comparable quarter as two contracts concluded in the financial year 2023. There were negligible production losses owing to load curtailment in South Africa in the quarter, although regional electricity generation and distribution challenges did pose headwinds to operating momentum in Zimbabwe.

Refined 6E production, which includes saleable ounces from Impala Canada and Impala Bafokeng, increased by 8% to 717,000 oz.

Implats finished the period with 410,000 6E ounces of excess inventory and 6E sales volumes of 824,000 oz, including saleable production from Impala Canada and Impala Bafokeng, which increased by 10% and were 3% lower on a like-for-like basis from those in the prior comparable quarter, with some destocking of refined inventory to offset the impact of the planned furnace maintenance.

Prospect Resources has made significant strides in expanding its portfolio, acquiring a controlling stake in the highly prospective Mumbezhi Copper-Cobalt Project in Zambia and reported encouraging drilling results from its lithium projects in Zimbabwe and Namibia.

Patricia Rwafa

As announced on April 30, 2024, Prospect Resources acquired an 85% interest in the Mumbezhi Copper-Cobalt Project in Zambia. The project has significant exploration potential and is located in the highly prospective Zambian Copperbelt. Phase 4 drilling commenced at the Step Aside Lithium Project in Zimbabwe, targeting extensions and high-grade intersections.

Final results from Phase 3 drilling at Step Aside confirmed significant lithium mineralization and extensions to the WinBin deposit. Phase 2 drilling commenced at the Omaruru Lithium Project in Namibia, targeting prospective geochemical anomalies.

Prospect Resources holds $19.2 million in cash and zero debt as of March 31, 2024.

– 63.1m @ 1.17% Li2O from 74.9m, including 41.0m @ 1.49% Li2O from 97.0m.
– 17.0m @ 1.54% Li2O from 52.0m, including 9.0m @ 2.13% Li2O from 56.0m.
– 9.0m @ 1.12% Li2O from 90.0m.
– 1.5m @ 1.38% Li2O from 17.6m.

Prospect achieved a 100% ownership stake in Omaruru, following the successful execution of an agreement with Osino Resources to acquire the residual 60% interest for US$75,000 in cash.

According to Prospect’s Managing Director and CEO, Sam Hosack:

“The successful culmination of our transactional strategy for the world-class Mumbezhi Copper-Cobalt Project was an excellent way to round out a productive Q1 and lead into an exciting June quarter. This large-scale asset, hosted in the Zambian Copperbelt, significantly expands and diversifies our battery and electrification metals portfolio.

Pending targeted future exploration success, it has the strong potential to advance into a low-cost, open-pit mine development in the long term. We are excited to see where initial exploration and resource drilling takes us with this well-positioned, large-scale critical mineral project.”

“At Step Aside, final results from our Phase 3 program have produced further intercepts of robust lithium mineralization, highlighting additional extensions to WinBin at depth and along strike, while also remaining open to the south.

We now know that the broader mineralization zone continues further northwest, through the conjoined WinBin/Pegmatite C extension. We are extremely pleased with the results to date from Step Aside, and with Phase 4 underway, we will continue our exploration agenda targeting further extensions to the current mineralized zone and further delineation of the footprint of this high-grade lithium deposit.”