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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 reservesTonnage (000t) Grade (%)Gold
(000oz)
 Classification of reservesTonnage (000t) Grade (%)Gold
(000oz)
Proven    Measured   
Underground2,1502.57178 Underground9,7252.45766
Surface2703.4730 Surface1,5092.31112
Total2,4202.67208 Total11,2342.43878
         
Probable    Indicated   
Underground 1,3002.29100 Underground 1,9012.33142
Surface 4442.8140 Surface 2054.2528
Total1,7442.50140 Total2,1062.52170
Total December 20064,165 2.60348  13,3402.451,048
December 20054,5842,53373  13,3962,441,053

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