METALLON Corporation has recorded a 9% increase in gold production to 22 565 ounces in the second quarter of the year, up from the previous quarter on the strong performance of How Mine.
BY TARISAI MANDIZHA
In the first quarter of the year, output was 20 673.
How Mine contributed 12 731 ounces of gold in the second quarter in 2016 from 9 540 ounces in the first quarter of 2016. Output at Metallon’s other local mines — Shamva, Arcturus, Redwing and Mazowe — declined during the period under review.
The second quarter group C1 costs were $764 per ounce and all-in-sustaining costs (AISC) were $971 per ounce. “This is an improvement of 14% and 16% compared to Q1 2016 (Q1 2016: C1 cost $884 and $1 156). This improvement was the result of increased production and cost savings from overtime control and central procurement. As production and cost efficiencies improve throughout the year, with new equipment and increased capacity, Metallon expects these costs to reduce further,” the company said.
The mining company said power interruptions continued to affect operations in the period under review, after losing 112 hours of production, equating to approximately 1 700 ounces. In the first quarter of the year, Metallon lost 4 275 ounces due to power interruptions.
“Metallon is working on possible solutions for supplementing grid power supply,” it said.
Metallon Corporation chief executive officer, Ken Mekani said the new processing plant at Mazowe was 80% complete, with all key equipment on site and the gold producer has confirmation from contractors that the plant would be commissioned in the last quarter of the year.
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The group said the new Mazowe processing plant will increase capacity at the mine to 70 000 tonnes per month, while Redwing Mine continues to increase production, following the resumption of operations in November 2015.
“The appointment of contract miners at Shamva Mine and ramp up at Redwing Mine will also provide increased production in the second half of the year. We look forward to the continued expansion across the group and reaffirm our production target of 120 000 ounces in 2016,” Mekani said.
He said Metallon’s huge capital expenditure programme over the next few years will considerably increase production and generate future revenue.
“Although the initial onset of liquidity challenges impacted mining activities due to delays in paying for imported products, we are encouraged that the Reserve Bank of Zimbabwe is prioritising payments within the mining sector.
Metallon continues to work closely with the Chamber of Mines and we are engaging regularly with the Ministry of Finance and the Ministry of Mines and Mining Development,” Mekani said.
