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ZimAlloys Allocates $3 Million for Advanced Three-Phase Chrome Exploration Program

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ZimAlloys Allocates $3 Million for Advanced Three-Phase Chrome Exploration Program

Kuvimba Mining House (KMH)-owned ZimAlloys, a leading chrome alloy producer, has embarked on an ambitious exploration campaign, allocating a budget of US$3 million to a three-phase program.

By Rudairo Mapuranga

This initiative aims to quantify and expand the company’s resource base, positioning ZimAlloys as a global leader in proven chrome reserves.

In an interview with Mining Zimbabwe, ZimAlloys Managing Director Deric Dube provided technical insights into the exploration strategy. The first phase involves geophysical surveys, including magnetics and aeromagnetic studies, across the Jopo, Nema, and Inyala regions. The second phase, extending to the Jopo and Lalapanzi areas, will focus on physical drilling, targeting an initial 3,000 meters at the Nema and Jopo sites.

“We have a three-phase exploration program with a budget just under $3 million. Phase one has already commenced with geophysics, magnetics, and an aeromagnetic survey in Jopo, Nema, and Inyala. Phase two will expand into Jopo and Lalapanzi, where we will begin physical drilling, starting with about 3,000 meters in Nema and Jopo, potentially extending to Inyala as well. This is just the beginning of a much larger geological plan,” explained Dube.

ZimAlloys’ current operations produce lumpy chrome ore with a minimum grade of 40%, alongside a chrome-to-iron ratio of approximately 2.1. However, Dube indicated that deeper mining operations are expected to yield significantly higher grades, with chrome content rising to 44-45% as extraction depth increases.

“Our lumpy resource generally comes out at about 40% minimum, with a chrome-to-iron ratio around 2.1. As we mine deeper, the material becomes more competent, and by the time we reach underground operations, we expect grades of 44-45%, which will significantly improve the quality. The reduction in iron content will also lower electricity usage during smelting, which is crucial since power is one of our largest cost drivers,” said Dube, noting that electricity constitutes about 35% of their smelting costs.

ZimAlloys’ chrome concentrates are produced with a minimum grade of 46%, with typical grades averaging around 48%. In some cases, pockets of material reach the 50% mark, depending on the ore extraction location. This high-grade material is vital for maintaining strong contractual obligations, with Dube affirming that contracts typically require a grade of 48%.

“Our minimum grade for concentrates is 46%, with a typical grade of 48%. We sometimes reach the 50s, but this depends on the source of the material. Generally, our contracts stipulate a typical grade of 48% with a minimum of 46%,” Dube added.

Regarding ferrochrome production, Dube mentioned that ZimAlloys has set ambitious targets, aiming for a chromium content of 58%. The company is currently achieving 57.5% chromium from the furnace, with ongoing efforts to optimize output.

“Our target for ferrochrome is 58%, but last month we achieved 57.5% from the furnace. That’s the chromium content, while chromite refers to the oxide material,” Dube elaborated.

The exploration strategy laid out by ZimAlloys represents a significant technical and financial undertaking, aimed at expanding the company’s resource base and improving operational efficiencies.

The focus on deeper, high-grade ore bodies aligns with global trends in chrome extraction, where declining surface grades necessitate more complex and costly underground operations. Additionally, the company’s emphasis on reducing smelting costs through improved ore quality highlights the critical role of energy efficiency in ferrochrome production. As Dube pointed out, power remains one of the major cost drivers in smelting operations, and any reductions in energy usage will have a direct impact on overall operational costs.

ZimAlloys’ $3 million exploration program is not just a routine expansion—it’s a calculated move to secure a larger share of the global chrome market while enhancing long-term sustainability.

By focusing on high-grade, deep-level resources, the company is positioning itself to meet both current production demands and future market opportunities.

The phased nature of the exploration program also demonstrates a pragmatic approach to capital expenditure, ensuring that resources are allocated in stages to maximize returns on investment without overextending the company’s financial commitments.

With Chrome grades improving as mining operations go deeper and exploration activities expand, ZimAlloys is well on its way to becoming a dominant player in the global Chrome sector. The company’s ongoing commitment to high-quality resource extraction and operational efficiency will likely continue to yield positive results in the near future.

Policy Inconsistency Bad for Mining Investments in Zimbabwe

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Policy Inconsistency Bad for Mining Investments in Zimbabwe

Zimbabwe’s mining sector is a critical contributor to the country’s economy, with the government pushing to ensure the sector contributes significantly towards the achievement of Vision 2030, where Zimbabwe is expected to become an upper-middle-income economy by 2030.

By Rudairo Mapuranga

However, policy inconsistency, especially concerning currency regulation, continues to undermine investment confidence.

The recent call by former War Veterans Minister Ambassador Christopher Mutsvangwa for President Emmerson Mnangagwa to ban the use of foreign currency in favour of the Zimbabwe Gold Currency (ZWG) if implemented will be the latest in a series of policy shifts in past years.

Ambassador Mutsvangwa urged President Mnangagwa to “issue a Statutory Instrument (SI) making the local unit the sole legal tender.”

Addressing journalists at a Press conference yesterday, Mutsvangwa said the ZWG had to be saved through an SI making it the sole currency of trade.

“We are having a situation where on one side, I have my US dollars and on the other side, the currency is not the same,” Mutsvangwa said. “All these two currencies are mine. Then I cause inflation between the two currencies. I mean, what economics is that? What finance is that?

Mutsvangwa added: “So there’s an abuse of the system… but there’s a need, and this is not Zanu-PF, by the way, I’m speaking as a Zimbabwean.

“I just believe that the President’s inclination to say, let’s just put a statutory instrument and make ZWG the single currency of transaction is the best way to go, because it removes all the arbitrageurs,” Mutsvangwa said.

Such unpredictable changes have left investors and mining companies struggling to operate within an unstable financial environment, severely affecting mining profitability and long-term growth. More with the ZWG currency decline the future will not be so bright.

Currency Volatility and Its Impact on Mining

Zimbabwe’s frequent currency changes have worsened inflationary pressures, destabilizing the mining industry. After the Zimdollar collapsed under hyperinflation, the ZWG was introduced in April 2023. Yet, just a few months later, the ZWG has already lost 40% of its value, dropping from ZWG13.50 per US dollar to between ZWG25 and ZWG28 on the black market.

Mutsvangwa admitted that “people are trying to manipulate the system because the US dollars in the system are not a gift of the American government.”

This rapid depreciation has had a severe impact on mining companies, increasing the prices of essential goods and services. To avoid losses, many suppliers now demand payment exclusively in US dollars, adding further financial strain to the sector.

This environment is particularly difficult for mining companies like RioZim, which saw an increase in gold production of 1% in 2023 but still faced operational challenges due to currency instability. According to RioZim, despite their “improved gold production, operational costs remain high due to the unpredictable financial landscape.”

Forex Retention Policies – A Hindrance to Growth

The government’s foreign currency retention policy has been a significant barrier to growth in the mining sector. Currently, mining companies are required to surrender 25% of their foreign earnings to the Reserve Bank of Zimbabwe (RBZ) at the official exchange rate, which is far below the black market rate that some suppliers use to peg their equipment.

The Chamber of Mines Zimbabwe (CoMZ) has repeatedly voiced concerns over this policy, stating that it “severely impedes the growth of the sector,” as miners are left with insufficient foreign currency to cover operational expenses.

The discrepancy between the official and black market rates has left mining companies in a precarious position, forcing them to pay suppliers and service providers at inflated prices pegged to the black market rates. Despite generating foreign currency, mining companies struggle to keep up with the rising costs of wages, fuel, and equipment, resulting in reduced profitability and diminished capacity to reinvest in their operations.

Power Supply and Tax Challenges – Compounding the Problem

In addition to currency volatility, the mining sector has had to contend with high electricity tariffs and unreliable power supply. The Chamber of Mines Zimbabwe recently engaged ZESA, the national power utility, to address these issues, as frequent power outages continue to disrupt mining operations. The chamber highlighted the need for “consistent power supply and affordable tariffs” to maintain profitability.

The mining industry has also urged the government to reduce taxes, stating that “the current tax regime places an unsustainable burden on mining companies,” further affecting their ability to operate efficiently.

The Inflationary Spiral and Its Effects on Profitability

The rampant inflation caused by the devaluation of the ZWG has eaten into mining profitability. Since its introduction, the ZWG has quickly lost value, exacerbating inflationary pressures and driving up operational costs. Suppliers, unwilling to accept the unstable local currency, have shifted to demanding payments exclusively in foreign currency.

Mutsvangwa, addressing the issue, stated that “there is an abuse of the system” as both US dollars and ZWG circulate simultaneously, creating an inflationary spiral.

Mining companies, burdened by these rising costs, have struggled to maintain profitability. For example, RioZim reported that, while gold production increased, “operational challenges related to inflation and currency instability persist,” making it difficult to plan for the long term. The industry as a whole remains vulnerable to further currency devaluation, leading to uncertain financial projections and undermining investor confidence.

Investor Uncertainty and the Way Forward

The unpredictability of Zimbabwe’s currency policies has driven investors away, with many expressing hesitation in committing to long-term projects. Mutsvangwa’s suggestion to implement an SI making the ZWG the sole legal tender is likely to exacerbate these fears, as history has shown that such interventions tend to aggravate inflation and deepen currency instability. RioZim warned that while they have managed to improve production, “sustainable growth will require a more stable economic environment.”

The Chamber of Mines Zimbabwe has also emphasized that “investors require policy consistency and certainty” if Zimbabwe is to attract significant investment in its mining sector. Without stable, long-term policies, Zimbabwe risks missing out on major investment opportunities, which are essential to developing its mineral wealth.

In closing

The proposed ban on foreign currency, if implemented, would likely deepen the challenges faced by mining companies, erode investor confidence, and stall progress made in boosting production. The government must prioritize creating a stable economic environment by addressing inflation, revising forex retention policies, and ensuring consistency in its financial regulations. Only through these reforms can Zimbabwe’s mining sector thrive, unlocking its full potential and attracting the long-term investments it desperately needs. It is unlikely that Zimbabwe will fully “ZiG” the economy.

Gold Miners Smile as Gold Prices Hit Record US$2,520 Per Ounce

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Gold Miners Smile as Gold Prices Hit Record US$2,520 Per Ounce

Gold miners are smiling all the way to Fidelity Gold and Refinery (FGR) as gold prices today reached an unprecedented peak of US$2,520 per ounce, the highest on record.

By Ryan Chigoche

This historic spike is largely attributed to heightened demand for safe-haven assets, driven by escalating geopolitical tensions in the Middle East and increasing concerns over global economic instability.

The surge in gold prices reflects a broader trend of investors seeking refuge in safe-haven assets. This became particularly evident when the spot price exceeded the August high of US$2,400 per ounce, climbing to US$2,499 just a week ago. For context, the price of gold was US$2,041.34 in January this year. Investors have long viewed gold as a reliable store of value, especially during periods of political and economic uncertainty.

Since the beginning of this year, the price of bullion has been surging, reaching new highs and highlighting an increase in demand.

Recently, John Mushayavanhu, Governor of the Reserve Bank of Zimbabwe (RBZ), highlighted in his 2024 Mid-Term Monetary Policy Review that the ongoing ascent in gold prices is primarily driven by robust consumer demand, substantial investment flows from Asia, and active central bank purchases. These factors collectively underpin the recent record highs in gold prices, reflecting a strong shift towards assets perceived as stable amidst global instability.

“The surge was driven by continuous central bank purchases, Asian investment flows, resilient consumer demand, growing geopolitical uncertainty, and the anticipated interest rate cuts in advanced economies,” Mushayavanhu said.

“Several Emerging Markets and Developing Economies (EMDE) central banks contributed to the strong demand. Gold, uniquely among assets, typically appreciates during periods of geopolitical and policy uncertainty, including conflicts. Safe-haven demand for gold is expected to strengthen further in 2024, partly due to the high number of upcoming national elections worldwide,” Mushayavanhu added.

Gold has long been considered a reliable store of value, especially during times of economic turmoil. The 2008 global financial crisis saw gold prices surge as investors sought to protect their wealth from collapsing stock markets and unstable currencies. Similarly, during the COVID-19 pandemic, gold experienced significant gains as central banks around the world implemented aggressive monetary policies, further eroding confidence in traditional financial assets.

Zimbabwe, with its rich gold reserves, stands to benefit significantly from the rising gold prices. The mining sector, a cornerstone of the country’s economy, could see increased revenues as global prices climb. This boost could enhance export earnings, providing much-needed foreign currency to support the nation’s economic recovery efforts. The gold sector is already a major contributor to Zimbabwe’s economy, accounting for about 40% of the country’s total export earnings.

However, challenges remain. The sector must contend with issues such as illegal mining activities, outdated infrastructure, power shortages, and the need for more investment to maximize output. Additionally, regulatory frameworks must be strengthened to ensure that the benefits of rising gold prices are felt throughout the economy.

The Zimbabwean government has been making efforts to improve the mining sector’s productivity. Policies such as the introduction of gold trading platforms and the establishment of special economic zones dedicated to mining have been part of these efforts. Yet, without significant investment in modernizing equipment and infrastructure, as well as addressing the rampant issue of illegal gold mining, the country may struggle to fully capitalize on the current price surge.

While the soaring gold prices offer a significant opportunity for Zimbabwe’s economy, especially its mining sector, the full realization of these benefits will depend on addressing the persistent challenges within the industry. Strategic investment and robust regulatory measures are essential to ensure that Zimbabwe can sustain and maximize its gold production during this period of historic prices.

Zimbabwe Gold Buying prices per gram 13 September 2024

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Zimbabwe Gold Buying prices per gram 13 September 2024

Fidelity Gold Refinery (FGR) official gold buying prices/ gram. See the Zimbabwe gold buying prices per gram today, 13 September 2024.

SG 90% and ABOVE US$77.35/g
SG ABOVE 85% BUT BELOW 90% US$76.53g
SG ABOVE 80% BUT BELOW 85% US$75.71/g
SG ABOVE 75% BUT BELOW 80% US$74.89/g
SAMPLE BELOW 10g BUT ABOVE 5g US$73.66/g

Fire Assay CASH $77.76/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.

ZETDC to Enforce Smart Prepaid Billing Amid $5.7 Billion Debt Crisis

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ZETDC to Enforce Smart Prepaid Billing Amid $5.7 Billion Debt Crisis

The Zimbabwe Miners Federation (ZMF) has informed its members that the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) will switch large and medium power users to a smart prepaid billing system starting October 1, 2024.

By Rudairo Mapuranga

In a recent statement, ZMF CEO Wellington Takavarasha disclosed that ZETDC is owed ZW$ 5.7 billion across various customer segments, creating severe cash flow problems and threatening national energy security.

Takavarasha noted that ZETDC requires all customers to clear their arrears and prepay their bills by September 30, 2024. More details on the new system will be provided by the utility. Customers should contact their local ZETDC account managers for clarification.

“On September 4, 2024, the ZMF Secretariat was invited by ZETDC for an urgent update on the transition to the smart prepaid billing system,” Takavarasha said. Key points discussed were:

  1. ZETDC is owed approximately ZW $5.7 billion by customers across all segments.
  2. This debt has severely impacted operations, resulting in cash flow constraints that threaten service delivery and energy security.
  3. The migration to the smart prepaid billing system begins on October 1, 2024. Customers must clear arrears and prepay by September 30, 2024.
  4. Further implementation details will be communicated, and customers are encouraged to contact their local ZETDC account managers.

Takavarasha emphasized the urgency for customers to prepare for the transition and the serious impact of the debt crisis on energy security.

Pambili Natural Resources Launches Underground Drilling at Golden Valley Mine

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Pambili Natural Resources Launches Underground Drilling at Golden Valley Mine

Toronto Stock Exchange-listed Pambili Natural Resources Corporation has begun underground drilling at its Golden Valley Mine (GVM) in Bulawayo, aiming to extend the previously mined orebody and explore potential parallel zones.

By Patricia Rwafa

Pambili has contracted Shengela (Private) Limited to conduct the 600m diamond drilling program. This includes up to six holes, each with a maximum depth of 100m, using a Meter Eater drilling rig to produce an AXT (30 mm) core. The primary goal is to test the down-dip continuity of the orebody, with the initial holes (EADD001 to EADD003) drilled in a fan pattern at a -45° angle.

Pambili also aims to investigate a NW-trending shear identified from airborne geophysics. A scout hole (EADD004) will be drilled at a +5° angle, with two additional holes planned based on initial results.

The company’s drilling program focuses on identifying a production resource rather than a code-compliant mineral resource estimate. Assays from mineralized intersections will be submitted to an accredited laboratory in Zimbabwe to guide further drilling.

CEO Jon Harris stated that promising gold grades from previous drilling support the belief that historical mining stopped once the mineralized zone was mined out. Pambili’s program aims to identify new zones to provide a near-term ore source for GVM operations, with plans for further surface drilling to establish a compliant resource.

Bikita Minerals Launches Monthly Performance Bonuses to Boost Morale

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Bikita Minerals Launches Monthly Performance Bonuses to Boost Morale

SinoMine Group-owned Bikita Minerals, one of the country’s largest lithium spodumene and petalite producers, has launched a new initiative to boost employee morale and productivity by introducing monthly performance bonuses.

By Patricia Rwafa

The Lithium Mine, located in Bikita, Masvingo, is offering these bonuses in addition to the traditional 13th cheque and mid-year bonus.

The company has begun awarding its workforce monthly production bonuses, complementing the regular incentives of a 13th cheque and mid-year bonus. More than 1,000 employees have already benefited from this new scheme.

“Bikita Minerals recognises its employees as the driving force behind its success. To foster a culture of excellence, the company rewards its workers with monthly production bonuses, a mid-year bonus, and a 13th cheque,” the company stated.

Bikita Minerals also emphasized its commitment to employee welfare, ensuring workers are compensated well above the stipulated NEC rates, in compliance with Zimbabwean laws.

“The best employees are further recognized in December with individual prizes, and more than 20 employees are sent to China for a week-long experience,” the company added.

Britain in Talks with Government, Chamber for Greater Role in Zimbabwe’s Mining Sector

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Britain in Talks with Government, Chamber for Greater Role in Zimbabwe’s Mining Sector

The United Kingdom is advancing its role in Zimbabwe’s mining sector through discussions with key stakeholders. British officials told Mining Zimbabwe that they are negotiating with both the Ministry of Mines and the Chamber of Mines Zimbabwe (CoMZ) to formalize a strategic partnership as Zimbabwe aims to revitalize its mining industry and attract more foreign investment.

By Ryan Chigoche

The discussions reflect a broader UK interest in Zimbabwe’s mineral resources, which are crucial for global supply chains. British firms are exploring ways to contribute expertise in mining technology, finance, and environmental management to support Zimbabwe’s goals of increasing local value addition and ensuring responsible mining practices.

Currently, only a few British companies are involved in Zimbabwe’s mining sector, including Anglo American, Kavango Resources, and Cluff Africa, which have shown interest in further investments.

Martin Alsop, Deputy Development Director at the British Embassy in Harare, said on the sidelines of a recent event that talks are progressing with the government and the Chamber of Mines Zimbabwe to formalize partnerships. The aim is to increase UK involvement in the local mining sector, focusing on responsible mining and value addition.

“Mining is a relatively new area for us at the embassy, but we are in talks with both the Chamber of Mines and the ministry to formalize our partnership through an agreement,” Alsop stated. He emphasized the UK’s commitment to leveraging its mining expertise to support Zimbabwe, particularly in areas such as environmental, social, and governance (ESG) standards. “One of our key priorities is ensuring the mining we support is responsible, with good labour and environmental standards.”

Alsop also highlighted the importance of adding value to Zimbabwe’s mining sector.

“We understand that value addition is a priority for the government, and we are exploring how the UK can help. While the UK may not directly engage in large-scale processing, there are other ways we can contribute, such as through mining services, finance, and other support functions.”

Zimbabwe’s mining sector is highly diversified, with close to 40 different minerals, including platinum group metals (PGMs), chrome, gold, coal, lithium, and diamonds. The country holds the world’s second-largest platinum deposits and high-grade chromium ores, with approximately 2.8 billion tons of PGM and 10 billion tons of chromium ore. The sector contributes around 12% of the country’s GDP and 80% of national exports.

Opportunities in Zimbabwe’s mining sector extend beyond direct investment in mining. There is significant demand for heavy underground mining machinery, transportation infrastructure, and power generation solutions. The government’s push to increase domestic production of value-added mineral products will require larger capital investments compared to the current model of exporting unprocessed resources.

However, the UK’s involvement will need to navigate challenges, including economic sanctions, regulatory hurdles, and shifting political dynamics. UK investment in Zimbabwe’s mining sector has historically been significant, with British firms engaged in various roles, from direct mining operations to technological partnerships.

Zimbabwe has been implementing reforms to attract foreign investment, including efforts to streamline regulations and enhance transparency. While this presents opportunities for UK investors, it also comes with risks. The evolving regulatory landscape and ethical considerations surrounding investment—such as adherence to human rights and environmental standards—remain key.

Looking ahead, British companies are well-positioned to play a pivotal role in Zimbabwe’s mining sector, provided they can navigate the complex challenges and capitalize on emerging opportunities. The future of UK investment will largely depend on the stability of Zimbabwe’s regulatory environment and international relations.

ZimAlloys Revives Smelting, Targets 120,000 Tonnes Annual Ferrochrome Production

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ZimAlloys Revives Smelting, Targets 120,000 Tonnes Annual Ferrochrome Production

Kuvimba Mining House (KMH)-owned Zimbabwe Alloys (ZimAlloys) has reasserted itself as a leading alloy producer in Zimbabwe, with plans to become one of the largest high-carbon ferrochrome producers in the country, Mining Zimbabwe can report.

By Rudairo Mapuranga

ZimAlloys Managing Director Deric Dube confirmed that the company has commissioned its first smelter, the M1 smelter, which has the capacity to produce 10 tonnes of high-carbon ferrochrome per day.

He said the company is now focused on resuscitating additional smelters, including its largest, the A3 smelter, as part of a plan to ramp up production to 120,000 tonnes of high-carbon ferrochrome annually.

“Our plan is to eventually reach 120,000 tonnes of high-carbon ferrochrome production annually and then restart the smelting of other alloys further down the line. For now, we’re excited to be back in the smelting industry in Zimbabwe and to be a strong voice in that space. This means a lot to us, and to me personally, as I’ve had the privilege of being the Managing Director during the transition from no smelting to producing raw alloy, which you’ll see today. We’ve undergone two rounds of fundraising that have brought these projects to life. As you can imagine, raising capital is tough when you don’t have much money—no one wants to lend to you,” said Dube.

In addition to its smelting operations, ZimAlloys is also producing 8,000 metric tonnes of chrome concentrates per month, with plans to increase this figure by year-end.

“Our current operations produce about 8,000 metric tonnes of chrome concentrates on a monthly basis, and we are in the process of increasing that number. Over the last 12 months, we’ve opened or upgraded several facilities, either by building completely new plants or resuscitating old ones to leverage proven resources. We’ve restarted three chrome concentrator plants, nearly doubling our production compared to this time last year,” Dube explained.

ZimAlloys was once a dominant player in Zimbabwe’s ferrochrome industry but faced significant challenges in the early 2010s. After the company ceased smelting operations in 2013, it entered judicial management for nearly eight years due to financial difficulties and an inability to meet obligations to local and foreign creditors.

In 2019, Kuvimba Mining House took over ZimAlloys, which had been struggling under a heavy debt burden. Kuvimba invested substantial resources to clear the company’s debts and reposition them for growth, allowing ZimAlloys to start afresh and be free from the financial liabilities that had previously hampered its operations.

Under Kuvimba’s leadership, ZimAlloys has made a strategic comeback by focusing on reviving its core smelting operations and expanding its resource base. The company has embarked on significant capital investment, leading to the commissioning of new smelters and the reopening of old ones. The parent company, Kuvimba, holds 85% of ZimAlloys’ shares, while the remaining 15% is held by Co-Metal, a foreign entity responsible for marketing ZimAlloys’ products in international markets.

ZimAlloys has also diversified its portfolio, producing a range of ferroalloys, including high-carbon and low-carbon ferrochrome, ferrosilicon chrome, and ferromanganese. This diversification has allowed the company to mitigate risks in volatile markets by ensuring it is not reliant on a single product. The company is also focused on proving up its resource base to strengthen its balance sheet and ensure long-term sustainability.

With the support of Kuvimba Mining House and favourable market conditions, ZimAlloys is well on its way to reclaiming its position as one of Zimbabwe’s key ferrochrome producers. The company is aiming for long-term growth and sustainability, with plans to introduce additional smelting technologies and expand its production capacity in the near future.

ZimAlloys’ return to smelting after an 11-year hiatus marks a significant milestone in the revival of Zimbabwe’s ferrochrome industry, with the company set to play a crucial role in the country’s mining sector moving forward.

Prospect Resources Uncovers High-Grade Copper Intercepts at Mumbezhi Project

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Prospect Resources Uncovers High-Grade Copper Intercepts at Mumbezhi Project

Australia Stock Exchange-listed mining and exploration junior, Prospect Resources, has announced significant copper discoveries at its Mumbezhi Copper Project in Zambia.

By Patricia Rwafa

The company’s recent drilling program has unearthed high-grade copper mineralization, confirming the project’s potential for significant economic value. These findings represent a major milestone for Prospect as it continues to expand its regional operations.

In a press release on 9 September, Phase 1 diamond drilling has produced wide, high-tenor intersections that have extended high-grade copper mineralization at the key Nyungu Central deposit.

Significant new intersections from the current drilling include:

  • 64.3m @ 0.53% Cu from 241.7m (NCDD004)
  • 15.2m @ 0.73% Cu from 99.1m (NCDD001)
  • 12.0m @ 1.13% Cu from 36.0m (NCDD002)
  • 6.9m @ 0.80% Cu from 256.1m (NCDD003)

Newly sampled portions of visually mineralized diamond drill core from three previously unassayed holes completed in 2023 by the prior owner, GDC, also returned:

  • 53.0m @ 0.76% Cu from 215.0m and 15.0m @ 0.70% Cu from 43.0m (DD23-1)
  • 10.6m @ 0.55% Cu from 246.0m, including 7.0m @ 0.68% Cu from 246.0m (DD23-3)

The widths and copper grades have strongly supported and extended the historical Mumbezhi data sets, providing high confidence in the overall prospectivity of significantly growing the Nyungu deposits.

Three drilling rigs are currently on-site, with a fourth mobilizing in September to accelerate the Phase 1 program for the remainder of 2024.

Sam Hosack, Prospect’s Managing Director and CEO, commented:

“These initial results from Phase 1 drilling at Mumbezhi are highly revealing. In acquiring Mumbezhi, it was our strong belief that this advanced exploration project had large existing deposit growth potential plus regional discovery prospectivity. These initial results have already demonstrated the former dynamic and demand that we accelerate our drilling efforts.

“We have also recently commenced a ground-based Induced Polarisation survey targeting five regional areas, including the Kabikupa prospect, which has previously returned significant historic drill intercepts. This work is an exciting first step in interrogating the extent of the regional prospectivity at Mumbezhi, as I alluded to above.

“Our recent capital raising has funded the delivery of key exploration and project advancement milestones at Mumbezhi over the next 12 months. This includes targeting the declaration of a maiden JORC-reportable Copper Mineral Resource estimate for the Nyungu deposits during Q1 2025.

“Finally, I want to emphasize that we are serious about advancing the Mumbezhi Project rapidly in all key respects. To that end, and among a range of project workstreams, our Environmental and Social Impact Assessment (ESIA) studies are advancing well for full reporting by the end of 2024, which will support the completion of a Scoping Study, coinciding with the maiden Mineral Resource estimate declaration next year.”

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