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Email ArticleAim-listed resource and development company African Consolidated Resources expected to start first-phase production at its Pickstone gold project, in Zimbabwe, in mid-2012.
The Zimbabwe-focused company said the project, although subject to
funding, is successfully on route in its development to generate cash
through its Pickstone sulphide tailings dump project.
Cash generation could fund subsequent investment in production phases
at Pickstone, while affording the company a more aggressive drillout
of other assets, said CEO Andrew Cranswick in a statement.
Throughout the project ramp-up and production, the company had
remained committed to full compliance with Zimbabwe's indigenisation
regulations.
African Consolidated was confident that it would raise funding and
would announce its progress within the next quarter, he said.
Meanwhile, the miner reported that 10 700 m of drilling, to upgrade
current Joint Ore Reserves Committee- (Jorc-) compliant resource of
one-million troy ounces, had been undertaken at its Gazema gold
project.
These results were expected to be released in the first quarter of 2012.
Executive chairperson Roy Tucker said African Consolidated believed
the total project resource was likely to be higher and the Gadzema
gold project could develop into a major mine.
“However, the ongoing resource definition would run in parallel with
research on the funding of such a large-scale operation, given the
internationally perceived political risk to finance opportunities in
Zimbabwe,” he added.
More than 35 000 m had been drilled in Gadzema and, while awaiting
assays from the latest campaign, the company was planning the next
resource drill out.
It is hoped that the bulk of the future funding would be sourced from
the near-term production at Pickstone.
Meanwhile, in line with African Consolidated’s planned Zambian
expansion, particularly in the Greater Kasempa iron-oxide/copper/gold
district, in north-west Zambia, several asset acquisitions have been
concluded while several more were under discussion. A broad
exploration of the highly prospective region was under way.
African Consolidated, on Thursday, reported a loss of $1.7-million in
the six months to September 30, 2011.-miningweekly
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