African Consolidated Resources (ACR), an AIM-listed mining company with gold, platinum and diamonds interests in Zimbabwe, has committed funds raised from a recent private placement towards its priority exploration and development projects.
For the half-year to September 30, ACR raised $700 000 through a private placement of 5,3 million ordinary shares and closed its books with a cash balance of $7,4 million as of November 30.
The resources company is still embroiled in a three-year legal battle with the government of Zimbabwe over the cancellation of its diamond claims in Chiadzwa, in eastern Zimbabwe.
ACR CEO Andrew Cranswick said during the review period the company did some ground consolidation along Gadzema greenstone belt in Chegutu, the company’s priority project.
He said the miner also did modelling of the Blue Rock ore body and its extensions in the same area.
As a result, the resources company reported it posted a loss of $1,8 million, as cost accumulation increased.
“We continue to invest heavily in the development of our portfolio assets,” Cranswick said.
Cranswick said the company would also focus on two other projects in Chegutu, the Gadzema Gold belt project and Pickstone-Peerless Gold project.
The company believes the projects have an open pittable gold resource of approximately 2 million ounces.
“We have made solid progress across our portfolio of assets during the period, utilising our first-mover advantage in Zimbabwe and technical capabilities to develop our diverse range of projects,” Cranswick said.
“Our work programme continues to bear fruit for our non-gold assets, with various drilling field and laboratory work conducted across our project portfolio. This work has included the sampling and detailed mapping at Horseshoe nickel project.”
He added that a diamond drill programme at Chishanya phosphate project had delineated encouraging phosphate grades at depth and initial mineralogy test.
He said ACR’s Nkombwa Hill project in Zambia was progressing well on a joint venture agreement with Rare Earth International (REI) for the exploration of rare earth minerals.
REI has pledged to spend $750 000 on the project to define an initial inferred resource in exchange for a 30% equity interest in the Nkombwa Hill project.
“Due to our primarily Zimbabwean project portfolio, we continue to monitor the political and economic situation in the country with keen interest and remain committed to developing our assets in a transparent manner through, which all stakeholders will benefit,” said Cranswick.