Local company, Canadian firm in mining venture

LOCAL construction and mining group, Nyamatsatse, is set to partner with Canadian firm New Dawn Mining Corporation to increase mineral production, including gold, from its mines in Shurugwi, Midlands Province.

New Dawn Mining Corporation, is listed on Canada’s Toronto Stock Exchange involved in the exploration, development, extraction, processing and reclamation of precious metal deposits in many countries including Zimbabwe.

Its subsidiaries include former Zimbabwe Stock Exchange-listed Falcon Gold Zimbabwe which owns the Golden Quarry Mine in Shurugwi.

A well-placed source said through the multi-million-dollar partnership, Nyamatsatse will acquire a 50 percent stake in mining operations taking place at Camperdown Mine, Santoy Mine and Wanderer Mine.

Negotiations between the two companies reportedly commenced in April this year.

The identified mining sites have the potential to significantly contribute to national gold output if adequate funding is invested towards full mining processes including extraction and exploration.

Geological studies at the gold-rich Camperdown Mine revealed satisfactory grammage per tonne.

The yet-to-be fully explored Santoy Project sits on more than 500-hectare block of base metal claims with potential to produce favourable grammage per tonne.

“Exploration activities that include trenching, resampling and mapping have been done at some of the sites and the outcome is encouraging.

“We have set in motion plans for full-scale operations so that we increase productivity at the three sites,” said a senior company official who spoke on condition of anonymity.

The insider added the mission was to significantly contribute to yellow metal production in the country through increased investment in exploration and extraction on a large scale.

This comes as the Second Republic is looking to grow mining to a US$12 billion industry by the end of 2023, with gold expected to contribute US$4 billion.

Statistics from Fidelity Gold Refinery (FGR) show that Zimbabwe’s gold production surged a weighty 21 percent to 2 875 tonnes in May this year from 2 376 tonnes in the previous month, which was the highest in the first five months of the year.

The improvement was largely attributed to the de-watering initiatives that improved accessibility to the mines, especially by small-scale miners that lack sophisticated machinery in their operations.

However, the improved output of gold for the first five months of the year was marginally lower at 11,4 tonnes compared to 13,1 tonnes in the corresponding period last year.

FGR is the country’s sole authorised buyer of bullion.

“We are highly optimistic about the partnership. This is a new beginning for us and we are engaging geologists for further exploration over the several pits in our camp. The programme will include surface mapping, ground geophysical programmes as well as channel sampling within and around existing pits and trenches,” added the source.

“Negotiations are still in progress but indications are that the deal will be finalised soon.”

The official also highlighted that the mining company, which also has a footprint in Binga and Hwange, is acquiring more assets around the country in a development expected to drive national productivity and employment creation in line with Zimbabwe’s national vision of attaining upper-middle-income economic status by 2030.

This is on the back of various programmes that include new investments in the gold sector, rehabilitation and expansion of operations.

“There is a huge cake for everyone in the mining sector. Nyamatsatse is open to new synergies. We are guided by the Government’s mantra ‘Building a Prosperous Zimbabwe, Leaving No One and No Place Behind’ hence we remain open to partnerships,” the official said.

Gold is Zimbabwe’s single largest export.-herald