Galane Gold looks to expand resource base

SHINGIRAI MADONDO
Correspondent | Tuesday May 21, 2013 00:00

 

Addressing a press conference after the Galane Gold flag raising event recently, Manjengwa said the sole gold producer in the country is doing everything within its power to expand the resource base which is fast depleting.

Manjengwa said Galane Gold is currently carrying out a feasibility study on underground mining in a move aimed at prolonging the mine's lifespan and supplementing the depleting resource at Mupane Gold Mine.  Mupane Gold Mining is a 100 percent subsidiary of Galane Gold Ltd along with two other companies in Botswana, Shashe Mines (Pty) Ltd and Galane Gold Botswana (Pty) Ltd which is listed on the Botswana Stock Exchange (BSE). ÒThe mine has limited resources but with a lot of potential,Ó said Manjengwa.

He added that the management only needs to think outside the box in order to get the value of the limited resources at this gold producing and exploring entity. He said the feasibility study on underground mining has just started and is expected to end by next year May. Manjengwa said resources on the open pit are fast depleting but previous studies have suggested that there is more resources underground.

He said underground mining is an expensive exercise. However, Manjengwa said the gold producing entity has channelled its resources towards the feasibility study because there is potential in the exercise.'By next year this time (around May 2014), the ongoing feasibility study would have given us direction as to where we are going,' said Manjengwa. Manjengwa is optimistic that underground mining will be profitable for Galane Gold. This is despite the fact that underground mining is a costly adventure because the resource becomes more valuable as one goes deeper.

'Obviously, it will cost us a fortune. But the good thing is that the grade of the gold improves as you go down,' he said.  After the feasibility study, gold mining is expected to commence in 2015. Between 2012 and this year, Galane Gold is also expected to spend US$8.7 million on establishing more resources to prolong the mine's lifespan.

Galane Gold is a Canadian TSX Venture Exchange listed company, a gold producer and explorer with operations in the country. The mine has a staff complement of about 500 employed directly and indirectly through contractors.