Published: 28 January 2014

The Zimbabwe Mining Development Corporation is seeking a strategic partner to help raise $15 million for the resuscitation of its Jena gold mines in the Midlands region.

According to a project document seen by BH24, shareholding will be negotiable according to the contributions of each party.

Of the funding required, $10 million is for working capital while $5 million is for recapitalisation.

"The project will involve surface exploration and development to increase ore reserve base and a shaft re-deepening programme to access depth extension of ore bodies. It will also seek to improve water and electricity supplies to the mine as well as the mechanisation of underground production," read part of the document.

The recapitalisation is meant to increase capacity and ultimately output at the mine. According to statistics from the Chamber of Mines, 309 kg of gold were produced at Jena last year.

Jena Mine is the biggest gold producer in the province and employs 632 people at full capacity.

At least 546 000 tonnes at 4,26g per tonne of proven ore reserves are believed to be locked up underground.

The report said geological and feasibility studies have already been done and the implementation of the project is expected to commence as soon as funding is available.
- bh24

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