Pambili generates US$60k gold sales in Q3

PAMBILI Natural Resources Corporation, a Canada-based natural resources exploration and development company, generated gold sales worth US$60 000 in the third quarter primarily through onsite toll milling operations at its Golden Valley mine in Bulawayo.

Revenue generated will assist offsetting expenses in Zimbabwe operations.

Recently, the entity signed a 12-month agreement with Long Strike Investments (Pvt) Limited to acquire gold claims in Gwanda, Matabeleland South Province.

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

Gold is Zimbabwe’s biggest 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.

In an update, Pambili’s chief executive officer Jon Harris said until the firm starts processing its own ore, their quarterly revenue figures are based on the variable grade of ore that passes through its toll-milling plant at Golden Valley and are likely to fluctuate.

However, he said it demonstrates that they have an ongoing revenue stream that helps to support Pambili’s in-country operating costs—which include the underground drilling programme at Golden Valley.

“This third-quarter revenue demonstrates genuine progress for Pambili.

“These gold sales help offset our expenses in Zimbabwe, as we assess Golden Valley’s commercial gold potential through our drilling program and determine our prospects with London Wall,” he said.

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

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 November, the firm 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, totalling 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 the approval of the Toronto Venture Exchange, and any Pambili shares issued to complete the potential acquisition will be subject to a statutory four-month-and-one-day hold,” said Pambili.

Pambili’s immediate goal at London Wall is to generate near-term revenue by preparing for the installation of a 20-tonne-per-day crushing and milling plant already purchased by Long Strike Investments (Pvt) Ltd.

It added that it seeks to reprocess sands from an onsite dump estimated to contain some 100 000 tonnes of material.-chroncile