Home » General » Mwana Africa Aims to Increase Gold Production

Mwana Africa Plc is targeting a 208 percent increase in gold production to 200 000 ounces in the next three years through a series of initiatives to ramp up output at operations in Zimbabwe and DRC.The Alternative Investment Market listed multi-commodity miner has a series of initiatives planned for its current and only gold producer Freda while exploration for new deposits is underway in DRC.

Freda is currently producing 65 000 ounces of gold per annum and is working on increasing output through the tailings treatment project and third party feed to take production to 100oz by 2016.

The projects will further increase output, which has already risen 38,6 percent since March 2012. Construction of the tailings treatment plant at Freda began in 2012 and is now at aanced stages.

Current gold exploration at the Zani-Kodo in DRC will result in an additional 250 000oz when the first and second phases are finished by 2017. Mwana’s eventual output target is 400 000oz after 2017.

Exploration at the Zani-Kodo has resulted in 2,6 million ounces of gold being declared as at February 2013 while a 2,9 million oz of resource was declared after a resource update in October 2013.

In the 12 months to March 2014, gold production at Freda was 58 000oz compared to 65 000oz over the year March 2013.

The AIM listed resource company also controls 76 percent in Africa’s only integrated nickel producer, Bindura Nickel Corporation and is working hard to significantly increase production.

The company has registered significant growth in production since coming out of care and maintenance in 2012 after recapitalization.

A nickel concentrate off-take agreement was signed with Glencore International in 2012 followed by a $23 million recapitalisation completed in 2013 after which production resumed.

Mwana Africa said 7 026 tonnes of nickel concentrate have been sold in the 12 months to March 2014 while a massive ore body has been discovered resulting in a 156 percent increase of ore body.

In February 2013 114kt nickel resource were declared after a resource update for Trojan Mine while the first shipment of concentrate from Trojan was achieved in April 2013, following the restart.

A new mine method validated in SRK Consulting’s competent person’s report was completed in October 13. The new mining method targeted rich ore bodies of nickel, which helped increase the cash-flows while at the same time reducing the cost of production. The group is focusing on improving marketing, better concentrate terms and payables, the re-deep project, feasibility for its dormant smelter and refinery and developing its Hunters Road project. Mwana is also exploring for copper in Katanga Province, DRC.

Source : The Herald