Alternative Markets-listed Mwana Africa says it has achieved its average monthly gold production target from Freda Rebecca Mine three months ahead of schedule.
The company produced an average of 4 562 ounces in the last quarter to September 30 against a Phase II target of 4 167 ounces per month.
“Quarterly gold production at Freda Rebecca of 13 686 ounces (equivalent to an annualised rate of 54 720 ounces per annum), exceeded the Phase II target annualised production rate of 50 000 ounces,” Mwana said in a statement.
The company said Phase II tonnage build-up was underpinned by successful ramp-up of underground production volumes.
Mwana chief executive officer Kalaa Mpinga said: “I am delighted with the progress at Freda Rebecca in particular, where the Phase II production target was reached well ahead of schedule.
“This success is a result of the commitment and dedication of our management team. Our next objective at Freda Rebecca is to focus on operating efficiency and reliability whilst seeking to optimise plant performance.”
In an update on the expansion projects at the company, Mwana Africa said during the quarter, underground expansion of load and haul capacity progressed well achieving the level of performance necessary to sustain Phase II production volumes.
It said development work and production drilling had enabled the operation to access an additional production block, adding this has had a positive impact on tonnage generation and in sustaining planned millfeed grade.
Freda Rebecca continues to engage the government of Zimbabwe on the issue of indigenisation and management remains optimistic this will be resolved.
On Bindura Nickel Corporation (BNC) Mwana said BNC shareholders last month approved a convertible loan facility of $10m to be provided by Mwana.
“The loan element of the facility has been approved by the Reserve Bank of Zimbabwe. Mwana will be able to exercise the convertible element of the facility only upon a further specific approval by the Reserve Bank of Zimbabwe and the Ministry of Youth Development, Indigenisation and Empowerment. The facility allows Mwana to provide funds for the ongoing working capital requirements at BNC,” the company said.
Mwana said Trojan Mine remains ready to resume production, with all the processes up to tertiary crushers having been commissioned in the previous financial year.