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The new team at RioZim tasked with turning around the company. Chairman Mr Lovemore Chiota (seated), new CEO Mr Noah Matimba (right) and CFO Mr Bheki Nkomo (left)

RioZim expects cash flows from the Cam & Motor mine project to stabilise the group’s cash position while at the same time unlocking value for the group’s gold portfolio.

Chairman Mr Lovemore Chiota last week said the project was a low hanging fruit and would help enable the business to raise funding from there.

“It’s cheaper to mine Cam & Motor and fund operations from there. We also anticipate that once it gets on board, it can lower the production costs for gold within the group. So in essence cash flows from this project will stabilise the group’s cash position and allow for operational improvements in a number of areas within the group.”

He was speaking after shareholders unanimously approved the $10 million rights offer to fund the mine. The rights issue is being underwritten by GEM Holdings. GEM is also said to have provided $700 000 to start up the project.

The Cam and Motor Gold Mine Project is 100 percent owned by RioZim Limited and is situated in Mashonaland West in Kadoma.

It used to be the largest producer of gold in Zimbabwe before it was closed in 1968.

Prior to it being shut, an estimated 5 291 100 ounces of gold was produced and cut-off grade at that time was approximately 8g/tonne.

Mr Chiota said extensive geological test works have been carried out and have indicated that the mine has significant amounts of gold.

Chief executive Mr Noah Matimba said the group was targeting an output of 100kg/month and together with Renco hoped to make the gold cluster one of the largest producers in the country.

Mr Matimba said RioZim intends to mine the resource delineated using open cast mining for the first five years to a depth of 100m.

This will be followed by underground mining starting with the Motor Lode because it has a higher value deposit and less people would require resettlement

The group has already placed an order for a 1 500 tonnes per day plant which at full capacity would be expected to produce more than 3 000 ounces of gold per month.

To reduce capital costs, the group will use contract mining companies to drill, blast and haul the ore to the plant and the waste rock to the waste dump and in the first year, processing will comprise crushing, milling and cyanide leaching of the oxide ore.

From year two, mineral processing will include flotation, roasting of the sulphide concentrate and cyanide leaching of the roasted concentrate.

Mr Matimba said the mine has an estimated six million tonnes of gold resource.

“Based on current projections the lifespan is at 10 years but then life is determined by the rate at which you mine.” — Wires.