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April 2016
MODERN MINING
11
MINING News
UK-based Metallon Corp, which owns five
underground goldmines in Zimbabwe, has
reported a total gold production of 96 530
ounces for FY 2015, 2,4 % lower than the
figure for 2014. The group says that gold
production was lower than expected
due to equipment breakdowns at four
of its mines (How, Shamva, Mazowe and
Arcturus), increased power interruptions
and a delay in commissioning its Mazowe
sands retreatment project as a result of
unforeseen equipment delays.
C1 and C3 costs for 2015 were US$818
and US$1 017 per ounce respectively.
Compared to 2014, C1 costs were 5,4 %
higher due to lower production and C3
costs were 9,8 % higher as a result of
spending on new projects and replace-
ment capex.
Metallon says that in 2016 its focus
will be on completing the Mazowe sands
retreatment plant and the Mazowe and
Shamva tailings facilities in Q2 2016 and
on resource exploration across the group
with a budget of US$1,6 million commit-
ted to upgrading resources from inferred
to measured and indicated. The majority
of the planned exploration will be under-
ground and near surface at Mazowe
mine and at surface at Shamva Hill. At
Mazowe – and depending on the results
of the exploration programme – the sands
retreatment plant will be upgraded to
process ore from both near surface and
underground from 2018.
Redwingmine has successfully resumed
operations and produced 814 ounces in
2015. Ramp up will continue over the next
six months to bring themine to full produc-
tion. At steady state Redwing will deliver
approximately 1 600 ounces per month.
Dewatering will continue to open up more
reserves in the lower levels of the mine.
According to Metallon, the reopening
of Redwing – which discontinued opera-
tions in 2008 – will bring many major
social and economic benefits to the local
region and the country. Employment is
one of these benefits, with the mine hav-
ing 484 employees at opening. This figure
will increase to over 700 once it reaches
installed capacity in H2 2016.
Construction of the Mazowe sands
retreatment project is almost complete
and commissioning is expected in Q2
2016. The new tailings facilities at both
Mazowe and Shamva are progressing well
and these should also be ready for use in
Q2 2016.
Comments Ken Mekani, Metallon’s CEO:
“2015 was an exciting and promising year
Metallon’s production marginally down in 2015
for Metallon and the management team
have been focused on making significant
improvements to the business. Despite
gold production for 2015 being margin-
ally below that of 2014, we believe that
advances made during the year will ensure
Metallon is well positioned for future pro-
duction growth. This is demonstrated
by record monthly gold production in
December 2015. Notably, Metallon spent
over US$15 million on capital expenditure
over the last 12 months and will also have
repaid US$8 million of net debt by the end
of Q1 2016. This establishes our commit-
ment to reducing our net debt position and
reinvesting in the business. The reopening
of Redwing mine in Q4 2015 has been a
tremendous achievement and we look for-
ward to increased production in 2016.”
Metallon’s Redwing mine – one of Zimbabwe’s historic mines – is located 20 km north-east of Mutare. It was
reopened towards the end of last year (photo: Metallon).
Tango receives offer for Oena diamond mine
Tango Mining, a company listed on the TSX
Venture Exchange, reports it has received a
binding offer from Bothma Diamante CC, an
unrelated third party company registered in
South Africa, to acquire African Star Minerals
(Pty) Limited , which owns 100 % of the
Oena mine (in which Tango has a 51 % inter-
est) for US$3 million (payable in traches).
Bothma is well known in the Northern
Cape and Free State and has worked as
contractor on various projects for the min-
ing of alluvial diamonds, the processing and
manufacture of river sands and kimberlite
projects.
The Oena project consists of an 8 800‑ha
mining right and corresponding infra-
structure and all associated processing
equipment. It is located along the Orange
River in a well-established alluvial diamond
mining province known to produce high
quality and large sized diamonds.
In connection with the agreement with
Bothma for the purchase of African Star,
Tango has entered into a binding term
sheet and sale and acquisition agreement –
contracting (Stage 1 Agreement) whereby
Bothma will continue the alluvial diamond
bulk-sampling programme at the Oena
project. Following that, it will enter into a
Stage 2 agreement whereby Bothma will
complete the acquisition of African Star.
Tango will receive a minimum of 15 % of the
proceeds of all diamond sales “for a term
of the longer of 12 months and/or until a
Section 11 approval is obtained”.