TSX-listed Pambili eyes Zim gold assets

PAMBILI Natural Resources Corporation has signed a 12-month agreement with Long Strike Investments (Private) Limited to acquire gold claims in Gwanda, Matabeleland South Province.

Under the Option Agreement, Pambili the Toronto Stock Exchange-listed entity intends to acquire 21 gold assets in the Matabeleland region that are owned by Long Strike Investments.

Gold is Zimbabwe’s single export expected to generate US$4 billion annually from next year, underpinned by new investments in the gold sub-sector, re-opening of closed mines as well as expansion projects.

Some of the gold mines reopened in line with the Government’s thrust to ramp up bullion production include Eureka Gold Mine in Guruve, Mashonaland Central Province, Pickstone Peerless, which is undergoing redevelopment and expansion in Chegutu, Mashonaland West.

Others such as Shamva Gold Mine, a subsidiary of State-owned Kuvimba Mining House (KMH), are working on various initiatives to ramp up production

Recently, KMH announced that it was seeking US$150 million to set up processing facilities and transform Shamva into a world-class resource.

Currently, Zimbabwe is generating about US$3 billion annually from gold exports.

Last year, Zimbabwe produced 30,1 tonnes of the yellow metal against 35,3 tonnes delivered in 2022.

The Government is targeting 35 tonnes this year and according to Fidelity Gold Refinery, Zimbabwe’s exclusive buyer of the yellow metal, in the first 10 months of 2024 a total of 28,2 tonnes were produced compared to 24,6 tonnes in the corresponding period last year.

In a statement, the Canadian-based mining group, Pambili, which also owns Golden Valley Mine in Bulawayo, said it was excited to enter into an option agreement for the acquisition of the 21 assets.

“Under the terms of the Option Agreement, Pambili has the right to acquire 21 gold claims, which cover 173 hectares and include the previously producing London Wall and Jessie mines.

“In addition, Long Strike has applied for contiguous extensions to the claims, totaling an additional 547,8ha.

“Once granted, these extensions are included in the option,” it said.

During the term of the Option Agreement, Pambili will conduct extensive due diligence and exploration of the claims, and should the mining group exercise the Option, the total acquisition cost of the mines and claims will be US$1 million.The above amount would be satisfied through a combination of cash and Pambili shares.

“The subsequent share purchase agreement will be subject to approval of the Toronto Venture Exchange, and any Pambili shares issued to complete the potential acquisition will be subject to statutory four-month-and-one-day hold,” said Pambili.

A “Right to Mine” agreement, signed as part of the Option Agreement, allows Pambili to commence gold production at London Wall Mine, initially by processing tailings and sands, before moving into underground mining operations. Pambili expects to bring at least one of the acquired mines back into production within the terms of the Option Agreement.

The mining group’s chief executive officer Mr Jon Harris said: “The opportunity is a major step forward for Pambili. We are excited to establish a second mining hub with the potential to deliver on Pambili’s target of becoming a significant gold producer in Zimbabwe.

“The option to acquire the London Wall group of mines provides Pambili with a potentially significant source of near-term cashflow, and also provides time to further evaluate the claims and mines ahead of a possible exercise of the Option.

“Although the historical data has yet to be independently verified, the reported figures corroborate previous production records, and we are excited to have this opportunity to confirm the potential of the project.”

He said the immediate goal would be to rehabilitate the static leach tanks at London Wall and begin re-processing the gold tailings to generate revenue.

“A simultaneous evaluation of the underground operations should define the scope and related cost of bringing the East Shaft back into production.

“Given that the shaft was last operated less than two years ago, we believe it should still be in good condition.

“A site near the East Shaft will be prepared for installation of a 20-tonne-per day crushing and milling plant that has already been purchased by Long Strike,” said Mr Harris.
-herald