Zimbabwe has a long history of gold production dating back centuries, and gold is estimated to be the longest mining history mineral in the country. The gold industry is characterized by a large greenstone belt that supports many privately owned small coal mines. The 1995 United Nations working paper on gold mining in Zimbabwe is estimated to have more than 5,000 small-scale gold mines. Since the last study, this figure has increased significantly, and the estimate of deposits will certainly exceed 10,000. The economic stagnation of the past decade has caused small-scale gold mining to collapse and further fragmented. Private ownership and distribution of small claims owners.
Many of these mines have great potential, but due to funding considerations, current claim holders consider this an unattractive investment. There are no real constraints on technology; the necessary equipment and skills are available locally; and there are no legal barriers. The current Zimbabwe mining law is probably the simplest law in Africa to obtain all negotiable mineral property rights. Instead, it is a venture capital shortage for equipment purchases and exploration, as well as corporate skills to inhibit the development of small-scale mining.
The traditional method of mining gold claims is to have the owner find and track down his claim and then raise enough funds to purchase mining equipment. If it is difficult to obtain funds, the accused detainees tend to use artificial methods to dig only the richest veins and achieve very low recovery. Once the easy-to-extract gold resources close to the ground are exhausted, the claim will be abandoned. If this is not the case, the claim becomes very dangerous for any further work due to the risk of numerous advertisements and tunnel chasing. vein. This short-term mining method further reduces the life of the mine. Citing the World Gold Analyst Special Report - Zimbabwe [WGR] 2010, "These methods are very inefficient because they do not take into account the geological setting and the potential of the entire deposit. Not only must the scope of the entire deposit be determined. What other technologies are available? Best for the best use of mineral wealth."
The biggest challenge for property rights holders is to provide funding for financing equipment for individual gold claims. In most cases, gold claims do not have a reasonable proven reserve to enable miners to make a profit, so they will not be liable to financiers. The fact that it claims to be scattered means that exploration is arbitrary. Economies of scale have not been achieved because no single miner needs everything from diamond drilling equipment used in exploration to presses or crushers used for gold recycling. This has an unusual dilemma for the exploitation of resources, and in many cases small miners are not prepared to dispose of ownership because it may account for a large portion of their net assets. In addition, the title value they want is in most cases much higher than the value that potential buyers use with the available geological materials. Small miners did not maintain a record of verifiable gold recovery and production. Therefore, the intrinsic value of the title is once again difficult to agree.
View the World Gold Analyst Special Report - The 2010 mining record in Zimbabwe [WGR] will further confirm what we have always believed. Although gold production has been declining during the period from 2006 to 2010 [H1], the delivery of gold by custom processors is still increasing. Gold production in large mines will increase as capacity utilization increases, but the importance of this statistic is that it emphasizes the importance of custom mills in unlocking the value of these small mines. With this in mind and taking into account the challenges of small-scale mining mentioned above, investors should adopt new approaches.
A new approach is to build what we loosely call the Center of Excellence. These hubs are the complete capitalization center for gold miners built in any region. They are not just transporting and crushing ore for small mines. They are a one-stop shop holder and want to unlock the value of what they really sit in the gold mine. The center will have all the capital equipment needed - from exploration to gold recycling, as well as complete service offerings such as miners, geologists and geological intelligence that small miners cannot use alone. The center can use a similar technology cyanide farm to leach tailings. Because of their size, they are better capital motivators. Increased profitability due to the production economy and the fuller use of all mining equipment. The fact that the title was not bought out also means that the model saves money that is usually used to purchase reserves. The center will assist miners in transporting ore for crushing, geological sampling, and recommendations for mine structures and best practices for attacking coral reefs. The center will also lend miners any equipment they need to produce. This will be done without up-front costs, but on a pre-agreed contract basis, where miners pay taxes and royalties to the center when the ore is shattered after gold is recovered. A pre-feasibility study will be conducted prior to the contractual arrangement to ensure that the recovered gold is sufficient to cover royalties. There is no doubt that miners are also facing challenges when trying to sell gold. In many cases, it has become a victim of unethical actors in the industry. The hub can buy any excess gold from the miners in the surrounding area, and because of the collective amount of gold purchased, it will be more conducive to more competitive commodity prices.
The hub will also maintain production and ore delivery history, including gold recycling for all mines in the area. Over time, this information will be used to consolidate small mine clusters in specific areas with the aim of developing exploration and geological information for the area and phasing it into medium-sized mines. A separate joint venture agreement or external acquisition can then be provided to the holders of ownership in these regions. In fact, this integration led to a large mine in one of the countries. The Jumbo mine now owned by Metallon Gold is actually a small group of mines, of which the Jumbo mine is the most prominent. Over time, these clusters have been consolidated, and now Jumbo has left the beginning of its humility.
Our approach is that Hub needs to be capitalized. Quite simply, our approach is this, the hub is actually more than just a milling factory. No. This is a gold mine that outsources labor.
Orignal From: A large picture of the small-scale gold mining industry in Zimbabwe
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