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Gold May 21, 2020 09:30:36 AM

Zambia Enters Into New Joint Venture Deal for Processing Gold

Paul Ploumis
ScrapMonster Author
According to the terms of the deal, CGCZ will hold a 65%.

Zambia Enters Into New Joint Venture Deal for Processing Gold

SEATTLE (Scrap Monster): ZCCM Investments Holdings (ZCCM-IH)- Zambia’s state mining investment company announced that its subsidiary Consolidated Gold Company Zambia (CGCZ) has entered into a joint venture partnership with mining services company Array Metals to process gold ore from deposits in Mumbwa, west of Lusaka.

According to the terms of the deal, CGCZ will hold a 65%. The remaining 35% stake will be held by Array Metals. The joint venture projects aims to invest approximately $2.5 million in the initial phase of the project, which involves setting up of gold wash plant and other mining equipment. The project aims to produce nearly 3 tonnes of gold, worth around $150 million at current gold price, within the next two years.

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The agreement allows processing of only a part of the deposit. The total gold reserves at the deposit are estimated inferred resource at around 3 million tonnes of gold ore material containing between 2.5 and 3.5 grams of the precious metal per tonne, said Chris Rugari, Vice President, Array Metals Group. The partnership offers an opportunity to work with the Zambian government in contributing to the development of Mumbwa.

The mining and processing operations at the deposit are expected to commence by mid-June this year, subject to necessary statutory and regulatory approvals.

 

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