A MAJOR shareholder in Duration Gold Group has been accused of holding on to Exclusive Prospecting Orders (EPO) that he cannot afford to pursue, denying the country an opportunity to develop valuable goldfields through modern exploration.
The government recently announced that it was reviewing all exclusive prospecting orders issued to investors across the country, amid revelations that prospecting rights will be revoked for projects that have no progress.
EPOs give exclusive rights for investors to prospect for specified minerals in an identified location to find fresh deposits. An EPO is issued for three years with an option for renewal for another three years, but in most cases reviews have noted little progress on the ground forcing the government to take action against EPO holders.
However, government sources told NewsDay that Duration Gold, the owners of Vumbachigwe Gold Mine and its subsidiary Forbes and Thompson (Pvt) Ltd, were failing to comply with statutory regulations on retention of EPOs in Zimbabwe. They are also accused them of misrepresenting to the Zimbabwe Mining Affairs Board (MAB) on the geological work physically undertaken in comparison to the declared works programmes.
“This also includes the non-payment of the EPO licence fees, and the inability of the nominated funding business to finance the respective EPO development, including the payment of wages due to the people undertaking the sampling in the field,” said one source.
“The concern is that this practice is contrary to the fundamental intention of the EPO concept and frustrates the growth potential of mining development in Zimbabwe.”
On November 27, 2017, 11 applications were made to MAB for the award of specified EPOs in the name of three constituted businesses. The EPO applications were subsequently approved and published in the Government Gazette.
Reports indicated that an airborne survey was undertaken by a Canadian business called Xcalibur between June and July of 2022.
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“While the airborne survey was undertaken, only limited indicative results were provided as the cost of the survey had not been paid for in full in terms of the funding agreement,” said another source.
“These costs were to be predominantly met by Forbes and Thompson, which was unable to meet its monthly wage and salary bill, brought about by significant declines in its gold production.
“As of January 2024, US$223 000 was still outstanding for the work that they had undertaken. Consequently, the true value of the airborne survey has not been incorporated into the 11 EPO projects, with the soil sampling programme only being undertaken targeting the indicative areas.”
On the EPO held by Pearline Mineral Exploration (Pvt) Ltd in Shangani North, the airborne survey was undertaken without the consent of the landowners, the Oppenheimer family.
“Due to this oversight a legal suit has been initiated by the Oppenheimer’s Debshan Ranch against Pearline for the disturbance and traumatisation of the wildlife that has been relocated to this property,” the source added.
There is also a dispute with respect to the 10 EPOs awarded to Canlite and Infield where Forbes and Thompson was expected to fund the approved work plan with a letter of support having been provided by DGL Finance Ltd, a Mauritius-registered business, forming part of the overall Duration Gold Group. Duration Gold spokesperson Robert Mukondiwa asked for questions in writing last week, but had not responded by the time of going to press.
