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ACR seeks $16m

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AIM-listed African Consolidated Resources (AFCR) requires $15,7 million to fund the introduction of a four-month preproduction ore stockpile

AIM-listed African Consolidated Resources (AFCR) requires $15,7 million to fund the introduction of a four-month preproduction ore stockpile, for the Pickstone Peerless gold project in Zimbabwe as it moves to improve the grade of ore directed to the processing plant, the company has announced.

Report by Tarisai Mandizha

ACR said the source of funding to minimise recourse to shareholders were at an advanced stage. The search for funding comes as the company announced this week that it had completed a Definitive Feasibility Study (DFS) on the first phase of development at the 3,2 million ounce Pickstone Peerless gold project in Zimbabwe.

AFCR chief executive officer Craig Hutton said the completion of the feasibility study on time and on budget represented a significant achievement in the transformation of AFCR from an exploration company to a mining company.

“I should like to emphasise that the DFS relates to the oxide cap only, just one component of the much larger Pickstone Peerless gold project, and will support the funding of the much larger and higher grade sulphide ore (Phase 2) outlined in the Preliminary Economic Assessment (PEA). Restricting Phase 1 to the oxide cap reduces the Capex (capital expenditure) that would otherwise be necessary and enables us to use plant facilities already in place,” Hutton said.

“We have increased the funding requirement for phase one principally to stockpile ore for four months to maximise early grade.”

Hutton said the scheduling for implementation of Phase 1 remained on track for first production of gold in June 2014.

“Meanwhile, work on the prefeasibility study for Phase 2 is in progress. This study is expected to be completed in September/October 2013 and as a result of this we are targeting a reserve of 1 000 000 ounces at that time,” Hutton said.

The Pickstone Peerless feasibility study showed a maiden reserve estimate of 136 000 ounces at 2,06g per tonne. It is based on a gold price of $1 500 per ounce and a cut-off grade of 0,4g per tonne.

The maiden reserve represents only 17% of the mining inventory reported in the Preliminary Economic Assessment in December 2012.