Manica gold repository requires proper investment

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Sibanye expects 20% drop in interim HEPS

“Auroch is possibly two or three years ahead of everybody else in that area. We’ve got the platform, we’ve certainly got the skill set – a high-quality African-based team taking projects through their various phases. It’s now about taking all of these things and putting them into the project,” Dean Cunningham, the managing director of Auroch Minerals, told CNBC Africa.

“Lack of capital flowing into both Mozambique and Zimbabwe over the last two or three decades has resulted in a lot of these gold operations either being defunct or they can’t take them through the various phases.”

Auroch Minerals recently entered into a joint venture agreement with Baobab Resources to expand the Manica Gold Project. 

The project, which is host to approximately 25 kilometers of strike length outcropping on the surface, lies on the Odzi-Mutare Greenstone Belt, which runs through Zimbabwe into western Mozambique.

Pan African Resources, who now own 42 per cent of Manica, designated ownership of the project to Auroch Minerals in 2012.

“I think Pan African looked at it. We relooked at it. We took all the other information, put it all together, did a scoping study and it came out very positive. On the basis of that, we’ve decided to go into near-term production and to take something that’s in a significant gold camp,” Cunningham explained.   

While it is believed that there is three million ounces of gold in that area, Cunningham admitted that it won’t be as big as some of the more well-known gold deposits.

“It’s not going to be significant. It’s not going to be a big play. It makes good money if you do it on a profitability basis and on a margin basis, focus on that and don’t get too big, you can make a lot of money.”