Pickstone Peerless project to succeed in Zim

Published: 05 December 2013

Pickstone Peerless gold mine project in Zimbabwe is estimated to have a life of more than 10 years with a peak production rate in excess of 100,000 ounces per annum, according to a pre-feasibility study (PFS) published by African Consolidated Resources.

According to the study, the mine will have an average all-in sustaining cost (AISC) of less than $700 an ounce.

"As Zimbabwe charters its future direction towards reintegration into the global community, the company is positioned to be a major force in the local gold sector which may lead to further consolidation opportunities in the country.

"Whilst recognising the future opportunities, our focus and energy will foremost be on building Zimbabwe's largest ever open pit gold mine and rewarding the company's shareholders," pledged Mr Craig Michael Hutton, the chief executive officer of African Consolidated Resources.

The company also revealed that an independent mineral reserve statement is near completion and should be published shortly. On the subject of project finance, the company has agreed an indicative term sheet with a major African bank for the development of the project.

The facility is subject to the usual due diligence and also on African Consolidated securing equity for the initial plant construction.

If the projected production output is achieved, then Zimbabwe would expect a rise in the export revenue from the gold mining sector next year.

However, the only issue that may be of concern is the continued depressed gold price. Therefore this projected rise in gold output should be an incentive and advantageous point at which investors can venture into mineral beneficiation.

- Proactiveinvestors - bh24