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ZINIRE to Launch Rock Engineering Forum at MSU

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ZINIRE to Launch Rock Engineering Forum at MSU

In an effort to ensure students find practical solutions to the world of rock mechanics challenges, the Zimbabwe National Institute of Rock Engineering (ZINIRE) will launch the Midlands State University (MSU) ZINIRE Young Rock Engineering Forum on Friday.

Rudairo Mapuranga

Speaking to Mining Zimbabwe, MSU Association of Students in Mining President Ope Muranda said the launch will be officiated by ZINIRE President Renius Tirivabaya, accompanied by the Institute Vice President Omberai Mandingaise and the Secretary General Eng Chikwiri.

He mentioned that the students are determined to ensure a deeper understanding of the world of rock engineering for all students.

He also expressed that the forum’s launch will ensure students are prepared to come up with solutions to tackle the fall of ground in the artisanal and small-scale mining industry.

“We want the students in Mining to gain a deeper understanding of the world of Rock Mechanics as we try to find practical solutions to real-world rock mechanics challenges that Zimbabwe is facing in small-scale mines. The symposium will help students prepare for the future of mining as we delve deeper,” he said.

Mimosa hit by metal price decline, retrenches Managers and Supervisors

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Mimosa hit by metal price decline, retrenches Managers and Supervisors

Mimosa, Zimbabwe’s second largest platinum-producing mining company, recently undertook a significant workforce reduction, retrenching 33 managers and supervisors due to a persistent 35% decline in metal prices since April 2023.

In response to the challenging market conditions, nine of the affected employees opted for early retirement, while 24 chose voluntary separation packages, as detailed in a company statement released on the 5th of February 2024.

“Metal prices have been on a downward trend since April 2023 and remain depressed to date, having decreased by up to 35% during this period. This decline has significantly impacted our cash flow and profitability, and the outlook suggests that prices will continue to remain depressed in the medium term,” the statement read in part.

The company said its taking steps to minimise impact including capital expenditure curtailment, cost reduction initiatives, and cash conservation efforts among others.

“In response to these challenging market conditions, we have implemented several measures to ensure the viability of our business in the low-price metal environment. These proactive steps include capital expenditure curtailment, cost reduction initiatives, and cash conservation efforts,” the company said.

A voluntary separation package was offered to twenty-four employees, while nine opted for early retirement.

“Furthermore, given the prevailing economic landscape, we found it necessary to review our staffing structures to optimize efficiency. As a result, a staff rationalization exercise was conducted, affecting thirty-three managerial and supervisory employees. To address this, a voluntary separation package was offered to twenty-four employees, while nine opted for early retirement. At this stage, no further rationalization of the permanent staff complement is planned,” the company continued.

It is crucial to emphasize that people remain the most important asset of our business, defining who we are and serving as the primary source of our success. Despite the challenges, we have actively engaged our employees in all the processes implemented, fostering a sense of unity to maintain morale and continue achieving our production targets.

Zimbabwe gold buying prices/ gram 5 March 2024

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Zimbabwe gold buying prices/ gram 5 March 2024

Fidelity Gold Refinery (FGR) official gold buying prices/ gram. See the Zimbabwe gold buying prices/ gram today 5 March 2024.

SG 90% AND ABOVE US$63.74/g
SG ABOVE 85% BUT BELOW 90% US$63.06g
SG ABOVE 80% BUT BELOW 85% US$62.39/g
SG ABOVE 75% BUT BELOW 80% US$61.72/g
SAMPLE BELOW 10g BUT ABOVE 5g US$60.70/g

Fire Assay CASH $64.08/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.

Kavango Begins 16-line KM IP Over Four Prospects at Hillside

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Kavango Begins 16-line KM IP Over Four Prospects at Hillside

London Stock Exchange-listed Southern Africa-focused metals explorer, Kavango Resources plc, has commenced ground-induced polarisation (IP) surveys over four Hillside Gold Projects in Bulawayo.

Rudairo Mapuranga

According to the company’s CEO, Ben Turney, Kavango is completing 16-line km of IP survey lines over targeted areas within four prospects on the Hillside Project.

He said surveys are designed to identify sulphide bodies associated with high-grade gold-bearing shear structures related to historical and artisanal workings.

Turney also mentioned that four diamond core holes have been completed for a total of 1,306m at four prospects on the Hillside Project gold targets. Visual observations from the cores are encouraging, and samples are awaiting export permission for assay testing.

He added that an additional 1,400m of diamond drilling is planned to test targets identified by the current IP survey programme and to extend intersections observed in recent drilling.

“We have now drilled four of the Hillside prospects, and the initial visual inspections are promising. We brought forward the Induced Polarisation (IP) surveys here based on visual observations of cores and other field measurements taken by our team. While we must await the assay results for confirmation of possible gold values, we feel confident to continue further exploration at Hillside.

“IP surveys can be used to map underground metal mineralisation that is associated with gold. This can be a powerful exploration tool to plot the extent of possible ore bodies. The extra IP data will help guide future drilling by providing Kavango with focused target areas,” Turney said.

Hillside Project Update

Four diamond core holes have been completed for a total of 1,306m at Hillside over four prospects. The core has been logged, cut, and sampled, with selected samples being sent for shipment to a laboratory for assay testing.

Visual observations from the cores are encouraging. These visual intersections are coincident with multiple known mineralised zones projected down from the surface and are associated with sulphides and alteration.

Kavango’s drilling objective is to acquire representative intersections from multiple gold-bearing structures at the prospect of improving its understanding of their individual mineralisation style, extent, distribution, and potential grade. Kavango will use this information to inform follow-up drilling and assess the potential for hosting bulk-mineable gold deposits.

Kavango has placed a contract for 16-line kilometres of IP survey lines over targeted areas within the four prospects at Hillside. The work is now in progress.

The company will follow Initial Gradient Array IP on 25m spaced lines with IP sections to aid drill planning. The survey lines are designed to bisect the extent of historic and artisanal workings along with Kavango’s recently completed scope drilling sections. The IP surveys are planned to target sulphide-associated high-grade gold hosted in quartz veins along shear structures.

Kavango is planning an additional 1,400m of diamond drilling to test targets identified by the IP survey and further assess intersections observed in recent drilling.

The planned intersection depth for each of the prospects is up to 350m, ensuring coverage of both the current observed sulphide intersections and the anticipated IP targets. Subject to results, Kavango plans to use the drilling to inform follow-up drilling targeting a bulk-mineable gold discovery.

Zimbabwe Discovers Higher Priced Oil in Muzarabani Exploration

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Zimbabwe Discovers Higher Priced Oil in Muzarabani Exploration

Oil and gas exploration in the Muzarabani-Mbire district has yielded significant results, with the government of Zimbabwe confirming the discovery of light oil.

This type of oil fetches higher prices, requires less refinery purification, and produces a higher percentage of diesel and gasoline.

Rudairo Mapuranga

Speaking to the Media at a press conference held on Monday, the Minister of Mines and Mining Development, Hon Zhemu Soda, stated that, in addition to natural gas, the investor Geo Associates and its partners, Invictus Energy and One Gas Resource, undertaking exploration at Mukuyu-2 exploration well have discovered light oil, helium, and hydrogen.

“The results are that the natural gas is of high quality with minimal impurities, and there is no hydrogen sulphide in the samples (which is an undesirable constituent in oil and gas). Above all, the discovered oil falls into the light oil classification. This classification produces diesel, petrol, as well as jet A1. The presence of helium and hydrogen, which has also been confirmed, becomes a welcome bonus from the Mukuyu deposit,” Minister Soda said.

According to Minister Soda, reserve fluid samples by Invictus Energy show that there is an estimated 14-22 barrels of condensate/light oil for every one million standard cubic feet of gas. The natural gas is of high quality with minimal impurities, and there is no hydrogen sulphide in the sample, with CO2 being less than 2%.

Invictus Energy Managing Director Scott McMillan said Mukuyu-1 mud gas analysis results also confirmed the presence of light oil and gas condensate yields of 30-135 barrels/MMscf and high-quality natural gas with minimal impurities.

McMillan stated that the preliminary analysis from Mukuyu-2 and results from Mukuyu-1 are consistent with Invictus’ geological modelling, which shows increasing liquid hydrocarbon content in the south of Mukuyu towards the Basin Margin, where multiple drill-ready prospects have been mapped, and increasing dry gas contribution from the deeper kitchen and higher maturity source rock to the north of the Mukuyu structure.

The preliminary gas isotope analysis from processed downhole reservoir fluid samples in Mukuyu-2 is consistent with mud gas samples from comparable depths, allowing for additional insights to be generated from the extensive suite of samples gathered from the Mukuyu-1 and Mukuyu-2 wells.

McMillan also mentioned that consistent with the Mukuyu-1 results, gas samples from Mukuyu-2 show a general increasing dryness (lower liquid hydrocarbon/condensate yield) with depth.

“We are extremely pleased with the early results from the downhole reservoir fluid sample analysis, which confirms a large and rich gas-condensate discovery at Mukuyu. The analyzed samples demonstrate a consistent, high-quality natural gas composition, exhibiting low inert content, containing less than 2% CO2, and nil H2S, which will require minimal processing. The results from Mukuyu-2 are consistent with our geological modeling of the Cabora Bassa Basin, and the presence of both light oil and gas-condensate provides us with confidence as we prepare for the next phase of our appraisal program and work towards the monetization of the Mukuyu gas discoveries and further exploration of our exciting portfolio of multiple drill-ready prospects, substantially enhanced by the positive results from Mukuyu,” McMillan said.

Caledonia Trading update for the year ended December 31, 2023

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Caledonia Trading update for the year ended December 31, 2023

Caledonia Mining Corporation Plc provides the following trading update for the year ended December 31, 2023.

Caledonia reports that Blanket Mine has continued to perform well since the end of the quarter ended September 30, 2023 with full year production for 2023 of 75,416 ounces. As a result, the Company expects to report revenue for the full year in line with market expectations.

However, increased operating costs for 2023 and several significant one-off, non-operating costs in the final quarter of the year have resulted in reduced profit for the full year. The increase in operating costs comprises of higher than expected overtime payments and power costs at Blanket Mine. In relation to non-operating costs, general and administrative costs rose with global inflation and these also included higher than expected staff termination costs.  The Company also encountered higher financing costs, including hedging, interest, and foreign exchange losses and a one-off impairment charge in relation to a VAT refund claim at the Blanket Mine solar project.

As a result of the above, the Company now expects to report an adjusted profit before tax for the year ended December 31, 2023 materially below market expectations.

Further information on the increase in costs will be provided in the operating and financial results for the quarter ended December, 31 2023.

Reassuringly, a significant proportion of these cost increases are not expected to be carried through into 2024. Specifically, costs associated with Bilboes are now reduced to care and maintenance only and the project was cash neutral in the fourth quarter of 2023. Production and costs at Blanket in 2024 to-date are also within expectations of full year guidance, and the Company is introducing measures aimed at reducing electricity costs over the medium term.

At December 31, 2023, the Company had cash on hand of $6.7 million and overdrafts and term loans of $17.7 million.

Notice of Results

The Company announces that its operating and financial results for the quarter ended December 31, 2023 will be published on or before March 28, 2024.

Mark Learmonth, Chief Executive Officer, commented:

“It is regrettable that, at a group level, we have been adversely affected by a series of higher-than-expected costs in the second half of 2023 which have had a negative effect on the full year profitability. The performance of Blanket Mine remains strong and, notwithstanding some unforeseen overtime and power cost issues in the second half, has met guidance and produced a robust performance for the second half of 2023.

“A number of the other cost items are not anticipated to be recurring, whereas others have arisen from our decisions to invest in the business, most notably around personnel and advancing the Bilboes sulphide project. I am confident that many of these will not recur in 2024 which has started positively and I look forward to the future with optimism as we pursue our goal of becoming a multi-asset production company.”

Vere joins a Lesotho diamond mine as Head of operations

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Vere joins a Lesotho diamond mine as Head of operations

Engineer Tirivashe Eddington Vere has now taken the position of Head of Mining Operations for Firestone Diamond Pvt Ltd (Liqhobong Mine) which is one of Lesotho’s largest diamond producers by volume.

The Lesotho-based company headhunted the Mining Executive and the offer resonated with his passion for working with diverse people and business turnaround. Joining a diamond operation will rekindle his passion for diamonds, drawing on his extensive experience to guide Lesotho’s mining endeavours.

Diamonds and Rio Tinto’s Murowa Connection

Vere’s journey in the world of diamonds can be traced back to his early experiences with Rio Tinto’s Murowa diamonds, located in Zvishavane. Murowa is now under Rio Zim. This connection laid the foundation for his experience in diamond mining.

Leadership and Industry Experience

Vere is not a newcomer to the realm of mining operations. His track record includes leading several mining operations in Zimbabwe, demonstrating a keen understanding of the complexities involved in this industry. As past President of the Association of Mine Managers of Zimbabwe (AMMZ) and a current council member, Tirivashe led a significant number of large-scale Mine Managers leaving an indelible mark on the Mining industry in Zimbabwe.

Diverse Mineral Commodities Expertise

What sets Vere apart is his diverse expertise across a spectrum of mineral commodities. His experience spans across Asbestos, Diamonds, Nickel, Gold, Cement, and Coal, showcasing a truly exceptional versatility. In his previous role, Vere was the Mine Manager for Kuvimba Mining House’s Energy Cluster division Bindura Nickel Corporation (BNC). BNC is Zimbabwe’s biggest Nickel mine and in 2021 was the world’s 3rd biggest Nickel exporter. Not many can boast such a comprehensive understanding of various minerals, and Tirivashe’s ability to navigate the challenges and intricacies of each speaks volumes about his capabilities.

Mining Zimbabwe wishes him the best in his new role.

Zimbabwe gold buying prices/ gram 1 March 2024

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Zimbabwe gold buying prices/ gram 1 March 2024

Fidelity Gold Refinery (FGR) official gold buying prices/ gram. See the Zimbabwe gold buying prices/ gram today 1 March 2024.

SG 90% AND ABOVE US$62.22/g
SG ABOVE 85% BUT BELOW 90% US$61.56g
SG ABOVE 80% BUT BELOW 85% US$60.90/g
SG ABOVE 75% BUT BELOW 80% US$60.24/g
SAMPLE BELOW 10g BUT ABOVE 5g US$59.26/g

Fire Assay CASH $62.55/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.

Galileo Resources Advances Strategic Acquisition in Zimbabwe

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Galileo Resources Advances Strategic Acquisition in Zimbabwe
  • Secures 80% Stake in Lithium & Gold Projects

Galileo Resources plc, has successfully fulfilled all conditions of the acquisition of an additional 51% shareholding in BC Ventures Limited. The announcement comes as a follow-up to the company’s initial declaration on October 3, 2022.

Galileo, which previously held an option to secure a 51% interest by investing $1.5 million in the exploration and evaluation of the Lithium & Gold Projects by July 21, 2024, has now increased its stake to 80% in BC Ventures Limited. This move positions the company strategically in the ownership of BC Ventures Limited, which holds the Kamativi Lithium Project and two gold licenses known as the Bulawayo Gold Project.

BC Ventures Limited, through its wholly-owned Zimbabwe subsidiary Sinamatella Investments (Private) Limited, has recently submitted applications to Zimbabwean authorities for a three-year renewal of all three exploration licenses, extending the validity to March 12, 2027.

Colin Bird, the Executive Chairman of Galileo Resources, expressed his satisfaction, stating, “I am pleased that we completed all the necessary work to finalize our 51% earn-in, and with our existing 29% shareholding, we now have an 80% beneficial shareholding in BC Ventures Ltd.” Bird highlighted the potential of the projects, particularly praising the Kamativi Lithium/Tin project for its significant promise in the discovery of lithium and/or tin. He also noted positive indications for near-surface and deeper gold discoveries in the Bulawayo project, with preliminary findings suggesting the presence of ultramafic formations that may host nickel.

Bird emphasized the company’s commitment to advancing all projects in Zimbabwe, underlining the high prospectivity for new discoveries in various sought-after metals globally. The executive’s optimistic outlook aligns with Galileo Resources’ dedication to exploring and unlocking the mineral potential in Zimbabwe, contributing to the ongoing global demand for new age metals.

Galileo Resources plc remains poised to play a key role in the exploration and development of Zimbabwe’s rich mineral resources, with the successful acquisition strengthening its foothold in the region. The company’s strategic move aligns with its broader vision of contributing to the global supply chain of critical metals, reaffirming its commitment to sustainable resource development.

Major Setback as ZIMPLATS Delays Refinery refurbishment

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Major Setback as ZIMPLATS Delays Refinery refurbishment

Zimbabwe’s hopes for the establishment of a Platinum Group Metal (PGM) beneficiation plant may be in jeopardy, with the country’s largest PGM producer postponing the refurbishment of the Selous Base Metal Refinery (BMR).

Rudairo Mapuranga

According to Impala Platinum (Implats), which owns Zimplats, the PGM producer will also delay other projects in the country, including the 185MW solar plant, due to softening commodity prices.

Despite posting a 9 per cent increase in 6E production and boosting sales by 10 per cent to 320,196 ounces in the six months to December 2023, softening metal prices have dragged the PGM miner into losses.

In 2021, Zimplats announced a US$1.8 billion expansion plan, the single largest investment commitment into Zimbabwe in years. However, Implats now has to delay some of the projects after falling prices cut group profits by 88% in the December half-year.

“At Zimplats, the implementation of the sulfur-dioxide abatement and smelter expansion project was rationalized to manage cash constraints. The execution of the Selous Base Metal Refinery (BMR) refurbishment was deferred. Further phases of the 185MW solar project have also been postponed.

The sulfur dioxide plant will now only start in 2028. The base metal refinery project, according to Implats, has been ‘deferred outside the five-year planning window.’ A new smelter will be completed at Zimplats in May. After that, the company will slow down spending. ‘Post the new smelter commissioning at Zimplats, plans to slow future growth capital will see the asset revert to free cash flow generation.’

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