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Business Reporter
Metallon Corporation’s gold production for the first quarter of 2016 tumbled 15 percent to 20 672 ounces from 24 386 ounces of the comparative period last year due to increased power interruptions experienced during the period.

The gold mining group lost 324 hours of production in the quarter which equates to approximately 4 275 ounces. Metallon lost 167 hours of production in the first quarter of 2015 due to power interruptions as well.

In a statement yesterday, Metallon said everything is progressing well with regards to possible solutions for supplementing grid power supply.

Breakdowns at the Primary Mill and North Shaft Hoist at How Mine during the first two months of the year also affected production while breakdown of the Symons Crusher at Mazowe Mine in March and suspension of operations at Arcturus Mine in March 2016 also had similar negative effects to the group’s production.

“Tonnage throughput is stabilising and the focus is on achieving target feed grade to make up for lost ounces. Ore generation challenges at Shamva Mine due to equipment breakdown underground also affected production but equipment has been replaced and management is working to ensure maximum capacity utilisation of the Shamva Mine process plant.”

The group C1 costs and C3 costs for the first quarter of 2016 were $884 and $1,081 per ounce respectively. The mining group said costs were higher than expected during the period due to production shortfalls and increased expenditure.

As production and cost efficiencies improve throughout the year with new equipment and increased capacity, Metallon expects these costs to reduce further.

In 2016, Metallon will be focusing on upgrading and refurbishing mining equipment and processing plants across the Group operations.

This will reduce breakdowns, increase efficiencies and lead to lower costs. Metallon will also be upgrading the Inferred section of the 9,6 million ounce resource into the measured and indicated category.

Metallon said exploration has commenced at Mazowe Mine and will continue over the next six months. This exploration and investment across Metallon’s mines is positioning the group for increased production over the next five years.

The gold mining group said Redwing Mine continues to increase production since the resumption of operations in November 2015. In March 2016, gold production reached over 1 000 ounces.

“Efforts are now focused on ramping up production to the plant capacity of 22,000 tonnes per month by June 2016. At this capacity, Redwing Mine will employ over 700 employees,” said Metallon Corp.

Construction on the new Mazowe Processing Plant and the new Tailing Facilities at both Mazowe and Shamva Mine are progressing well with commissioning is expected in the third quarter of 2016.

“There have been some challenges in production during the first quarter due to equipment breakdowns at How and Shamva Mines and significant power interruptions. This year we will be investing in our assets by refurbishing and upgrading operations and expanding capacity which will deliver economies of scale and significantly lower costs.

“This investment and the exploration taking place will put Metallon on course to increased production over the next five years,” said Metallon Corporation chief executive Ken Mekani.

“Metallon is committed to mining in Zimbabwe and we are pleased with the tremendous progress at Redwing Mine since the resumption of operations in November 2015,” he said.

Mr Mekani said all mining operations made a profit in March 2016 and Metallon now looks towards the future with a production target of 120,000 ounces in 2016.

The gold mining group owned by South African mining magnate Mr Mzi Khumalo boasts of five gold mining operations in Zimbabwe; How Mine, Shamva, Acturas, Mazowe and Redwing mines.