Pickstone-Peerless gold mine to come on line next year

AIM-listed resources company, African Consolidated Resources has announced that its Pickstone-Peerless gold project near Chegutu, 100 kilometres southwest of Harare, will come on line in the second half of 2015 after it secured funding from a Zimbabwean company to start operations at the gold mine.

AFCR also said that although the deal to acquire Dalny Mine from Falgold Zimbabwe had failed in September after failing to raise the $12 million required, the two companies have been in contact, raising hopes it could be revived if funding is secured.

The London-based miner owns 50 percent of the 584ha Pickstone-Peerless mine, after disposing the other half to Grayfox Investments, a Zimbabwean incorporated company owned by a local consortium, which paid $4 million for the equity and formed a new joint venture, Dallaglio Investments.

Dallaglio will run the mine.

“The current plant design for this joint venture is expected to suffice for the oxide gold cap, which has an estimated life of six years. During this period, expansion of the plant to treat the open cast sulphides, at a rate at least double the monthly volume will be evaluated, including the Dalny Mine option,” AFCR said.

“Mine commissioning is planned for the beginning of H2 2015 with first positive cash flows later in (in the same half).”

In the announcement, it said there was an option for Grayfox to exchange its shareholding in Dallaglio for 288 333 333 shares in AFCR, which if effected would return these assets to 100 percent AFCR ownership subject to subject to indigenisation regulations.-The Source

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