Metallon Gold eyes rebound

Metallon Gold eyes rebound

Business Reporter
Zimbabwe largest gold mining group, Metallon Gold Corporation will commission its Mazowe Sands Retreatment plant in July this year as the gold miner eyes a rebound from the slump in annual production last year. Metallon’s annual gold production in 2015 was 2,4 percent down to 96,530 ounces from 98,863 ounces. The slump in gold production has, however, pushed the mining group to bring all new projects into line in 2016 to orchestrate a rebound.

Metallon Gold Corporation chief executive Ken Mekani told The Herald Business yesterday that the gold mining group is looking at commissioning new projects this year to bounce back from the decline in production of 2015.

“Our focus in 2016 will be on the commissioning of Metallon’s Mazowe Sands Retreatment plant in July and Shamva Tailings Facilities. “We have also set aside a budget meant to cater for our exploration activities as we look at increasing our resources base,” said Mr Mekani.

Metallon’s exploration programme is expected to upgrade its 9,6 Moz resource into the Measured and Indicated categories, ahead of increased production. The group in 2016 will undergo a resource exploration programme with a budget of $1,6 million committed to upgrade resources.

Metallon last year spent over $15 million on capital expenditure and expects to repay $8 million of its net debt by the end of first quarter 2016. “All these initiatives have been put in place to make sure that we bounce back from the slump in production in 2015. Our target for 2016 is to surpass our 2015 production and we believe these initiatives have capacity to get us where we want to be.

“Redwing Mine successfully resumed operations last year and produced 814 ounces. The mine has been quite encouraging and we will continue to ramp up production as de-watering of some sections continue to open up more reserves,” said Mr Mekani.

He said Metallon has compiled its financial budget for 2016 but is still awaiting approval from the board. Metallon Gold corporate affairs executive Ambassador Zenzo Nsimbi recently told The Herald Business that exploration work is ongoing at the Matabeleland based Motapa Mine to find the most suitable method of processing refractory ores with minimum effects on the environment.

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