:: Falgold to Spend $250m

Falcon Gold Zimbabwe is planning to spend about $250 million in supporting the ailing Shurugwi open cast mine. Equipment, which include heap leach pads and possibly milling and cyaniding plants would have to be relocated from the closed Venice mine to the open cast mine. Venice mine was closed after exhausting payable ore reserves.

The movement of the equipment would enable Falgold to carry out on site operations like leaching, milling and cyaniding at the Shurugwi open cast operations. Falgold chairman Mr David Marshall described operations at the Shurugwi mine as in a precarious state. The ore transporter at the mine has been unable to source sufficient foreign currency to continue operating due to high maintenance import requirements. "Alternative options are under consideration to ensure continued ore haulage to the Golden Quarry plant," he said. Falgold is currently locked in negotiations with prospective investors with a view to rescue its business interest from a host of problems.

The company, which had been issuing cautionary statements, said the talks had reached an advanced stage. Further announcements would be made once requisite consents have been reached with regulatory authorities. Meanwhile, Falgold has posted a profit after tax of about $27 million in the year ending September this year. Revenue during the year amounted to about $1,4 billion against a total expenditure of about $1,3 billion.