Freda Rebecca Mine
- Full name:
- Freda Rebecca Mine (FRM)
- Mwana interest:
- In April 2005, Mwana Africa purchased 100% interest in FRM from AngloGold Ashanti Limited for US$2.5 million, with an obligation to sell 15% to a local investor. Mwana Africa's share in financial year 2006 remains 100%.
- Geology and history:
- The gold mine is situated near the town of Bindura, some 90km north-east of Harare. As a low-grade underground operation, the mine is highly geared to the gold price. FRM has suffered from the low revenue receipts in Zimbabwe's hyperinflationary environment.
- Mwana Africa also owns highly prospective exploration licences around the operation which may make it possible to extend the life of mine beyond its current 10-year estimate.
- Current status and prospects:
- Progress on the mine's expansion has been slower than expected largely because of the bureaucracy of the Zimbabwe investment approval system, difficulties in sourcing materials and spares, and the shortage of workers with construction skills.
- The fixed gold price and currency exchange conditions since July 2006 have placed severe financial constraints on the operation and a decision to place the mine on care and maintenance has been taken. This will continue until realistic revenues are received.
- Commissioning of the new and refurbished tankage should start late in the second quarter of 2007 with ramp up to 60,000 tonnes of ore per month and 4,000oz of gold per month. Should the current economic conditions persist it will be necessary to adjust the reserves statement.
Reserves and Resources
Freda Rebecca Mine – Resources and Reserves as at December 2006
| Classification of reserves | Tonnage (000t) |
Grade (%) | Gold
(000oz) | | Classification of reserves | Tonnage (000t) |
Grade (%) | Gold
(000oz) |
|---|
| Proven | | | | | Measured | | | |
|---|
| Underground | 2,150 | 2.57 | 178 | | Underground | 9,725 | 2.45 | 766 |
| Surface | 270 | 3.47 | 30 | | Surface | 1,509 | 2.31 | 112 |
| Total | 2,420 | 2.67 | 208 | | Total | 11,234 | 2.43 | 878 |
| | | | | | | | | |
| Probable | | | | | Indicated | | | |
|---|
| Underground | 1,300 | 2.29 | 100 | | Underground | 1,901 | 2.33 | 142 |
| Surface | 444 | 2.81 | 40 | | Surface | 205 | 4.25 | 28 |
| Total | 1,744 | 2.50 | 140 | | Total | 2,106 | 2.52 | 170 |
| Total December 2006 | 4,165 |
2.60 | 348 | | | 13,340 | 2.45 | 1,048 |
| December 2005 | 4,584 | 2,53 | 373 | | | 13,396 | 2,44 | 1,053 |
Note:
- The resources are quoted inclusive of the reserves.
- Ore reserves exclude modification for metallurgical recovery.
- No inferred resource has been quantified.
- The resources are stated at a cut-off grades of 1.5g/t for underground and 0.4g/t for surface mining.
- The planned reblocking and revised stope delineation has not been completed.
