Business Reporter
SHAMVA Gold Mine plans to develop a US$140 million open pit mining operation at Shamva Hill, which will see the miner producing 200 000 tonnes of ore per month over the next 16 years.
The mine is presently producing 45 000 tonnes of ore per month from its underground operations, a figure that was last achieved in 1910.
Operations at the Shamva Hill Open Pit project are expected to start in two years.
Speaking to journalists during a recent media tour of Shamva Gold Mine, Engineer Gift Mapakame, the mine’s general manager, said they were currently undertaking risk evaluation of the project and considering engineering, procurement and construction partners that could be engaged for the project.
“At this juncture, we are seized with a project (Shamva Hill Open Pit operation) that has close to 1,3 million ounces at a grade of 1,40 grammes per tonne.
“Our technical and financial model shows us that its net present value is about US$140 million at a discounted rate of 8,5 percent, internal rate of return of 29 percent and it has got a peak funding requirement of US$126 million,” said Eng Mapakame.
“Instead of going deeper in our underground operations, we want to come back to the surface because we believe we have identified a resource that we can exploit from the surface at a profit.
“So, we have done a bit of some work around the Shamva Hill Open Pit project, drilling a couple of holes and conducting a pre-feasibility study, and a bankable feasibility study.”
The mine returned to production after Kuvimba Mining House (KMH) took over from Metallon Gold in April 2020.
It was initially placed under business rescue to protect the assets from confiscation by creditors, as well as resolve legacy issues.
Shamva Gold Mine resumed operations in 2020, following a US$15 million recapitalisation by KMH.
The mine, which is one of Zimbabwe’s oldest gold assets, was discovered around 1865, before exploitation started in 1893 by a company that was called Goldfields of Rhodesia.
In its long history, Shamva has changed hands several times.
Metallon Gold, which is owned by South African businessman Mr Mzi Khumalo, acquired it in 2002.
Following the acquisition by KMH, the mine has improved annual production to nearly 700 kilogrammes.
In the fiscal year that began in April this year, the mine expects to increase yearly output to 770kg.
The target is driven by an increased average grade of 1,83g per tonne from about 1,8g per tonne on the back of capital activities (exploration, drilling and evaluation) the mine is implementing to create more options with the ore body.
In his address during a tour of the underground mine, the asset’s mine captain, Mr Isaac Rukatya, said: “This is a high-grade low-tonnage mine, where we mine with our grades actually driven from the financial plan. They are drawn for the whole financial year.
“We employ a mining method called sub-level open stopping and our mining areas are divided into sub-levels, each being 30 metres above the other.
“Our ores are drawn from the lower course level and the main hoist that we have has got a design capacity of 1 800 tonnes per day.”
Shamva Gold Mine is a conventional operation, whose machinery includes 10-tonne locomotives with a capacity to tram at most 30 tonnes in a single draw, as well as other earthmoving equipment.
Since 2020, the mine has produced an average of 520 000 tonnes of ore on an annual basis mined at a grade of 1,70g per tonne.