ZIMBABWEAN gold and diamond miner, RioZim, has agreed terms for the acquisition of troubled Falcon Gold’s Dalny mine which it believes will spearhead the group’s strategy to consolidate gold output and assets in Zimbabwe.
Falcon Gold has found the going tough in Zimbabwe where mining firms routinely complain of high mine fees and exorbitant taxation.
As a result, Falcon put the Dalny on care and maintenance while it focused on its other mine, Golden Quarry, which is also struggling.
RioZim spokesman, Bhekinkosi Nkomo, said “… an agreement has been reached for RioZim to acquire 100%” of the Dalny mine – situated in the gold plush Kadoma district – through Palatial Gold, which is controlled by Falgold”.
The Dalny mine consists of a gold processing plant, equipment, mining claims, and other infrastructure. RioZim has been processing ore from its Cam and Motor mine at Dalny under a lease agreement since March 2015.
“RioZim believes that Dalny Mine Complex has attractive exploration ground with potential for delineating resources for mining,” said Nkomo.
“The acquisition of Palatial Gold is in line with RioZim’s strategic initiative to consolidate gold assets and output … through mergers/acquisitions in order to expand its gold operations,” said Nkomo.
RioZim has reported a 42% jump in output from Zimbabwe for the 2015 year after the Cam and Motor mine contributed 42,328 ounces following its commissioning.
Finer details for the acquisition of Dalny mine have not been disclosed. RioZim also has active diamond mining interests through the Murowa mine which Rio Tinto has exited.
RioZim, which also runs the Sengwa coal mine and the Empress Nickel refinery, is targeting production of about 60,000 ounces of gold going forward.
Zimbabwe is eyeing gold production of about 24 tonnes this year on the back of increased contributions from small scale miners.
