(NEWZIMBABWE) ACR reports progress at gold projects

COMMENT - Andrew Cranswick is still wanted in Australia for tax evasion.

ACR reports progress at gold projects
18/12/2011 00:00:00
by Business Reporter

AIM-LISTEDD resource and development company, African Consolidated Resources expects to start first-phase production at its Pickstone gold project, in Zimbabwe, in mid-2012.

The Zimbabwe-focused company said the project, although subject to funding, is successfully on route in its development to generate cash through its Pickstone sulphide tailings dump project.

Cash generation could fund subsequent investment in production phases at Pickstone, while affording the company a more aggressive drillout of other assets, said CEO Andrew Cranswick in a recent statement.

Throughout the project ramp-up and production, the company had remained committed to full compliance with Zimbabwe's indigenisation regulations.

African Consolidated was confident that it would raise funding and would announce its progress within the next quarter, he said.

Meanwhile, the miner reported that 10 700 m of drilling, to upgrade current Joint Ore Reserves Committee- (Jorc-) compliant resource of one-million troy ounces, had been undertaken at its Gazema gold project.

These results were expected to be released in the first quarter of 2012.

Executive chairperson Roy Tucker said African Consolidated believed the total project resource was likely to be higher and the Gadzema gold project could develop into a major mine.

“However, the ongoing resource definition would run in parallel with research on the funding of such a large-scale operation, given the internationally perceived political risk to finance opportunities in Zimbabwe,” he added.

More than 35 000 m had been drilled in Gadzema and, while awaiting assays from the latest campaign, the company was planning the next resource drill out.

It is hoped that the bulk of the future funding would be sourced from the near-term production at Pickstone.

African Consolidated reported a loss of $1.7-million in the six months to September 30, 2011.