Australian mining company Auroch Minerals has announced that its Fair Bride deposit in the central province of Manica holds a million ounces of gold.
Using the Australian code for reporting mineral resources, JORC, the company stated that the deposit has 923,200 ounces of gold, of which 291,600 ounces are measured, 263,300 ounces indicated and 368,300 ounces inferred.
On 19 November the company announced that tests have shown that it can recover between 74 and 78 per cent of the gold. However, the company stated that the process is yet to be optimised and significant improvements in the extraction rate are expected.
With the price of gold hovering around the US$1,200 mark, this makes the gold likely to be recovered worth over US$800 million at today’s prices.
However, the viability of the project will depend on the cost of production. Gold mines around the world have been closing due to a slump in gold prices, down from a peak of US$1,824 in August 2011.
Auroch will need to mine and process 9,546,000 tonnes of material to extract the gold at a rate of three grammes per tonne.
Auroch has two other deposits in Manica, which together with Fair Bride hold an estimated 2.8 million ounces of gold.
Despite these huge reserves, the financial markets remain sceptical with Auroch’s share price languishing at three Australian cents (about 2.58 US cents).https://m.facebook.com/panafricanliberationmovement?_e_pi_=7%2CPAGE_ID10%2C1870716091