Gold production for the period increased to 48,143 ounces from 45,524 ounces for the first half 2014 despite lower prices recorded during the period.

 

Average mineral price recorded during the period was lower at $1 203 per ounce compared to $1 278 recorded in the first half of last year.

 

Metallon Gold, which is owned by South African mining tycoon Mr Mzi Khumalo, boasts of five gold mining operations in Zimbabwe; How Mine, Shamva, Arcturus, Mazowe and Redwing mines.

 

The mining group witnessed an increase in gold sold during the period to 50,370 ounces from 45,524 ounces sold in the previous comparative period.

 

Metallon said net decrease in bank debt was $1,7 million from $21,9m in June 2014 to $20,2m in June this year.

 

"Expected bank debt position by the end of September 2015 is $17,1m, as a result of repayment of loans by discounting treasury bills of $9,2m, as well as increased borrowing of $6 million. Metallon is committed to ensuring that outstanding creditors are paid," said the company in the September corporate statement.

 

Going forward the premier bullion producer will spend close to $295 million by 2019 towards expansion and production ramp up.

 

The company's capital expenditure is to be funded from internal cash flows and local bank facilities and the gold price used by the company in forward looking assumptions is $1 200 per ounce.

 

Metallon Gold expects production to shoot above 130,000 ounces from underground operations helped by the resumption of mining operations at Redwing Mine and the setting up of re-treatment plants at Mazowe mine.

 

Mining operations at Redwing Mine in Penhalonga were suspended due to flooding but de-watering is continuing and the mine is expected back in production by next month. Redwing Mine averages about 30,000 ounces per annum at full capacity.

 

On Shamva Mine Metallon appointed Fraser Alexander Zimbabwe for the construction of the 27-hectare tailings storage facility in April 2015 and mobilisation of staff and equipment commenced in May 2015.

 

"Excavating by the dozer of starter wall area, return water pond, camp site and two access roads to slimes dam and camp site have been completed. Commissioning is expected next month and CAPEX is approximately $4, 4 million," said the mining group.

 

Other investments are also expected on How Mine which is the flagship asset and Arcturus mine which recently received new equipment in order to ramp up production. Investment on How Mine will go towards How Mine's south shaft sinking and capital development.

 

Metallon said the Zimbabwean gold mining industry has operated for over 100 years and there is a well established base of mining skills, expertise and local suppliers.

Source : allafrica.com