Namoya Mining SA (“Namoya”) was constructed in 2014 and went into commercial production in 2015 with an annual production capacity of 120,000 oz Au. At Namoya there is a high mineral resource base with the opportunity to convert in-pit inferred resources into reserves, with a high conversion rate. Namoya is fortunate to have operating flexibility with multi-deposits and many local options in the future relative to power. (eg. Magembe Hydro Power Project). In 2019, Namoya plans to study a potential upgrade of the existing carbon-In-leach (“CIL”) and heap leach operation, converting it into a full-blown CIL plant enhancing mine optimization initiatives which target improving production and reducing costs.
At Namoya, there is ideal topography for expansion and exploration projects which will be a focus for the second half of 2019.
Reserves & Resources 2018
PROVEN & PROBABLE
1.17 M oz Au;
20.51Mt @ 1.77 g/t
MEASURED & INDICATED
1.70 M oz Au;
35.43Mt @ 1.49 g/t
17.85 Mt @ 1.49 g/t
Discovery of Namoya Summit Hanging Wall zone & Bulawayo deposit (both drill tested)
Open-ended along strike and down dip
Nine years based on reserves, 10+ years based on known resources
At Namoya we have identified opportunities to undertake infill drilling to convert inferred resources to indicated resources. In 2019, we will commence an infill & strike extension drilling program designed at adding oxide resources at Namoya Summit and Bulawayo.
The current focus will be on shallow RC & DD drilling resource within the mine footprint targeting additional oxide resource for the heap leach plant in the first half of 2019. We will then commence delineation drilling of the other targets generated in the second half of 2019.
History of Namoya Gold Deposit
Alluvial deposits of gold were first discovered at Namoya in 1930 and mined between 1931 and 1947. Primary gold was also discovered during this period and underground mining commenced on the Filon ‘B’ deposit in 1947. Further discoveries of primary gold mineralization were made at Mwendamboko, Kakula and Muviringu, where selective mining was carried out. The majority of this mining was based on small-scale underground development along specific mineralized quartz veins or stockwork zones. During the 1950s a small open pit was established on Mt. Mwendamboko.
Mining ceased in 1961, although there remained substantial un-mined resources in the various deposits plus several other untested mineralized targets. Limited regional and strike exploration appears to have been conducted since 1961. Total historical production at Namoya has been estimated at 278,000 ounces of gold, although it is most likely substantially higher.
The mineralization at Namoya is structurally controlled by a 2.5 km, NW-SE trending shear zone within sericite schists, which hosts a series of quartz ‘stockwork’ deposits. The auriferous vein systems outcrop at the summits of Mt. Mwendamboko, Mt. Namoya, Mt. Kakula, and Mt. Muviringu. Mineralized ‘stockwork’ outcrops have also been located on eight other hills in the general area.