AIM-listed resource and development company African Consolidated Resources (ACR) expected to start first-phase production at its Pickstone gold project, in Zimbabwe, in mid-2012.
The Zimbabwe-focused company said the project, although subject to funding, is successfully on route in its development to generate cash through its Pickstone sulphide tailings dump project.
Cash generation could fund subsequent investment in production phases at Pickstone, while affording the company a more aggressive drillout of other assets, said CEO Andrew Cranswick in a statement.
Throughout the project ramp-up and production, the company had remained committed to full compliance with Zimbabwe’s indigenisation regulations.
ACR was confident it would raise funding and would announce its progress within the next quarter, he said.
Meanwhile, the miner reported that 10 700m of drilling, to upgrade current Joint Ore Reserves Committee) compliant resource of one-million troy ounces, had been undertaken at its Gazema gold project.
These results were expected to be released in the first quarter of 2012.
Executive chairperson Roy Tucker said ACR believed the total project resource was likely to be higher and the Gadzema gold project could develop into a major mine.
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“However, the ongoing resource definition would run in parallel with research on the funding of such a large-scale operation, given the internationally perceived political risk to finance opportunities in Zimbabwe,” he added.
More than 35 000m had been drilled in Gadzema and, while awaiting assays from the latest campaign, the company was planning the next resource drill out.
It is hoped the bulk of the future funding would be sourced from the near-term production at Pickstone.
Meanwhile, in line with ACR’s planned Zambian expansion, particularly in the Greater Kasempa iron-oxide/copper/gold district, in north-west Zambia, several asset acquisitions have been concluded while several more were under discussion.
A broad exploration of the highly prospective region was under way.
ACR last Thursday reported a loss of $1,7-million in the six months to September 30 2011.
