Zimplats invests in exploration projects
RESOURCES group Zimplats Holdings Limited has spent a total of US$1,5 million on exploration projects during the quarter to September 30, 2021. According to the platinum mining group, exploration activities included mineral resource evaluation, comprising approximately 8 621 metres of surface diamond drilling over existing projects on the two mining leases.
“Exploration activities increased geological and geotechnical confidence in production schedules,” said Zimplats in a trading update for the quarter.
Production-wise, 1,8 million tonnes of ore were mined during the review period, which was 1 percent above the prior quarter.
However, this was 3 percent below the same quarter in the prior year due to lower productivity as a result of the required ramp-up of teams recommencing production at Ngwarati Mine from July 1, 2021, following the successful rehabilitation of the box-cut highwall.
Quarter on quarter, platinum production went down 7 percent to 65 499 ounces, but rose 1 percent from same quarter in 2020 where 65 069 ounces were recorded.
At 55 895, palladium was flat year on year and 6 percent below previous quarter.
Gold production for the quarter fell 9 percent compared to previous quarter but this was 6 percent ahead of same quarter last year.
The group produced 5 932 ounces of rhodium during the quarter under review which represented a 7 percent decline from previous quarter but 2 percent above comparable period in 2020.
Figures from Zimplats show 6E head grade of 3,45 g/t improved 1 percent from the prior quarter reflecting the benefit of the resumption of production from Ngwarati Mine. According to the group, the concentrator at the Selous Metallurgical Complex was shut for a planned mill reline during the quarter under review.
While ore milled therefore declined by 5 percent to 1 677 tonnes from 1 767 tonnes in the prior quarter, it was stable relative to the September 2020 quarter.
As a result, 6E production in final product of 143 061 ounces decreased by 7 percent from the prior quarter.
Metal in final product volumes in the September 2020 quarter was impacted by the deferral of concentrates smelted to the December 2020 quarter and therefore, volumes for the quarter under review were 1 percent higher.
On financial performance, total operating cash costs were 1 percent higher than the prior quarter mainly due to increased Covid19 spend and insurance costs.
“A total of US$3 million was transferred from operating costs to closing stocks during the quarter, as the Group accumulated ore in anticipation of the commissioning of the third concentrator under construction at Ngezi.
“The combination of lower production volumes and higher operating costs resulted in a 4 percent quarter-on-quarter and a 7 percent year-on-year increase in operating cash costs of US$680 per 6E ounce,” said Zimplats.