Metallon ups gold production

HARARE - Zimbabwe's leading gold producer Metallon Corporation (Metallon) picked the perfect quarter to deliver robust production growth.

According to the company’s preliminary third-quarter production report, its gold production jumped 18 percent to 26 622 ounces in the three months to September at a time when prices of the precious metal are at their 2016 peak.

Gold prices averaged $1 273,60  per ounce in the third quarter compared to an average of $1 070 per ounce during the first half of the year.             

Mining experts said this sets up the gold miner to deliver strong year-end financial results when it reports them early next year.

This was after the stellar third quarter performance saw the Mzi Khumalo-owned resources group registering an impressive production of 69 680 ounces in the nine months to September while direct cash costs (C1) declined by four percent.

The group attributed an improvement in C1 costs to increased production and cost efficiencies as a result of new equipment and increased capacity.

Metallon chief executive Ken Mekani said the exceptional results were a result of improved production across the group’s mines and an outcome of increased investment in operations over the last year.

“This achievement demonstrates the future potential of our assets in Zimbabwe,” he said.

The United Kingdom headquartered firm is currently commissioning its new processing plant in Mazowe and will be focused on improving production at Shamva and Redwing Mines.

“Future expansion plans are now underway across the group which will deliver increased growth in 2017 and beyond,” Mekani added.

In the period under review, development metres drilled were

4 494, a 14 percent increase on 3 871 metres drilled in the 2016 second quarter.

Metallon expects its group production for this year to be approximately 102 000 ounces due to delays in the construction of the New Processing Plant at Mazowe Mine and ramp up at Redwing Mine.

Metallon owns and operates four gold mining operations and has a world-class gold resource of over 8,3Moz.

How Mine, near Bulawayo, is the group’s flagship operation and produces over 55 percent of production.

Shamva and Mazowe mines, both located near Harare, each produce approximately 20 percent and Redwing Mine, near Mutare, reopened in November 2015 and is currently ramping up production.

Metallon is focused on increasing gold production significantly by improving current mining operations and through ambitious expansion across all operations, with a target to be a 500 000 ounce per annum producer in the next five years.

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