By Scoop Reporter
THE Zambia Consolidated Copper Mines- Investments Holdings (ZCCM-IH) says it entered into a joint venture partnership through its subsidiary Consolidated Gold Company Zambia (CGCZ), with Array Metals, a global mining firm to process gold ore in Mumbwa, west of Lusaka.
Array Metals Group vice president Chris Rugari said the company’s overall total of targeted gold production was 7, 500 kilogrammes from this resource, estimated to be worth US $400 million at the current prevailing market price.
“We have a two-year study conducted by Array Metals that has an estimated inferred resource by JORC standards of 3 million tonnes of gold ore material containing between 2.5 and 3.5 grams of the precious metal per tonne.
“As a medium-sized company, we are very excited about this partnership because it gives us an opportunity to work directly with the Government in contributing meaningfully to the development of Mumbwa traditionally known for agriculture, through economic diversification, local participation and job creation”, Mr. Rugari said.
Meanwhile, ZCCM-IH Chief Executive Officer Mabvuto Chipata said that ZCCM-IH’s strategic drive to harness the gold potential as mandated by Government from areas with recorded gold occurrences in the country was aimed at contributing to the 40 tonne target, which can only be achieved through such partnerships.
In the JV agreement, CGCZ will hold a 65 percent stake and Array Metals Zambia will have 35 percent in the project, with an initial phase targeted gold production of about 3 tonnes, worth approximately US $150 million at current prevailing market prices.
CGCZ is a gold processing and trading Joint Venture partnership between Karma Mining Services and Rural Development (55 percent) and ZCCM-IH (45 percent).