The project aims to produce approximately 3 tonnes of gold, worth about $150m as per the current prevailing market prices
Zambia-based mining company, ZCCM Investments has formed a joint venture (JV) with a global mining firm, Array Metals to process gold ore in Mumbwa, Zambia.
The firm has entered into the joint venture agreement through its subsidiary Consolidated Gold Company Zambia (CGCZ).
Array Metals Zambia will hold 35% interest in the joint venture, CGCZ will hold a 65% stake.
CGCZ is a gold processing and trading JV business between Karma Mining Services and Rural Development with 55% stake and ZCCM-IH owing 45%.
ZCCM said that the first stage of the project will see an initial investment of about $2.5m, which will made towards establishing a gold wash plant and other mining machinery to mine and process placer gold raw material.
The mining operations in the Mumbwa project are slated to begin by mid June 2020
The project aims to produce approximately 3 tonnes of gold, worth about $150m as per the current prevailing market prices.
Array Metals Group vice president Chris Rugari said: “We have a two-year study conducted by Array Metals that has an estimated inferred resource by JORC standards of 3 million tonnes of gold ore material containing between 2.5 and 3.5 grams of the precious metal per tonne.
“Overall the total targeted gold production is 7, 500 kgs from this resource, estimated to be worth $400 million at the current prevailing market price.
“He however said that the agreement with CGCZ will first process part of the resource and later ramp up production and processing.”
According to CGCZ CEO Faisal Keer, CGCZ is collaborating with many Zambia’s small-scale gold miners by providing mining technical expertise as well as access to earth moving machinery and gold processing lines to begin quickly and boost their gold production.
Upon receipt of all statutory and regulatory approvals, the mining and processing operations in the Mumbwa project are expected to commence by Mid June 2020.
The resumption comes in the wake of rising gold prices, which reached a seven-year high in April 2020.