MINING PROJECTS · MINING PROJECTS and OPPORTUNITIES for INVESTMENT 2017 9 2.1...

MINING PROJECTS and OPPORTUNITIES for INVESTMENT 2017

1

MINING PROJECTS and OPPORTUNITIES

for INVESTMENT

Zimbabwe Mining Development Corporation


2

TABLE OF CONTENTS PAGE

SUMMARY OF MINING PROJECTS AND OPPORTUNITIES FOR INVESTMENT 1

1. PRECIOUS METALS SECTOR 3

1.1 Elvington Gold Mine 4

1.2 Golden Kopje Gold Mine 6

2. BASE MINERALS SECTOR 7

2.1 Tin-Tantalite-Lithium From Kamativi Mine Dump and Lutope Special Grant 7

2.2 Copper Mines – Mhangura, Alaska and Sanyati 8

2.3 Sandawana Mine - Tantalite and Other Minerals 9

3. INDUSTRIAL MINERALS SECTOR 10

3.1 Lynx Graphite Mine 10

3.2 Limestone Mining and Processing 12

3.3 Asbestos Mining and Processing 13

4. ENERGY MINERALS SECTOR

4.1 CoalbedMethaneGasMiningandBeneficiation 14

CONTACTS 15


3


4

The Zimbabwe Mining Development Corporation (ZMDC) invites interested investors to take advantage of the wide range of investment opportunities we are offering.

Our portfolio covers a variety of clusters including: precious metals and precious stones, base minerals, industrial minerals as well as energy minerals.

All these opportunities present great potential for feasible and bankable investments.

Not only will the investments achieve impressive returns for the investor, but will also enable crucial contribution to the socio-economic development of Zimbabwe.

For Investment attractiveness, the Zimbabwe Government is currently re-aligning its Policies in the minerals sector inordertopromotemoreorderly,efficientandeffectiveperformance, market driven initiatives and results-oriented miningandbeneficiationprojectsinthecountry.

The available Investment projects are summarized below.

NO. MINERAL MINING LOCATION DISTRICT MINING PROVINCE

1. GoldElvington MineGolden Kopje Mine

ChegutuChinhoyi

Mashonaland West

2.Tin, tantalite, lithium, berrylium, niobium, (pegmatites minerals)

Kamativi MineLutope MineKapata Mine

Hwange Matabelend North

3.Emeralds, Iron Ore, Tin, tantalite, lithium, berrylium, niobium, gold

Sandawana Mine Mberengwa Midlands

4. CopperAlaska MineMhangura MineSanyati Mines

MakondeGokwe North

Mashonaland WestMidlands

5. Graphite Lynx Mine Karoi Mashonaland West

6. Limestone Mumburume Mine Mberengwa Midlands

7. AsbestosShabanie MineGaths Mine

ZvishavaneMasvingo

MidlandsMasvingo

8. Coalbed MethaneMbungu – LupaneGwayi - Lupane

Lupane – Gokwe S Lupane – Nkayi - Nyamandlovu

Matabeleland North

Summary of Mining Projects and Opportunities for Investment


5

PRECIOUS METALS AND PRECIOUS STONES

1


6

1.1 ELVINGTON GOLD MINE

Mineral Gold

Location 14 km North of Chegutu Town, Zimbabwe

Mineral Resources and Reserves(Local Standards)

Mining Rights21 Mining Claims – Total Area 473 Hectares. Adjacent Farmland of 1274 Ha.Registered and operating as Mineral Development (Pvt) Ltd.

Infrastructure Wide tarred road is 1km away, access to water and electricity,Total Assets – Valued at US$10 Million as at 2016.

Documentation

Available

1. Geological Reports

2. Feasibility Reports

Production History and Capacity

Elvington Mine closed down in 2003 when the main shaft collapsed due to intense faulting and inadequate pillar support around the shaft. The Mine is on care and maintenance, underground dewatering is in progress.

Production capacity after re-capitalization => 15,000tonnes of ore milled, to produce 50kg Au/month.

Proposal

1. Dump retreatment,

2. Mine the surface oxidized reef (oxide cap) and heap leaching of the ore, for quick mine resuscitation process.

3. On underground, start with capital development of new shaft and then production resuscitation.

4. Exploration activities are required for additional resource generation to justify mine expansion.

5. Development and growth – develop northwards to link up with Sarling exploration Shaft section, some 2km north of Elvington Mine.

Funding Required TOTAL US$13.5 Million

Investment Attractions

High returns to the Investor, 170% in one year.A 1-tonne /year gold mine, There are low hanging fruits in dump and oxide cap, high expansion potential.Removal of royalties on gold production to promote national output.

Friendly tax regime, multi-currency is usage – US$, AUS$, BP, IR, Yen, Rand, Euro.

Investment Benefits

Mineresuscitation,employmentcreation,revenuetothefiscus.

Ore Category Tonnage Grade g/t Content - kgOre Reserve 236,602 2.5 591.5Ore Resource 1,005,135 1.82 1,834.6Total 1,241,737 1.95 2,426.1Slimes Dump 2,419,862 0.87 1,949.9


7

1.2 GOLDEN KOPJE GOLD MINE

Mineral Gold

Location140 kilometres North-West of Harare, Zimbabwe and about 22km south of Chinhoyi town along the Zumbara road.

Mineral Resources and Ore Reserves(Local Standards)

Mining Rights A mining Special Grant measuring 3,100Ha.

Infrastructure and Production History

AbrownfieldInvestmentwiththemineclosedin2012. Good power and water supplies, access road is tarred road up to the mine. Two large surface shafts and a milling plant with capacity 15,000tonnes of ore/month, to produce above 50kg gold /month.

Has potential for growth due to presence of a high capacity single lift hoisting system from underground, availability of open castable reserves and a high Plant capacity.

Documentation

Available

1. Geological Reports 2. Feasibility Reports

Partnership Proposal

Joint Venture partnership,Shareholding structure sought is 51% ZMDC : 49% Investor.

Funding Required TOTAL US$8million required

Project Proposal

(a) Mine re-capitalization for production resuscitation, conversion of resources to reserves, equipment upgrading, dump retreatment and open cast mining.

(b) Exploration and development are planned on the existing ore bodies in order to convert the drill indicated resources to ore reserves and to ramp up reserves. i.e. J-Lens, Golden Kopje Main North Parallel and Union Jack (open-castable).

(c) Highproductivityandprofitabilitylevelsareexpectedbecauseofwidereefswithhighgradesunderground,availability of open-castable reserves on surface and a high Plant capacity.

Investment Attractiveness

o A 1-tonne /year gold mine. There are low hanging fruits in the tailings dump and the open castable reserves on surface.

o The mine has a high future potential. It is sitting on the gold rich, N-S striking Eldorado Shear Zone, stretching across the City of Chinhoyi.

o Removal of royalties on gold production to promote national output.

Investment Benefits

* OptimizationofProductiontobenefitshareholders,highreturns

* Mineresuscitation,Employmentcreationandboosttoeconomywithrevenuetothefiscus.

* Dump retreatment and open cast mining have got potential for immediate revenue generation and to buy time for full revamping underground as well as further exploration investigations for future growth.

* Exploration activities are required for additional resource generation to justify expansion.

* A 1-tonne /year gold mine, there are low hanging fruits in dump and oxide cap, high future potential.

* Removal of royalties on gold production to promote national output.

Ore Category Tonnage Grade g/t Content - kgReserves 61,734 5.2 319.8Resources 1,049,761 5.0 5278.2Total 1,111,495 5.0 5597.9

Slimes Dump 622,000 0.8 377.6


8

3. BASE MINERALS SECTOR


9

2.1 TIN-TANTALITE-LITHIUM PROJECT - KAMATIVI MINE DUMP AND LUTOPE SPECIAL GRANT

Mineral Tin, Tantalite, lithium, beryllium, niobium, rubidium, mica and tungsten.

Location290 kilometres north of Bulawayo, easily accessible by road. Lutope is situated 35 kilometres from Dete railway siding turnoff. Kamativi is 45km from Dete.

Mineral Resources and Reserves

o Lutope has a drilled tin ore resource of at least 21 million tonnes grading 0.12%Sn already available.

o The Kamativi mill tailings dump has at least 22 million tonnes of 0.75%Lithium, 0.045% Beryllium; 0.34% Tin; 0.01% Tantalite; 0.01% Niobium; 0.3% Rubidium; 17.5% Mica.

Mining Rights Exploration Special Grant No.5651 – approximately 4275 hectares, 9.5km x 4.5km

Infrastructure An exploration prospect with no buildings on site.

Documentation

AvailableGeological reports and past production records.

Production HistoryConsiderable tin and tantalite concentrates have been produced in the past from pilot mining. Small but ‘technically’significanttonnagesoftheLithiumbearingmineralAmblygonitewerealsoproduced.

Project Proposal

The project programme involves:

a) Kamativi Dump assessment and minerals extraction feasibilities. Commission production

b) Surface bulk mining and Spodumene Concentrator plant commissioning.

c) An exploration program for Lutope and Kapata Claims, essentially encompasses 4 (four) phases broadly described as Phase 1 - desk top and reconnaissance site work, Phase 2 - target generation and drilling. Phase 3 - ore body delineation and Ore Reserve modelling, together with metallurgical test work. Phase 4 – Pilot mining and production commissioning.

d) Bankable Feasibility Studies, the development of high level method of mining and full project viability - a low-grade, high-tonnage deposit which is amenable to open cast mining. Mining project implementation.

e) Provide supportive mine infrastructure and services, inclusive of water, power, communications and access roads.

f) Lastly,theconstructionofaLithiumCarbonatePlantformineralconcentratesbeneficiation.

g) Local manufacturing of Lithium Ion batteries.

Funding Required At least US$ 260 Million to fund the full project up to mineral beneficiation.

Partnership Proposal Joint Venture partnership with a Shareholding structure: 51% ZMDC: 49% Investor.


* TheTailingdumpatKamativipresentsgreatestpotentialtogenerateandguaranteecashflowwithinshort period of time.

* To ride on current high prices of lithium, tin and tantalite.

* Project has potential for tungsten and rare earths metals extraction as by-products.

Investment Benefits* Rewarding Dividends for shareholders.

* Employment creation, Community socio-economic development.


10

2.2 . COPPER MINES – MHANGURA, ALASKA AND SANYATI

Mineral Copper

Locations

1. Mhangura Copper Mines – 139 Kilometres North-West of Harare

2. Alaska (Lomagundi Smelting and Mining) – 130 Kilometres North-West of Harare

3. Sanyati Volcanic Massive Sulphide Deposits (VMS) – 115 Kilometres South-West of Chinhoyi Town - Sanyati Copper Mines

Ore Reserves and Resources

MineSection/Deposit

Resources & Reserves

Other Notes

Mhangura Copper Mines

Miriam MineProved & Probable 7.21 million tonnes@ 1% Copper

• Deposit has potential of resources of a further 60 million tonnes @ 1% Copper

• Also Au, Ag & Mo mineralization

Alaska (Lomagundi Smelting and Mining)

Shackleton & Angwa Mines

Proven & Probable 200,000 tonnes @ 0.85% Copper

Measured & Indicated 310,000 tonnes @ 0.91% Copper

Also gold, silver and molybdenum mineralisation

Sanyati VMS Deposits

Cu Queen & Cu King Mines

Proven & Probable 14.4 million tonnes @ 2.88% Copper

Indicated 3.52 million tonnes @ 3.5% Copper

Average grades: 1.56% Copper, 1.43% Lead; 1.73% Zinc


Joint Venture partnership at 51%ZMDC and 49% InvestorTo negotiate the Investment terms.

Mining Rights

Total Area – 201,000 Hectares of Exploration Special Grants, broken down as follows:

1. Mhangura Special Grant – 112,000 Hectares

2. Lions Den Special Grant (Alaska - Lomagundi Smelting and Mining) Special Grant – 63,900Ha

3. Sanyati Special Grant – 25,100 Hectares

Documentation Available

1. Geological Reports 3. Historical technical and production records.2. Feasibility Reports

Project Proposal

1. Recapitalization and resuscitation of the three copper mines• Extensive exploration programme• Operationalization of the three copper mines • Designed plant throughput is One Million tonnes per annum• CommissionofanewSmelterandResuscitatetheAlaskaRefinery

2. Development and Growth => Start mining the available proven and probable ore reserve of 17.91 Million tonnes of copper complex ores then grow from there.

Funding Required At least US$350 million required.


Joint Venture, 51%ZMDC and 49% Investor.

To negotiate the Investment terms.


* TheTailingdumpatAlaskaSmelterpresentsthegreatestpotentialtogenerateandguaranteecashflowwithinshort period of time.

* To ride on current high prices of copper

* Sanyati has near surface ore resources and reserves, the sulphides of which are still untapped.

Investment Benefits

• Rewarding Dividends for shareholders.

• Employment creation and rewarding dividends for shareholders.

• Community socio-economic development.

• Significantprofitbasedontheprevailingandattractiveaverageworldmarketpricesforcopperandexpectedprice gains in the future.


11

2.3 SANDAWANA MINE - TANTALITE AND OTHER MINERALS

Mineral Tantalite, tin, lithium, chrome, banded ironstone, gold, fuchsite slate


242 million tonnes of drill indicated tantalite resource, at a grade of 800g/t tantalite, 40% Ta2O3.

Location Sandawana; 100 Kilometres South West of Zvishavane Town, Zimbabwe.

Mining Rights Mining lease area of 3,924 Hectares.

Documentation

Available Geological Reports.

Project Proposal & Funding Required

1 Exploration Programme for Tantalite.2 Mining and Processing of Tantalite. 3 Exploration, Mining and Processing of other minerals.

Partnership Proposal Joint Venture partnership with a Shareholding of 51% ZMDC: 49% Investor.


· The Mine has a unique geological set-up hosting a variety of deposits in the same area.

· TheMilltailingdumpspresentsthegreatestpotentialtogenerateandguaranteecashflowwithinshort period of time.

· Sandawana has near surface ore resources still untapped.

Investment Benefits


• Employment creation and Community socio-economic development.

• Boost to economy and mining industry.


12

INDUSTRIAL MINERALS SECTOR

3


13

3.1 LYNX GRAPHITE MINE

Mineral Graphite

Location 55 kilometres from Karoi Town, Zimbabwe


Reserves 526 828 tonnes @ 20% CarbonResource 940 310 tonnes @ 20% CarbonTotal Resources and Reserves = 1,467, 138 tonnes @ 20% Carbon

Mining Rights

Mining rights area is 570 hectares.

21 Standard Base Metal Blocks with 516 Claims and 35 site blocks (54Ha)

Potential for new peggings for exploration and feasibility.

Documentation

Available

1. Geological Reports.2. Feasibility Reports.3. Business Plan.

Project Proposal

1. Mine Recapitalization.• 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• Increase production to 1000 tons product/month from current 600t.• Aggressive marketing to increase market share.• Productbeneficiationproject.

Funding Required TOTAL US $5million


Graphite Product Uptake.New Technology Arrangements.Open up new and parallel graphite mine project on our separate and clean mining titles, on Joint. Venture partnership. 51%ZMDC and 49% Investor.

Investment Benefits

• Employment creation. • Rewarding Dividends for shareholders.


· Highbeneficiationpotentialintothishighvaluemineralproduct,essentialforhigh-techindustry.

· A going concern that is seeking capital injection to prop up the business.

· Lots of high quality mineral deposits occurring near surface and in the vicinity of the mine.

Investment Benefits

• Rewarding dividends for shareholders.

• Minere-capitalizationandgrowth,beneficiationopportunitiesstilluntapped.




14

3.2 LIMESTONE MINING AND PROCESSING

Mineral Limestone

Location 15 km east of Mberengwa Growth Point, Zimbabwe.


Inferred ore resource of 255.5 million tonnes of limestone at an average grade of 49.5% Calcium Oxide (CaO) and 4.8% Magnesium Oxide (MgO). Limestone Saturation Factor of 265.5 and Silica Ratio of 0.91

These resources are still to be drilled. There is potential to generate an additional 300 million tonnes. At a production rate of 1million tons/year, this gives a LOM value of 255 + 300 years.

Mining Rights 12 Blocks of Mining Claims – Total Area 400 Hectares.

Documentation

Available

1. Geological Reports2. Feasibility Reports

Project Proposal

1. Exploration Programme. Resource upgrading to measured.

2. Mine and Plant Development for Limestone Extraction. Estimated in situ resource value of US$2 billion.

3. Establishment of a Cement Manufacturing Plant.

Funding Required TOTAL US$225million

Partnership Proposal Joint Venture partnership at a Shareholding of 51% ZMDC: 49% Investor.


· Highbeneficiationpotentialforcementmanufacturing.

· High resource potential on surface, a hill.

Investment Benefits


• GreenfieldMinecapitalizationandgrowth,beneficiationopportunitiesuntapped.

• 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.




15

3.3. ASBESTOS MININING AND PROCESSING

Mineral Chrysotile Fibre (Asbestos)

LocationsAt SMM Holdings, comprised of the following mines:1. Gaths Mine in Mashaba, 35 Kilometres West of Masvingo Town, Zimbabwe2. Shabanie Mine, in Zvishavane Town, Zimbabwe. 100km south of Masvingo.


o ProvenandProbableOreReservesare38.539,[email protected]%fibrerepresentingLOMof17yearsatcapacity,150,000tonoffibre/year.

o Inferred resources represents 25 to 30 years of production.

Mining Leases and

Claims

1. Gaths Mine, 4,355 Ha for 3 mining leases, no. 6, 7 and 8 (Gaths, Temeraire and King).

2. Shabani Mine, 3,546 Hectares.

All titles are registered and operated by African Associated Mines (Pvt) Ltd., a 100% subsidiary of SMM Holdings (Pvt) Ltd, which is in turn owned 76% by ZMDC.

Infrastructure & Capacity

Good power and water supplies, access roads are all tarred up to the mines. Shabanie has a rail siding and warehouses.Modernshafts,windingandmillingplants.150,000tonnesperannumofhighqualitychrysotilefibre,95% for ready export markets, 75,000 tonnes from each mine.

Geology• Ultramaficbodies(pearshapedpipeatGathsanddiscretepodsatShabanie)hostedintheMashavaand

Shabanie Greenstone belts.


1. Geological Reports2. Full Feasibility Reports 3. Detailed equipment requirements

Project ProposalProject Capital Funding as follows:• WorkingCapital-DewateringofthefloodedMines.• Mines Recapitalization – Infrastructure repairs and to replace aged and redundant capital equipment.• Resuscitateminingofchrysotilefibre,

Funding Required

A total of $47million Investment funding is required for mines resuscitation is required. $25 million at Shabanie and $22 million at Gaths Mine.The capital funds can come in the form of a loan or equity funding.


Joint Venture partnerships at a Shareholding structure of 51% ZMDC: 49% Investor. To negotiate the Investment terms.


· High ore reserves already available and ready for extraction.· State of the art mining infrastructure and milling plants available at the two mine sites.· Supplyexportmarketwithpremiumlongfibrewhichisingreatdemand.Readilyavailable.international

markets.

Investment Benefits • Rewarding Dividends for shareholders.

• Employment creation, at least 3000 employees. • Employment creation and Community socio-economic development. • Boost to economy and mining industry.


16

Energy MINERALS SECTOR 4


17

4.1 COALBED METHANE GAS MINING AND BENEFICIATION

Mineral Coalbed Methane Gas

Location(a) The Mbungu-Lupane area.

(b) Gwayi – Lupane area..

Resources and Reserves

AnIndicatedCoalbedMethaneresourcehasbeenidentifiedintheKaroosediments,whichnowneedsdetailed investigation and proved for extraction, gas content, permeability and seam thickness.

Mining Rights

· The Mbungu-Lupane area => Special Grant No. 5755, measuring 333,160Ha

· Gwayi – Lupane area => Special Grant No. 5754, measuring 304,705Ha

· All two registered in the name of ZMDC.


Reconnaissance Geological reports are available.

Exploration and Production History

Zimbabwe has a huge resource of untapped CBM gas in the Hwange, Lupane and Gwayi areas. Over the years drilling and desorption tests have been conducted and resources that run into trillions of cubic feet have been discovered. The coals have proved to have good permeability which simply means that the gas is released without the need to induce it (Fracking).

Project Proposal

· Exploration (to determine the occurrence, distribution and quantities of coal bed methane (CBM) in the area);

· Development;

· Production and

· BeneficiationofCoalbedMethaneGas,togeneratepower,manufacturefertilizers,petrochemicalsandother by-products.

Funding Required Subject to Feasibility studies.

Partnership ProposalJoint Venture partnership with a Shareholding of 40% ZMDC: 60% Investor for execution of full project as proposed.


· High gas resource potential, and ready for extraction.

· Awiderangeofbeneficiatedproducts.

· High impact to wide industries and to the national economy.

Investment Benefits




• Ready markets for power and fertilizer in the Region.

• Products are all imports substitutions.

Ore Reserve Category Ore tonnes In situ fibre In situ fibre (US$) Life of mine at

& Location (tonnes) capacity (yrs)

Gaths Silky ore reserves 16,718,791 1,252,163 $1.0 billion 17Shabanie Silky ore reserves 19,483,142 923,724 $0.7 billion 12Brittle ore reserves 2,337,276 95,828 $0.1 billion 16Totals 38,539,209 2,271,715 $1.8 billion 17


18

CONTACTS:

DR ING. F. KARONGA

ACTING GENERAL MANAGER

ZIMBABWE MINING DEVELOPMENT CORPORATION,

MMCZ BUILDING, 90 MUTARE ROAD,

MSASA, HARARE,

ZIMBABWE

Telephone : +263 4 487014-20, +263 772 165 525-7 e-mails [email protected]

Mr. S. GAIHAI,

BUSINESS DEVELOPMENT MANAGER,

ZIMBABWE MINING DEVELOPMENT CORPORATION,

MMCZ BUILDING, 90 MUTARE ROAD,

MSASA, HARARE,

ZIMBABWE

Telephone: +263 4 487014-20, +263 772 165 525-7 e-mails: [email protected]

MINING PROJECTS · MINING PROJECTS and OPPORTUNITIES for INVESTMENT 2017 9 2.1...

Documents

Transcript of MINING PROJECTS · MINING PROJECTS and OPPORTUNITIES for INVESTMENT 2017 9 2.1...