Mazowe New Processing plant – north view
GOLD production at Metallon Corporation increased by nine percent to 22 565 ounces during the second quarter of the year from 20 673 ounces achieved the previous quarter due to a robust performance at How Mine.
The country’s largest gold producer said power interruptions continued to affect operations during the period under review.
It said it lost 12 hours of production which equates to approximately 1 700 ounces compared to 4 275 ounces in Q1.
Metallon said it was working on possible solutions for supplementing power supply.
Commenting on the results, Metallon Corporation chief executive officer Ken Mekani said the group had delivered a positive performance.
“The new processing plant at Mazowe is 80 percent constructed with all key equipment on site, and we have confirmation from our contractors that the plant will be commissioned in Q4 2016,” he said.
Mekani added that the appointment of contract miners at Shamva Mine and ramp up at Redwing Mine would improve production in the second half of the year.
“We look forward to the continued expansion across the group and reaffirm our production target of 120 000 ounces in 2016. We are encouraged that the Reserve Bank of Zimbabwe is prioritising payments within the mining sector,” he said.
Metallon Corporation has producing assets in Zimbabwe and exploration assets in Tanzania and the Democratic Republic of Congo.
Metallon owns and operates four gold mining operations and has gold resource of over 8,3Moz.
How Mine, near Bulawayo, is its flagship operation.
It produces over 55 percent of production.
Shamva and Mazowe Mines, both located near Harare, each produce approximately 20 percen and Redwing Mine, near Mutare, re-opened in November 2015 and is currently ramping up production.
During the same period development metres drilled were 3,871 metres, a 26,5 percent increase on 3,059 metres drilled in Q1.
Metallon is currently investing significantly in Zimbabwe with the deepening of the shaft at How Mine, the refurbishment of the processing plant at Shamva Mine, the expansion at Redwing Mine and a targeted exploration programme across the group.
This large capital expenditure programme over the next few years will considerably increase the company’s production and generate future revenue.
Gold production in 2015 was approximately 97 000 ounces and the budget for 2016 is 120 000 ounces.
The company is focused on increasing gold production significantly by improving current mining operations and through ambitious expansion across all operations, with a target of 500 000 ounce per annum in the next five years.
Q2 2016 Production Highlights:
| Mine | April production (oz) | May production (oz) | June production (oz) | Q2 2016 production (oz) | Q1 2016 production (oz) |
| How | 3,578 | 4,717 | 4,436 | 12,731 | 9,540 |
| Shamva | 1,694 | 1,728 | 1,507 | 4,928 | 5,063 |
| Mazowe | 977 | 826 | 736 | 2,540 | 2,902 |
| Arcturus | 0 | 0 | 0 | 0 | 788 |
| Redwing | 873 | 740 | 753 | 2,366 | 2,379 |
| TOTAL | 7,122 | 8,011 | 7,432 | 22,565 | 20,673 |
| Group C1 costs ($/oz) | 770 | 729 | 749 | 764 | 884 |
| Group C3 ($/oz) | 1,069 | 967 | 915 | 983 | 962 |
| Group AISC ($/oz) | 1,066 | 954 | 908 | 971 | 1,156 |
Mazowe New Processing plant – flotation shed
Group Expansion Update
How Mine
How Mine has commenced the deepening of the 16N7 Shaft in order to increase ore supply. The shaft deepening from 28L to 34L is to access ore below 28 Level which will increase future production. Commissioning of the deepened shaft is expected in 2018.
Shamva Mine
The new Tailing Storage Facilities (‘TSF’) at Shamva Mine will be commissioned in Q4 2015. Plans are scheduled to refurbish the Processing Plant at Shamva Mine to 70,000 tonnes per month capacity, which would increase production in 2017. In Q2 2016 Management appointed contract miners at Shamva Mine. Contract miners commenced on 1st August 2016 and management are confident that positive results will be generated in Q3 2016. Dependant on performance, management may consider use of contract miners across the Group.
Mazowe Mine
Construction on the new Processing Plant and TSF at Mazowe is currently at 80 percent and commissioning is expected in Q4 2016. The new Mazowe Processing Plant will increase capacity at the mine to 70,000 tonnes per month.
Redwing Mine
Redwing Mine continues to increase production following the resumption of operations in November 2015. Production is expected to increase to 22,000 tonnes per month by Q4 2016. Plans are also underway to increase production to 50,000 tonnes per month in 2017.
Group Exploration
Exploration drilling has commenced at Mazowe Mine and drill results will be published in Q3 2016. Metallon’s next MRMR Group statement as at 30 June 2016 will available in Q3 2016 and will include additional resources at Redwing Mine following the resumption of mining. In 2016, Metallon will be focused upgrading the Inferred section of its resource into the Measured and Indicated category. This exploration programme across Metallon’s mines is positioning the Company for increased production over the next five years.
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