Zimbabwe: Canadian Firm Moves to Acquire 75 Percent Stake in Zim’s Gold Mine

CANADIAN based gold exploration and development company, Zephyr Minerals Ltd, is planning to acquire 75% stake in Zimbabwe’s Manicaland-based Chikanga Gold Mine in a deal that is pending due diligence in the coming fortnight.

If the deal sails through, Zephyr will acquire 75% of the 40 hectares of the mine from Hiltouch Investments (Pvt) Limited.

They have since entered into an option agreement which is an arrangement whereby a prospective buyer enters into a contract with a landowner for the right to buy their land or property by paying the landowner a sum of money as an option fee.

Loren Komperdo, president and CEO Zephyr vowed to tap into the underground potential of the mine and the low risk profile of the mine.

“We are very excited about the potential of the Chikonga Mine property. This proven gold producer with over eight years of small scale mining has never been drilled except for one 41,4 meters core hole drilled in 1975.

“The current shallow mine workings have barely scratched the surface of this property. Zephyr sees Chikanga as a low-risk exploration prospect. We know the gold is there. The questions are: how rich is it; will the gold distribution support potential open pitting; and how big is it?”

The development comes at a time when Zimbabwe has been implementing economic reforms as work around stabilising the local currency continues to progress prompting some international investors to settle for the Southern Africa nation as an investment option.

The Chikanga Mine is a small scale mine with 12 to 14 small, shallow shafts on multiple echelon, east-west trending, steeply dipping shear zones comprised of siliceous mica schist and silicified andesite typically hosting bands of fine grained grey and black quartz with disseminated pyrrhotite, pyrite, arsenopyrite, chalcopyrite and gold.

Current information indicates the Chikanga Mine, with the exception of a single 41,4-meter hole, has not been previously core drilled which presents an excellent discovery opportunity beneath current mine workings.

“The property will be assessed for both its open pit and scaled up underground potential of the multiple shear zones. In addition, historical reports suggest potential for gold mineralisation in the shear zone wall rocks.

“An underground winze developed in 1974 intersected “… a strong wide band of pale grey rock … it contained no quartz or visible sulphides and assayed only 1,0 g/t.”* At the time, only one reef was being mined at the No.1 Shaft versus the multiple reefs at present,” added Zephyr.

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