CANADA-BASED mining concern Zephyr Minerals has signed an option agreement to purchase up to 80% stake in the MAP Gold Mine property situated in Mashonaland Central.
According to a market report seen by Standardbusiness, MAP Gold Mine is a small-scale hybrid open cast and shallow underground operation.
The proprietor of the mining claim was not made public by the firm.
According to the terms of the agreement, Zephyr can purchase 75% of the Gold Mine Property by paying US$165 000 over two years as well as specific cash payments based on the amount of gold discovered through its fully owned Zimbabwean subsidiary, Sutter Mining.
Sutter will also pay the claim's owner a total of US$250 000 upon the declaration of commercial production in the event that a mine is developed.
Sutter has the option to purchase 20% of the owner's 25% interest, boosting its ownership stake in the asset to 80%.
Until Sutter decides to transfer the claims into a new operating company (Newco), owned as to Sutter 75% (with the option to go to 80%) and the owner 25% (potentially decreased to 20%), the owner is allowed to continue small-scale mining within the permitted parameters from areas currently being mined.
Before exploration can start, a number of requirements must be fulfilled, including purchasing four additional claims listed in the agreement.
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“We are very excited about the potential of the MAP Gold Mine property.
“The extensive area of eluvial gold mining suggests that multiple shear zones may exist on the property,” Loren Komperdo, president and CEO of the Canadian firm said on Friday.
“Many of the larger gold deposits in Zimbabwe are found as secondary shear zones adjacent to major regional faults.
“This model is applicable to the MAP Gold Mine property as a major regional fault is present directly east of us."
The gold find was made in 2020 when farm labourers working the fields observed quartz shards in the soil, which they later sorted and discovered to be gold-bearing.
The property is located within Archean era greenstones.
“Since that time the size of the deposit being worked on has continued to expand with eluvial pits now found over an area of approximately 70 metres by 300 metres. Exploration potential remains open in all directions.
“The area of the workings is approximately 3,5% of the largely eluvium covered claims which totals approximately 65 hectares,” the company said.
Zephyr Minerals is engaged in mineral exploration in Zimbabwe, the United States, and Colorado. Zephyr has been concentrating on mine-permitting activities at its 100% owned Dawson gold project in Colorado.
These activities are now on hold pending the gathering and submission of further water well data and the resolution of various other environmental-related issues.
The extra water wells that are necessary are still in the planning stages; they will be drilled as soon as the necessary money is on hand.
The business intends to reapply for a mining permit at Dawson after gathering the new information.
The company has applied for two exclusive prospecting orders totalling 124 000 hectares in Zimbabwe as part of its effort to develop a portfolio of mining properties,
On a regular basis, Zephyr actively evaluates fresh mineral prospects in Zimbabwe.
In addition to promising, unexplored Archean greenstone belts, Zimbabwe has friendly foreign ownership regulations for mining resources, the firm said.
