HARARE, May 11 (The Source) – AIM-listed junior miner Vast Resources recorded an eight percent quarterly increase in gold output to 79,6 kilogrammes (2,808 ounces) at its Pickstone-Peerless Gold Mine (PPGM) as production levels reached record levels.
Vast, previously known as African Consolidated Resources (AFCR), owns 50 percent of the Chegutu mine, with the other half being controlled by Grayfox Investments, a consortium of Zimbabwean investors. The mine delivered its first output in August last year.
Ore milled during the three months to March rose 17 percent to 54,237 tonnes with production exceeding 20,000 tonnes in March alone, a first for the mine. Last month, following the end of the quarter, the miner said it produced more than 40kg of gold.
Head grades averaged within a range of 1.9 – 2.1 grammes/tonne during the quarter and are expected to increase in future as the open pits are developed.
During the quarter under review, the company managed to reduce its Zimbabwean bank overdraft from $2 million to approximately $1,2 million.
Vast said it delivered 70,1kg of gold to the Reserve Bank of Zimbabwe during the quarter, while another 15,8kg was delivered at the end of April.
“The mining currently underway represents only the first phase of production at PPGM, and we are busy planning and laying the foundations for the subsequent phases of development to ensure PPGM generates long-term sustainable cash flow for the group,” said chief executive Roy Pritchford in company update.
The miner is considering development of a satellite open pit mine at nearby Giant Gold Mine which has an inferred resource of 14,175kg of gold.