Metallon eyes listing on ZSE

Published: 28 May 2014

Metallon Gold Zimbabwe is eyeing a potential listing on the Zimbabwe Stock Exchange as part of efforts to comply with the country's indigenisation laws.

In a report, the group said it was liaising with Government regarding the indigenisation policy considering that it is no longer a "one size fits all" policy.

According to the country's empowerment laws, foreign-owned companies are required to turnover at least 51 percent of their shareholdings to indigenous Zimbabweans. New business are also required to comply with the law.

Metallon Gold was founded by South African mining magnate Mr Mzi Khumalo and has five gold mining operations in Zimbabwe; How Mine, Shamva, Arcturus, Mazowe and Redwing mines.

The company is hopeful that the indigenisation process will be completed this year. The Zimbabwe Stock Exchange last had listing about two year ago.

In terms of production, Metallon Gold Zimbabwe is expecting a 20 percent gold production increase in 2014 after re-opening some of the mines that had been closed during the hyperinflation era.

The mining group expects to reach 100 000 ounces of gold in 2014 rising from 81 960 ounces last year.

In a statement the mining group said expansion plans are underway for the company to become a mid-tier producer in the next five years.

"Mines were placed on care and maintenance, with some mines flooded due to unavailability of reliable electricity," Metallon said in a statement.

The company said production is ramping up and they are expecting to come back to the capacity of 190 000 ounces by 2017.

Of the mines that make up the group, How Mine which is the most productive recorded a 32 percent increase to about 53 200 ounces recorded in the first quarter of 2014 from 40 281 ounces recorded in 2013.

How Mine production averages about 5 grammes per tonne.

Shamva gold mine recorded a 70 percent increase in production to about 34 300 ounces in the period under review from 20 113 ounces recorded in 2013.

Average mined grade is 3 grammes per tonne. Mazowe mine recorded a 100 percent production increase to 20 900 ounces from 10 438 ounces recorded last year

Average mined grade was at 5 grammes per tonne. Production ramp up has commenced at Arcturus Mine with underground mining operations already underway.

"Ore at Arcturus is processed through conventional crushing, milling, gravity recovery and a combination of carbon-in-solution and carbon in pulp processes. There is forecast production of approximately 12 000 ounces in 2014. Average mined grade of 4,2 grammes per tonne," Metallon said.

Redwing Mine is currently being de-watered with exploration and development in place to bring the mine back to capacity of 30 000 ounces per annum.

Combined underground and sand re-treatment operation is being done with de-watering of the mine to be completed by the fourth quarter of 2014.
- The Herald