Bilboes investigates mine feasibility

PRIVATE gold miner, Bilboes Gold Limited, is investigating feasibility of a mine with capacity to produce up to 200 000 ounces of bullion per annum, major shareholder Bakersteel Resource Trust has said.

Bilboes, which missed its target for an initial public offering on the Zimbabwe Stock Exchange in 2016 for yet unexplained reasons, owns previously oxide producing mines in Matabeleland North Province.

The oxide mines have been restarted and are currently producing at the rate of approximately 10 000 ounces per annum. Bilboes wanted to develop Isabella, Mcays and Bubi mines. The IPO therefore targeted to raise an amount of $7,4 million.

Bilboes Gold Limited has a joint ore resources committee (JORC) compliant indicated mineral resources of 29,3 million tonnes grading 2,12g/t in the underlying sulphide mineralisation as well as inferred mineral resources of 30 million tonnes grading 2,03g/t.

Bakersteel said Bilboes Gold Limited contained gold in the combined indicated and inferred sulphide resources totals 3 964 000 oz of gold. The mineralisation is open along strike and at depth with good potential for the mineral resources to be increased.

“A feasibility study is underway to investigate a mine producing 100 000 to 200 000 ounces per annum, initially from open pit,” Bakersteel said.

A presentation to investors in 2015 indicated that Bilboes needed $2,5 million to recapitalise oxide operations, $2,7 million for sulphide pre-feasibility and $2,4 million for sulphide definitive feasibility.

A total of $4,3 million of the funding was required over a period of six months, $1,7 million over four months and the balance of $1,6 million for a period of 18 months, the gold mining entity said.

Bilboes said that it had “Intention to IPO (initial public offering) from 2016 in order to raise funds for mine development at Isabella-McCays-Bubi (Matabeleland North Province) sulphide complex”.

The group had obtained $7 million debt facility in 2012 from Industrial Development Corporation of South Africa to recapitalise the mines and $16 million from private placements in 2011 and 2013, for the sulphide project definitive feasibility studies. espectively.