HARARE Mining firm Riozim Limited has declared that they have a variety of mineral resources ready for exploitation and that with additional capital a turn around of the companys fortunes would be achievable in the short term.In a statement to its shareholders presenting the audited results for the year ended 31 December 2010, the Zimbabwe Stock Exchange listed mining concern said the companys exploration work programme was constrained by limited cash flow though underground work produced encouraging results.
Underground development that commenced in the third quarter to prove more reserves and extend the life of Renco mine is producing encouraging results. Limited geological work on the Darwendale chrome deposits confirmed the existence of an inferred eluvial resource in excess of six million tones of ore.
At Kenilworth gold prospect, infill sampling and geophysical work continued to yield encouraging results with targets selected for drilling in 2011, read the statement.
According to the statement, the company recorded an improved operating profit performance of US$9.4 million in the year compared to a loss of US$7.7 million in 2009.
This was due to positive metal stock movements and firmer metal prices in the second half of 2010, read the statement.
However, the results show that gold production fell to 18 000 ounces from 22 762 ounces produced in the previous year, a decline the company blames on severe load shedding by ZESA. Nickel and copper production fell slightly to 8600 tonnes compared to 8800 tonnes in 2009.
Last year in March, the mining concern was granted an Independent Power producer (IPP) licence to build a 2 400-megawatt independent thermal power plant in Gokwe, a development that would make it easier for the company to engage investors.
Post published in: Economy