Aussie miner gets funding for Zim ops

HARARE - Australia-based mining group Prospect Resources Limited (Prospect) has received the first tranche of $103 725 from a $300 000 placement targeted at funding its Zimbabwean gold operations.

The finances will provide general working capital, fund exploration and pay for the progressing litigation against Alexander Molyneux,

Blumont Group and Pacific Advisers in relation to a subscription for $3,9 million worth of shares in Prospect.

Harry Greaves, a Prospect Resources Zimbabwe Limited non-executive director, said the company had allotted 6 915 000 shares at $0.015 each to an African-based shareholder.

In November, the company announced the conditional placement of over $300 000 via the issue of 20,666,668 shares at $0.015 each.

The miner’s Zimbabwean assets include the Prestwood Gold Mine that had historic production of about 16 000 ounces of gold at 33.1 grammes per tonne and is a target for development.

In October last year, Prospect’s rock chip sampling returned economic gold grades in 8 of the 9 traverses at its 70 percent-owned Bushtick Gold Project in Zimbabwe.

The results confirmed the theory that gold mineralisation exists along large portions of the historically mined deposit, which can be exploited from a surface operation.

Bushtick is a dormant mine situated eight kilometres north northeast of Esigodini in the Esigodini Greenstone belt, in the grounds of Falcon College.

This had historical production of about 470 000 ounces of gold at 5,4 grammes per tonne.

Best results from the rock chip sampling programme totalling 250 metres include 5,1 grammes per tonne over 17 metres, 5,4 grammes per tonne over 15 metres and 2,8 grammes per tonne over 12 metres.

The mineralised zone lies within the oxidised altered package of meta-basalts and andesites. Gold grades have been identified within ferruginous shear zones and stockworks.

This mineralised package lies along the flanks of the “Main Gold Reef” that was exploited largely in the 1930’s and 40’s.

Historically, the contact of the “Main Gold Reef” was defined on a cut-off grade, of  less than 4 grammes per tonne, resulting in considerable mineralised material remaining that could be mined economically today.

A second phase of chip sampling is scheduled to commence shortly at the Open Cut, South of the Warwick East Shaft.

The Australia Stock Exchange-listed miner plans to build a southern Africa-based mining company of international scale using its Zimbabwean operations.

Comments (1)

must be a very minute mine. 100k only? zimassets at play?

Donato - 19 January 2015

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