Arcturus Mine re-opening hinges on gold prices

ZIMBABWE’s biggest gold producer, Metallon Corporation will re-open Arcturus Mine only if there is a significant improvement in the gold price.

Metallon,a gold mining group owned by South African businessman Mzi Khumalo owns five gold mining assets in Zimbabwe; How Mine , Shamva Mine, Mazowe Mine, Redwing Mine and Acturus Mine.

Arcturus Mine was mothballed last year after consistent losses.

In emailed responses to The Herald Business, Metallon Corporation said: “Operations at Arcturus Mine are currently suspended and the mine is under care and maintenance. However, if there are significant improvements in the gold price, mining operations at Arcturus may recommence.

“Metallon is still considering disposal however and is in discussions with numerous parties. Should there be any further progress, the value would be agreed by all parties involved,” said Metallon.

Arcturus Mine started operating in 1907.

Metallon Corporation said resource re-generation and mine development on other operations remains an on-going exercise and each of the mines has an allocated budget for these activities.

“Metallon is undertaking significant exploration both on-mine (at depth and along strike) and off-mine at satellite deposits. Exploration at Mazowe Mine has been ongoing in 2016 and the group already identified new resources, and deepening of How Mine 16N7 Shaft which commenced last year will target resources at depth and ensure continuity of operations,” said the mining group.

Metallon Corporation said Redwing Mine is being dewatered to access submerged resources and exploration is planned in 2017 at Shamva Hill. All of these projects demonstrate Metallon’s commitment to increasing future production.

Metallon Corporation added that it is in fact one of a few gold mining companies in Zimbabwe that is investing significantly in new machinery and technology.

At Mazowe, Metallon has spent $20 million towards the construction of a state of the art processing plant, one of the largest in the country. The plant is due for commissioning in this quarter.

The mining group said two tailings dams are being built at Shamva and Mazowe to world class standards while across the group, investment has been done to improve underground infrastructure and plant equipment.

“All such capital intensive and expensive investments have been paid for out of cash flows and again demonstrating Metallon’s vision to building a leading Zimbabwean gold mining company which will operate in generations to come.

There are many projects across the group that have been planned for 2017 and the budget is still to be finalised. The new Mazowe Processing plant which will be commissioned in this quarter will significantly increase capacity at the mine by 65,000 tonnes per month.

The mining group said work began last year on the deepening of the 16N7 Shaft at How Mine, a project that will secure future production at How Mine.

At Shamva Mine, the new tailings dam will be commissioned in this quarter.

“We anticipate that Shamva will increase ore throughput to 50 000 tonnes from 33 000 tonnes following significant ongoing investment at the mine.”

Redwing Mine, which reopened in November 2015 after eight years under care and maintenance, is also under further development and will be ramping up production to installed capacity over the coming year.

The mining group has also started focusing on commencing exploration and development at brownfield sites in Tanzania this year.

This is part of Metallon’s long term strategy to become a 500 000 ounce per annum producer in the next five years.