Metallon plans $294mln capex on Zimbabwe gold mines, targets 550,000oz output by 2019

Metallon plans $294mln capex on Zimbabwe gold mines, targets 550,000oz output by 2019

HARARE, September 23 (The Source) – Zimbabwe’s largest gold producer, Metallon Corporation, plans to invest more than $290 million in capex over the next four years which will see a three-fold increase in output to 550,000 ounces annually.

The low cost gold miner owns How Mine, Shamva, Mazowe, Arcturus mines while Redwing in the east of the country is due to resume production in October after dewatering.

Redwing, which had been placed under care and maintenance since 2008, is this year upon reopening expected to yield 3,400 ounces at $932/oz after the company invested close to $1,5 million in plant and underground equipment. Production is expected to increase to 111,000oz per annum by 2019 at a capital cost of $73 million.

In its latest corporate presentation, the company said it had budgeted $294 million for its growth strategy to increase gold production at all its operations to become a mid-tier producer.

In 2014 the miner achieved production of 99,000 ounces and has a revised guidance of around 120,000 ounce for 2015.

A $69 million spend at the company’s flagship How Mine is expected to increase annual output from the 55,000oz achieved in 2014 to 100,000oz by 2019.

The company also intends to expand capacity at its Shamva mine to 100,000oz per annum by 2019 from the current 24,000oz by upgrading its shaft, expanding its sands retreatment plant at a capital cost of $54 million.

Plant civil works for the Mazowe sand retreatment plant are already 75 percent complete with commissioning set for October. The project is expected to cost $52 million and expand production to 140,000 ounces from the current output of 11,380 ounces.

Arcturus is set to receive a shaft upgrade as well as development and exploration spend to the tune of $46 million to take production from the current 8,300 ounces to 100,000 ounces per annum.