Mining ZimbabweLatest Mining News, Policy and Industry Updates

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.”

The capital city of Zimbabwe, Harare, is poised to lead the charge in promoting electric vehicles (EVs) as part of its commitment to fostering a green energy revolution, announced the city’s Mayor, Jacob Mafume.

Mayor Mafume unveiled bold initiatives aimed at placing Harare on the map for clean energy, aligning with global efforts to achieve Sustainable Development Goals (SDGs) by 2030.

Under the City Council’s Energy policy, approvals for new service stations will now require the inclusion of clean energy equipment, such as vehicle charging ports.

Mayor Mafume emphasized the importance of integrating EV infrastructure into the city’s urban landscape, ensuring that every new service station provides charging ports for electric vehicles. This proactive approach underscores Harare’s commitment to embracing sustainable transportation alternatives and reducing carbon emissions.

Speaking about the city’s vision for promoting EV adoption, Mayor Mafume highlighted the need for strategic planning and collaboration across various sectors. “Every service station will have to have a charging port for electric vehicles going forward,” he stated.

“We are also going to add more incentives towards the use of electric cars as we go forward.”

The Mayor said that Harare aims to incentivize electric vehicle ownership by providing designated parking slots for EVs in urban areas. This initiative not only encourages residents to transition to electric transportation but also contributes to reducing traffic congestion and air pollution in Harare’s bustling streets.

Harare’s vision aligns with global trends towards sustainable energy and transportation. The International Energy Agency (IEA) projects a significant increase in electric vehicle adoption over the coming decades, with EVs accounting for a substantial portion of new vehicle sales worldwide. As countries strive to meet their climate targets and reduce dependence on fossil fuels, the transition to electric mobility is becoming increasingly imperative.

Zimbabwe, like many nations, has committed to achieving the SDGs by 2030, with Goal 7 specifically focusing on ensuring access to affordable, reliable, sustainable, and modern energy for all. By promoting EVs and investing in clean energy infrastructure, Harare is taking proactive steps towards fulfilling this global mandate and contributing to a more sustainable future for its citizens.

Harare’s “eagerness to promote EVs signifies a paradigm shift towards sustainable transportation and energy solutions. By embracing electric mobility and integrating EV infrastructure into its urban landscape, the city is not only driving the green energy agenda forward but also positioning itself as a leader in sustainable development within the region,” Mayor Mafume said.

As Zimbabwe strives to achieve its SDGs and address the challenges of climate change, initiatives like these demonstrate the transformative power of local action in shaping a cleaner, greener, and more resilient future for all.

However calls for Zimbabwe to produce Lithium batteries which are key to the storage of energy, grow louder and louder every day.

Lithium producer Bikita Minerals has lost a case in which it had approached the High Court seeking an interdict against Aurion Resources over some lithium ore it claimed had been stolen from its mine, Zim Independent has reported.

Bikita Minerals dragged Aurion Resources, the officer in charge ZRP CID Flora and Fauna Unit in Masvingo and the officer commanding ZRP Masvingo province to the High Court over the ore.

However, Justice Sunsley Zisengwe in his determination said Bikita Minerals in its draft order did not state that second tests be done in South Africa.

He said Bikita Minerals sought the indulgence of the court to make the amendments to its draft order with the insertion of South Africa as the exclusive source of the second tests.

“Such a wholesale attempt to amend the terms of the order sought can only mean one thing. That such a course of action was never in the contemplation of the parties when they agreed to a second opinion in respect of the lithium ore samples.

“Ultimately, therefore, I do not believe the applicant has established a clear right to have the samples sent exclusively to South Africa for a second opinion.

“A second opinion has already been procured albeit one not favourable to the applicant. The application, therefore, stands to be dismissed on that basis,” Justice Zisengwe ruled.

He also dismissed the application for the interdict on account of Bikita Minerals’ failure to establish a clear right.

“Even if he had established a clear right the application would still have failed on the basis of the failure by the applicant to show absence of an alternative remedy.

“Accordingly, the application for a final interdict is hereby dismissed with applicant meeting first respondent’s costs of suit,” the judge ruled.

The core of the matter was a dispute over the origins and ownership of a consignment of lithium ore seized by police on May 8 last year.

Bikita Minerals and Aurion Resources are both into lithium ore mining while the latter also sources lithium ore from small-scale miners.

According to the application, Bikita Minerals on May 5 last year, received information from the police that some lithium ore suspected to have been extracted from its mine, was at Aurion Resources’ premises.

The police seized the lithium ore, three days later, on suspicions that it had been stolen.

An agreement was made between the parties and the police that samples be subjected to metallurgical testing by a government assayer to establish if the lithium ore belonged to Bikita Minerals.

The test compared the seized lithium ore with samples originating from the Bikita Minerals and Aurion Resources mines.

There are three types of lithium ore namely Petalite, Spodumene and Lepidolite.

A metallurgical technician Netsai Makanga from the government’s Department of Metallurgy conducted the tests and the results were not supporting Bikita Minerals’ claim.

Criminal proceedings were also instituted against the person who was found in possession of the ore on the basis that the mineral had been stole.

However, the court ordered that the ore be released to Aurion Resources but Bikita Minerals challenged the release opting for a second test.

The second tests were then conducted by Glenda Farirepi, the chief chemist at the Department of Metallurgy with the results indicating that the ore did not belong to Bikita Minerals.

Bikita Minerals, however, insisted that the second tests did not constitute a second report arguing that they were obtained from the same institution.

The miner suggested that the second tests be done in South Africa saying that the purported second opinion did not qualify as a second opinion.

However, Aurion Resources challenged the move arguing that the timeline for the obtainment of a report from South Africa could not be met because of the red-tape involved in government systems which required Cabinet authority for samples to be taken abroad for analysis.

Aurion Resources insisted that it owns the disputed lithium ore arguing that Bikita Minerals filed a police report under the mistaken belief that the ore belonged to it.

It also argued that Bikita Minerals was constantly changing goal posts in the sense that what was agreed was that a second opinion be obtained to determine the origins of the disputed lithium ore.