New York stock exchange listed Caledonia Mining Corporation has spread its wings from its Gwanda-based Blanket mine after agreeing to purchase Maligreen project owned by Pan African Mining (Private) Limited.
Maligreen project is located in the Gweru mining district, Midlands.
The gold producing company is set to acquire the claims from the privately-owned Zimbabwean company for US$4 million.
Commenting on the development, Caledonia Chief Executive Officer, Steve Curtis said the site has great potential to produce decent grades.
“We are delighted to enter into this agreement to purchase the claims over Maligreen, one of the more significant exploration opportunities in Zimbabwe. The property has significant potential and has benefitted from many years of exploration activity.
“Initial evaluation of the inferred mineral resource by our own team and by independent consultants indicates the potential for a significant mining operation with a NI 43-101 compliant inferred mineral resource of almost one million ounces at a grade of 1.88g/t, an acceptable open pit grade,” Curtis said.
He added, “Moreover, our understanding of the grade tonnage curve indicates that the deposit is likely to offer a high level of mining flexibility although much more work is needed in this area. We believe the property also offers significant upside exploration potential
at the north-west extensions to the existing inferred mineral resource and at additional exploration targets in the northern part of the property.”
The total land area of Maligreen is approximately 550 hectares comprising two historic open-pit mining operations which produced approximately 20,000 oz of gold mined from oxides between 2000 and 2002 after which the operation was closed.
Caledonia expects to drill an initial 4,800 meters at an estimated cost of US$1.6 million over a period of 18 to 24 months to improve its understanding of the existing resource and assess the potential for a mining operation.