Vast Resources complete regulatory requirements for Chegutu mine, sees slight Capex overrun

Vast Resources complete regulatory requirements for Chegutu mine, sees slight Capex overrun

BULAWAYO, May 5 (The Source) – AIM listed resource and development Company Vast Resources says it has completed all regulatory requirements for its Pickstone-Peerless Gold Mine near Chegutu, while development of the mine was now at an advanced stage with hot commissioning and first production set for August 2015.

The London-based miner said in an update released on Tuesday that it has acquired the mining permit, environmental approval and siting and works plan for the project.

It also added capital expenditure for the project has slightly increased from the $4 million to acquire slightly enhanced equipment to facilitate and reduce cost of the next phase expansion stage.

It did not specify the overrun.

“The increased working capital requirement is planned to be provided by facilities from local financial institutions which have indicated interest in the project. These facilities are now in the process of negotiation,” said Vast Resources.

The company said the mining contractor was now on site establishing required facilities.

“Pit preparation will be undertaken during May 2015 and an ore stock-pile (one month) will be created in June 2015, ready for hot commissioning and first production in August 2015. Annualised gold production of 10,000-12,000oz Au is expected from the initial mining rate of 10,000 tonnes per month. Grade control drilling has commenced”

Vast Resources added that the existing carbon-in-pulp (CIP) / carbon-in-leach (CIL) facilities and the civil engineering for the new facilities were 70 percent complete.

“The new mill and crusher ex-China has arrived in Durban, South Africa, and is en-route by road to the mine. Equipment being sourced in South Africa is in construction and will be available when required for installation.”

It added equipment being refurbished or fabricated in Zimbabwe was well in hand while ancillary facilities such as the laboratory have been commissioned and were operational.
The majority of the required senior and middle management personnel were already on site.

The London-based miner owns 50 percent of the 584ha Pickstone-Peerless mine, after disposing the other half to Grayfox Investments, a Zimbabwean incorporated company owned by a local consortium, which paid $4 million for the equity and formed a new joint venture, Dallaglio Investments.