In a statement today, group CE Kalaa Mpinga said the results of the drilling clearly demonstrate the longevity of the deposit.
“These results follow the impressive progress made underground and on the surface plant rehabilitation programme and confirms our belief in the restart of operations at Trojan and bodes well for the future of BNC,” said Mpinga.
This means that the overall grade resource has increased to 1,51 from 1,29 percent.
Bindura’s Nickel resource at Trojan is a massive sulphide ore-body lying along basalts which comprise the mine’s footwall. The Nickel is disseminated within the ultra-mafic host rock. As such, the main type of extractable Nickel is found as interstitial and inter-granular primary magmatic sulphides, consisting of pentlandite, pyrrhotite and possible minor pyrit and rare traces of chalcopyrite.
The Trojan mine has been mined down to the 37 level, although the main shaft has been sunk to the 47 level. Management estimates that there is sufficient resource to support mining for approximately 4,5 years above 37 level (JORC compliant) and then for a further 10 years (non-JORC compliant) between the 37 and 47 levels.
Last year Mwana Africa said it would proceed with the underwriting of its 52,9 percent-owned subsidiary Bindura Nickel Corporation’s (BNC’s) rights issue.
The proceeds of the rights issue would be used to fund the restart of BNC’s Trojan nickel mine, in Zimbabwe.
Mwana said in a statement that further funding would be required in about a year’s time to provide sufficient working capital to take the project to a “cash-flow positive” state.
The company reported that it would continue the underwriting process, as BNC had reached resolution regarding settlement with its creditors and staff, as well as on a retrenchment package for staff not required for the restart of the mine.
Mwana would invest US$21-million in BNC through the rights issue.
BNC shareholders approved the rights issue at an extraordinary general meeting held in Zimbabwe’s capital, Harare, at the end of June.
Mwana said the BNC rights issue and a separate BNC creditors and staff placing would be closed over the next few weeks.
“I cannot overstate the significance of this step for Mwana, for BNC and for Zimbabwe…I now look forward to working together with all stakeholders on the restart of BNC’s Trojan nickel mine,” CE Kalaa Mpinga said last year.
Post published in: Business