ZIMBABWE MINING DEVELOPMENT CORPORATION (ZMDC) INVESTMENT PROJECTS AVAILABLE 2014

Transcription

1 ZIMBABWE MINING DEVELOPMENT CORPORATION (ZMDC) INVESTMENT PROJECTS AVAILABLE 2014 As espoused in the Zimbabwe Mining Development (ZMDC) Act [Chapter 21:08], ZMDC has a mandate; a) To invest in the mining industry in Zimbabwe on behalf of the State b) To plan, coordinate and implement mining development projects on behalf of the State. Zimbabwe Mining Development Corporation has outlined below various investment projects available in The Corporation welcomes interested investors to contact ZMDC Business Development Office to discuss in detail the investment opportunities available. 1. ELVINGTON MINE Gold Chegutu Town, Zimbabwe 21 Mining Claims Total Area 473 Hectares 8 Blocks Total Area 80 Hectares Infrastructure Total Assets Valued at US$10 Million as at 2012 TOTAL US$20 Million for: 1. Mine Resuscitation Elvington Mine closed down in 2003 when the main shaft collapsed due to intense faulting and inadequate pillar support in the area. At the time of closure, the Mine s production levels were between 40 and 50 kilogrammes of gold per month. Mine dewatering is in progress. 2. Development and Growth Underground ore reserves of 390,000 tonnes@3.4 grams per tonne Development and exploration drilling required for evaluation Projected Monthly Revenue of US$2.4 Million with resulting Net Profit of US$800,000 Per Month at lucrative Profit Margins of 33% Optimisation of Production to Milling Capacity of 25,000 tonnes per month Production grade of 2.4 grams per tonne to produce 50 kilogrammes of gold per month and rewarding dividends for shareholders 1

2 2. JENA GOLD MINES Gold 100 Kilometres West of Kwekwe Town, Zimbabwe in the Silobela Communal Lands Single Mining Lease Approximately 40 Square Kilometres Infrastructure Total Assets Valued at US$6.7 Million as at 2010 TOTAL US$15 Million for: 1. Mine Recapitalisation - Mechanisation of underground production drilling, loading and tramming - Upgrade of surface haulage fleet - Plant refurbishments to increase throughput, especially in the crushing and milling circuits - Improvement of water and electricity supplies 2. Development and Growth - Shaft re-deepening programme to access depth extensions of ore bodies, that is, establishing a central and single lift hoisting system - Underground ore reserves of 546,000 tonnes@4.6 grams per tonne - Surface exploration and development to increase ore reserve base Projected Monthly Revenue of US$2.8 Million with resulting Net Profit of US$1.1 Million Per Month at lucrative Profit Margins of 38% Optimisation of Production to Milling Capacity of 25,000 tonnes per month Production grade of 3.5 grams per tonne to produce 60 kilogrammes of gold per month and rewarding dividends for shareholders 2

3 3. SABI GOLD MINE Gold Zvishavane Town, Zimbabwe Mining Lease of 8 Blocks Approximately 3,390 Hectares TOTAL US$15 Million for: 1. Mine Recapitalisation - Mechanisation of underground production drilling, loading and tramming - Plant refurbishments to increase throughput, especially in the crushing and milling circuits - Improve electricity supplies 2. Development and Growth - Shaft re-deepening programme to access depth extensions of ore bodies, that is, establishing 3 further production lifts - Establish a more effective spillage handling system - Improve ore handling and transfer system and haulage drainage - Underground ore reserves of 230,000 tonnes@2.9 grams per tonne - Surface exploration and development to increase ore reserve base. 95% of the mineralised shear requires exploration and development. Moving Mine to operate at capacity: Milling Capacity 500 tonnes per day; Installed Capacity for Gold Production 43 kilogrammes per month Projected Monthly Revenue of US$2 Million with resulting Net Profit of US$680,000 Per Month at lucrative Profit Margins of 33% Optimisation of Production to Milling Capacity of 15,000 tonnes per month Production grade of 3.4 grams per tonne to produce 43 kilogrammes of gold per month and rewarding dividends for shareholders 3

4 4. SMM HOLDINGS (PRIVATE) LIMITED s Mining Leases and Claims Infrastructure Chrysotile Fibre SMM Holdings is a subsidiary of the Zimbabwe Mining Development Corporation and is comprised of: 1. Gaths Mine in Mashaba 35 Kilometres West of Masvingo Town, Zimbabwe 2. Shabani Mine Zvishavane Town, Zimbabwe 1. Gaths Mine 4,355 Hectares 2. Shabani Mine 3,546 Hectares Total Assets Valued at almost a Billion United States Dollars TOTAL US$135 Million for: 1. Mine Recapitalisation - Repair and replace capital equipment - Mining of chrysotile fibre 2. Working Capital - Dewatering of the flooded Mines Breakdown of Funding Requirements: Gaths Shabani Capital Expenditure $38.4 million $51.2 million Working Capital $14.2 million $28.7 million Total $52.6 million $79.9 million Proven and Probable Ore Reserves are metric 5.9% fibre representing a Life of Mine of 17 years at full plant capacity of 150,000 tonnes of bagged fibre per year Inferred resources 25 to 30 years of production Projected net cash flows of more than US$15 Million per month at full capacity. Payback of 5 years Return on Capital Employed being 27% Rewarding Dividends for shareholders 4

5 5. COPPER MINES MHANGURA, ALASKA AND SANYATI s Funding Required Copper 6. Mhangura Copper Mines 139 Kilometres North-West of Harare 7. Alaska (Lomagundi Smelting and Mining) 130 Kilometres North-West of Harare 8. Sanyati Ore Bodies 115 Kilometres South-West of Chinhoyi Town Total Area 15,547 Hectares broken down as follows: 1. Mhangura Copper Mines 4,099 Hectares 2. Alaska (Lomagundi Smelting and Mining) 4,445 Hectares 3. Sanyati Ore Bodies 7,003 Hectares TOTAL US$350 Million for: 1. Mines Recapitalisation Mines operationalization Designed plant throughput is 1 Million tonnes per annum Commission a new Smelter and Resuscitate the Refinery 2. Development and Growth The Mines have total ore reserve of Million tonnes of proven and probable copper complex ores accessible to mining: Mine Mhangura Copper Mines Alaska (Lomagundi Smelting and Mining) Sanyati Ore Bodies Section/ Deposit Resources & Reserves Miriam Mine Proved & Probable 7.21 Million tonnes@ 1% Copper Shackleton&Angwa Mines Copper Queen & Copper King Mines Other Notes - Deposit has potential of resources of a further 60 metric 1% Copper - Also gold, silver and molybdenum mineralisation 0.2 metric 0.85% Proven & Probable Copper Measured & 3.1 metric 0.91% Indicated Copper Also gold, silver and molybdenum mineralisation - For Sanyati Copper-Lead-Zinc Ore Bodies: Proven & 14.4 metric 2.88% Probable Copper Indicated 3.52 metric 3.5% Copper - The total grade is as follows: 1.56% Copper, 1.43% Lead; 1.73% Zinc 5

6 Significant profit based on the prevailing and attractive average world market prices for copper and expected price gains in the future A sound rate of production to be achieved in the first year of operation which will steadily increase during the life of the project and rewarding dividends for shareholders 6

7 9. LYNX GRAPHITE MINE Graphite 55 Kilometres from Karoi Town, Zimbabwe Mining rights area is 570 Hectares 21 Standard Base Metal Blocks with 516 Claims The Mine also owns a farm 3. Business Plan TOTAL US$4 Million for: 1. Mine Recapitalisation - Plant upgrade and refurbishment - Blackstone Shaft Project to increase Life of Mine 2. Exploration - Trokiadza Exploration Project for generation of future resources - Estimated in-situ resource value of US$60 Million 3. Development - Aggressive marketing to increase market share - Product beneficiation project Graphite Product Uptake New Technology Arrangements Rewarding Dividends for shareholders 7

8 7. SANDAWANA EMERALD MINES Product Range The Mines are 95 Kilometres South West of Zvishavane Town, Zimbabwe The Sandawana Cutting and Polishing Factory is in Harare, Zimbabwe Emeralds Sandawana Emeralds are well known internationally for their splendid vivid green colour due to their chromium content. The green colour is very attractive with striking rich dark green tones which are not only restricted to the large stones but also found in the smaller stones with typically even distribution. The emeralds show consistent physical properties with high refractive indices which make them shine brightly in the light. Sandawana offers a wide range of high quality products: 1. Cut and Polished Stones in a variety of shapes and range of cuts; round, emerald and fancy shapes suitable for jewellery. Sizes vary from +1.1millimetres to 3millimetres in diameter grade, according to their quality from grade 1 to Rough Emeralds These can be further processed for jewellery purposes. They are sized and sorted into four categories: Cuttable Select; Labour Rough Select; Lad Rough Good; Mine Rough according to quality which are used for decorations on buildings, walls, swimming pools, floors and tiles. TOTAL US$4 Million for: 1. Development - Aggressive marketing to establish a market and grow new and niche segment - Upgrade and replacement of cutting and polishing equipment 2. Mine Recapitalisation - Plant upgrade and refurbishment - Shaft Development Project to increase Life of Mine 3. Exploration - Generation of future resources Emerald Product Uptake New Technology Arrangements Rewarding Dividends for shareholders 8

9 8. DIAMOND BENEFICIATION AND MANUFACTURING Diamonds Harare and Mutare, Zimbabwe Feasibility Reports TOTAL US$50 Million for: - Setting Up each individual Diamond Cutting and Polishing Factory in Harare and Mutare - partner to receive equity in the project - ZMDC to contribute assets to the project in the form of rough diamonds 51% to ZMDC and 49% Partner Rewarding Dividends for shareholders 9

10 10. LIMESTONE MINING AND PROCESSING Limestone Mberengwa Growth Point, Zimbabwe 10 Blocks of Mining Claims Total Area 270 Hectares TOTAL US$225 Million for: 1. Exploration Programme Inferred ore resource of metric tonnes of limestone at an average grade of 49.5% Calcium Oxide (CaO) and 4.8% Magnesium Oxide (MgO). Limestone Saturation Factor of and Silica Ratio of Mine and Plant Development for Limestone Extraction Estimated in situ resource value of US$2 billion 3. Establishment of a Cement Manufacturing Plant 4. Working Capital Establishment of a Cement Plant with capacity of 850,000 tonnes per year Seven (7) years payback following a two-year project implementation phase Net Present Value (NPV) projected at US$55.4million at an 8% discount rate given a cement price of US$200 per tonne Ready markets in the Manicaland and Matabeleland regions of Zimbabwe Rewarding dividends for shareholders 10

11 11. COAL AND COALBED METHANE MINING Coal Coalbed Methane Lupane Gwayi River Hwange Area, Zimbabwe Special Grants Total Area of Approximately 665,748 Hectares being: Coal 27,883 Hectares Coalbed Methane 666,748 Hectares Geological Reports Regional Reconnaissance Work only 1. Exploration Programme 2. Exploration, Mining and Processing of Coalbed Methane Estimated Value of Project Coal: US$50 Million Estimated Value of Project Coalbed Methane: US$200 Million Rewarding dividends for shareholders 11

12 12. TANTALITE MINING AND PROCESSING Tantalite Also potential for several other minerals lithium, banded ironstone, gold, fuchsite slate 95 Kilometres South West of Zvishavane Town, Zimbabwe Mining lease area of 3,924 Hectares Geological Reports 1. Exploration Programme for Tantalite 2. Mining and Processing of Tantalite 3. Exploration, Mining and Processing of Other Potential s Rewarding dividends for shareholders 12