Mutapa Gold Resources has allocated a capital budget exceeding US$12 million for exploration in 2026 alone, as part of an aggressive drive to extend the life of mine (LoM) for each of its operating assets to a minimum of 10 years, the Deputy Chief Investment Officer of the Mutapa Investment Fund has revealed.
By Rudairo Mapuranga
Speaking during a visit by the Parliamentary Public Accounts Committee to the Freda Rebecca Gold Mine on Monday, Ernest Denhere outlined a sweeping geological expansion programme aimed at unlocking new resources, de-risking future production, and converting Zimbabwe’s vast mineral endowment into bankable reserves.
“We are expanding geological programmes to unlock new resources, extend the life of our assets, and de-risk future production,” Denhere said. “For 2026, a capital budget in excess of $12 million has been allocated for exploration across Mutapa Gold Resources’ entities, aiming to achieve a life of mine of 10 years for each operation.”
Denhere provided a candid assessment of Mutapa Gold’s current reserve positions, revealing significant variance across its flagship mines:
Operation | Current Life of Mine | Target / Notes
Freda Rebecca | 4 years | Immediate exploration priority
Jena Mines | 6 years | Expansion to 100 kgs/month planned
Shamva Mine | 15 years | Conditional on scaling production to Freda’s level
The figures underscore the urgency of the exploration drive. Freda Rebecca, one of Zimbabwe’s most storied gold producers, has only four years of remaining reserves at current extraction rates, making the US$12 million exploration push critical to its survival.
Mutapa Gold Resources currently produces an average of 300 kilograms of gold per month across its portfolio. Denhere confirmed that the company is targeting a 90% increase to 570 kgs per month through a combination of exploration, operational optimisation, and capital investment.
Key production targets include:
- Shamva Mine: Current production of 65 kgs per month will rise to 200 kgs per month, more than tripling output, provided it scales up to Freda Rebecca’s operational level.
- Jena Mines: Will increase to 100 kgs per month, up from its current baseline.
- Freda Rebecca: Expected to benefit directly from the exploration programme to extend its LoM beyond four years, stabilising production.
The $250 million life-of-mine expansion plan
Denhere disclosed that Mutapa Gold Resources requires an estimated US$250 million for full life-of-mine expansion across all assets. To kickstart this funding, the company is currently working on a local debt syndication of US$75 million.
“In line with NDS2’s emphasis on resource mobilisation and capital investment-led growth, data-driven exploration and strategic partnerships will convert Zimbabwe’s mineral endowment into bankable reserves, crowding in capital, stimulating regional development, and supporting long-term economic stability,” he said.
The US$12 million exploration budget represents a significant shift from reactive mining to proactive geological investment. By targeting a 10-year LoM for each operation, Mutapa Gold is seeking to:
- De-risk future production through systematic resource definition
- Attract additional capital by demonstrating reserve longevity
- Align with the National Development Strategy 2 (NDS2) agenda of capital investment-led growth
- Convert mineral endowment from speculative resources to bankable reserves
The presence of the Parliamentary Public Accounts Committee at Freda Rebecca signals heightened legislative interest in the performance of state-owned and sovereign wealth-backed entities. Denhere’s detailed disclosure of capital budgets, reserve lives, and production targets provides the committee with clear benchmarks against which Mutapa Gold’s performance can be measured.
