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Zimbabwe-focussed African Consolidated Resources plc (LSE:AFCR) is to commence a bankable feasibility study (BFS) this month with the aim of achieving a 100,000 ounces a year production capacity from one of its gold projects in the country.
The natural resources explorer announced its plan following a sixfolds increase of its revised JORC-compliant resource estimate at its Pickstone-Peerless gold project, 100 kilometres southwest of the capital, Harare.
Two months ago, the company already stated the Pickstone-Peerless gold project, historically mined by Rio Tinto plc (LSE:RIO), may contain significant higher resource than was previously predicted.
In a statement released today, AFCR said the project now contains about 3.2 million ounces of the precious yellow metal, more than six times as much as the previous estimate of 513,000 ounces.
This puts the total gold reserve estimates to 4.3 million ounces, 1.9 million ounces of which belong to the measured and indicated category, including the Gadzema gold project 18 miles to the north of Pickstone-Peerless.
AFCR emphasised that over half of the new resource belongs to the measured and indicated category, in contrast with the mostly inferred estimates the company held from the 584-hectare gold project.
The company detailed that about 1.5 million ounces can be recovered through open pit mining while the remaining resources can be extracted through underground operations.
New League
“ACR is extremely encouraged by the size and grade potential of Pickstone-Peerless, and is determined to move the project forward through a BFS, which will be commissioned this month,” African Consolidated commented.
The ambitious 100,000 ounces per annum production capacity AFCR hopes to achieve is more than double the current production level of the largest gold mine in Zimbabwe, according to the miner’s Exploration Director, Mike Kellow.
“This takes the project into a new league,” Mr. Kellow said, adding that should the project materialise it will “make a major contribution to employment, infrastructure and community development in the district.”
On the Alternative Investment Market in London, investors welcomed the news making the share price gain as much as 10% to 2.75 pence by 10:30 AM GMT, following the news. Shares were valued at 2.62 pence at 3:30 PM GMT.
Company Spotlight
African Consolidated Resources plc is a diversified natural resources exploration company focussed on Zimbabwe. The company explores gold, nickel, platinum, copper, diamonds, and rock phosphates.
