Overview

Geologically the valley has the richest gold production in the world of the greenstone gold formation. Assay results conducted by several groups since 1934 have also shown the viability of the mine. The Mine has a total of 17 blocks of Gold Reef, 7 blocks of Gold Dumps and 1 block of Chrome. These blocks measure approximately 250 hectares with a strike of 2.8 kilometers. The mine has, indicated by diamond drilling and underground development, the potential of 1,200,000 tons of ore at 5 grams/ton, an inferred 1,000,000 tons of ore at 4 grams/ton and actual 500,000 tons at 5.5grams/ton in the mine underground to level 7 elevation. Of the potential of the oniferous area of the proven mine, only 20% has been investigated and mined out of which 2,071,175 tons have been taken and a production of 19,585 kg of gold have been produced refer to Table 1 attached below. It is estimated that the ancient miners removed approximately 10 tons of gold. The mine has about 22 levels of underground mining tunnels that have been mined to level 18 with a potential of ±250kilometers of new development.

The current estimated value proven is U.S. $3.3 Billion which excludes 75% of hydrothermal discovery; however, this includes ore dumps of 141,000 tons/±3.5g that are ready to be milled.

The mine Sands will follow a three phased approach to reach a desired 20kg per week production:

Phase 1:

Increase processing from the current processing to 2500 tons/2.5-3g a month (6.5-±7.5kg).

Phase 2:

At this stage our target will be to increase production from 2500 tons to ±5000 tons (13-±15kg) and building reserves of stock dumps.

Phase 3:

The introduction and commissioning of the new plant with a capacity of 20,000 tons/m which will see produce ± 80kg/m of gold.

Whilst our focus is to maximize production and contribute significantly in the mining industry of Zimbabwe with the potential to create employment in the form of ±550 permanent positions, our main focus is intended to increase revenue by increasing production at the mine which will increase turnover from the current turnover of U.S. $250 000.00 per year to over U.S. $38 400 000.00 ($38.4million) (a production of 80kg/m or 20kg/week or 2.85kg/day or 118.75g/h.

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1

 

 Miner Period      Tons   Kg gold won  Recovery grade
 Selukwe Gold Mining Comp.

1898-1971

734465t

11269

15,34 g/t
 Lonhro

1931-57

1168326t

7363

6,30 g/t
 R Hawkins

1958-67

39000t

               425

1090 g/t
 Nome Gold

1981-91

10800t

210

19,44 g/t
 Gigantic Mines

1993-96

118584t

318

2.68 g/t
 Total

1898-1996

2071175t

19585

9,46 g/t

Table 1: Mine’s Production 1898-1996

Table 2: Mines in the Valley and Production to date

 Mine             Tons          Production     Total Production
 Wonderland Group                      154509                        7.06                     1091 kg
 Yankee Doodie                      206145                          8.0                     1650 kg
 Wolfshall                      103009                      16.43                     1693 kg
 S Bonson Mine                      159703                          6.8                     1086 kg
 Oceana Green                        74884                          7.0                       336 kg
 Bonson                      159703                          4.7                       751 kg
 Moonie Creek                        80503                          4.6                       371 kg
 Knights Mine                      107062                          4.2                       450 kg
 Johannes Luck Mine                         1096                        10.7                         12 kg
 Glen Roza                        37856                        13.0                       493 kg
 Dunraven Mine                      262030                          5.1                     1337 kg
 Total                   1346500                       8 g/t                    9453 kg