Pickstone Peerless Mine, operated by Padenga’s gold business, Dallaglio Investment, is set to invest US$15 million to increase its gold production by 26%.
By Ryan Chigoche
This substantial capital expenditure will fund exploration and expansion projects, marking a pivotal move as the mine refines its production strategy and infrastructure in response to surging gold prices.
This investment aligns with the positive outlook from the Chamber of Mines, which projects a 7% increase in mineral output across Zimbabwe in the coming year. Specifically, gold production is expected to rise to 42 tons in 2025, up from 38.5 tons in 2024.
This growth will be driven by the expansion of existing operations like Pickstone Peerless, as well as new projects in the sector.
The US$15 million investment is also part of the mine’s strategic shift from open-pit mining to underground operations. This transition was bolstered by an US$18 million underground mining project commissioned in August 2024, expected to continue until mid-2025.
The underground mining operations are expected to enhance ore grades significantly, improving the mine’s production efficiency.
With underground ore grades ranging between 3 to 5 grams per tonne, compared to the open-pit grades of 1.8 grams per tonne, this shift is anticipated to lead to higher-quality production, taking advantage of rising gold prices.
In addition to the underground transition, Pickstone Peerless is making significant investments in infrastructure to improve gold recovery.
The mine’s current recovery rate stands at 70%, but the addition of three large Carbon-in-Leach (CIL) tanks, alongside the installation of a fourth ball mill, is expected to increase recovery rates, boosting overall output.
These upgrades are vital for capitalizing on high gold prices, ensuring that the mine maximizes the value extracted from its ore.
Pickstone Peerless has already contributed significantly to Zimbabwe’s gold output, producing 750 kilograms in 2024.
Combined with production from Eureka Mine in Guruve, the two mines currently produce 210 kilograms per month. The mines are on track to increase this to 230 kilograms in 2025 and 250 kilograms per month by 2026.
This growth trajectory is in line with the broader positive outlook for Zimbabwe’s gold industry, fueled in part by bullish gold prices, which are expected to sustain demand and profitability.
Meanwhile, gold revenues are projected to exceed US$3 billion in 2025, up from US$2.5 billion in 2024. Furthermore, the average capacity utilization for the gold sector is set to increase to 96% in 2025, from 95% in 2024.
The mine’s ongoing investments in efficiency, recovery systems, and higher ore grades from underground operations are perfectly positioned to capitalize on surging gold prices.
This development not only strengthens Pickstone Peerless’ role within Zimbabwe’s mining sector but also signals the broader industry’s potential for continued growth, driven by favorable market conditions and strategic investments.
With rising gold prices and increasing production efficiency, Pickstone Peerless stands as a key player in Zimbabwe’s mining sector, poised to thrive amidst global gold demand and contribute to the country’s growing gold revenue.
