London, England — 10 October 2013 – Pan-African, multi-commodity resources company Mwana Africa has unveiled an independent assessment of its Zimbabwe nickel operations that provides a significant uplift to the resource, and vindicates the firm’s decision to move to higher grade mining slightly earlier than first forecast.
Compiled by SRK Consulting, the document reviews the entire business plan of the Bindura Nickel Corporation (BNC) for the re-start of its Trojan mine, reports allAfrica.com.
The competent person’s report points to proven and probable reserves of almost 3.2Mt at an average grade of 1.04% of the metal for 32,975t of nickel. This is a 28% increase on the previous estimates.
The operation started with throughput of 68,000t of ore in July, rising to 78,000 the following month, with the business plan stating output would be between 63,000 and 73,000tpm for the 10-year life of mine.
This should ensure that Bindura is a far stronger contributor to the Mwana group than had been previously predicted.
BNC and the Freda Rebecca Gold Mine will be the two major cash and profit generators for the group as it moves forward.
The third major asset is the 3Moz Zani Kodo gold deposit in the Democratic Republic of Congo.
It has been a difficult few months for Mwana which, in common with other mining juniors, has struggled to finance its operations.
However, according to new chairman Mark Wellesley-Wood, the business is out of ‘financial distress’ after the recent two-part fund-raiser, which brought in US$6 million.
In an effort to make its scarce financial resources go further, Mwana has made significant cost savings and it is almost halfway to achieving an annual total of US$1 million.
Management’s focus going forward will be on a smaller number of core assets from a portfolio that spans gold, nickel copper, diamonds and magnesium in four African countries
Source: allAfrica.com. For more information, click here.