FELIX NKINKE , Lusaka
GIYANI Gold, a Johannesburg Stock Exchange and Toronto Stock Exchange listed company, has acquired 70 percent interest in two old manganese mines in central Zambia.
The acquisition follows the signing of a Letter of Intent (LOI) with Menzi Battery Metals Pyt to undertake operations of two past-producing high-grade manganese open pit mines.
Giyani Gold executive chairman Duane Parnham said in a statement recently that the Kampumba and Chiwefwe mines operated between 1954 and 1968 produced a total combined estimate of 360,000 tonnes of manganese at grades exceeding 50 percent.
“The mines are close to infrastructure such as gravel roads, railway, power and labour. Geophysical survey data and historical non-NI 13-101 compliant resource estimates indicate significant manganese potential,” he said.
Under the terms of the LOI, Giyani has agreed to make a US$200,000 cash payment and work commitment of US$1 million over five years to Menzi upon completion of due diligence, title review and completion of a definitive agreement.
Mr Parnham said Boswell Projects Incorporated of Canada appointed as project managers for its portfolios assets in southern Africa, will, during the effective period of the LOI, and subsequent agreements, be in-charge.
“Boswell Projects will complete a due diligence review of the assets, and will assess the potential for near-term production from these mines. It will also be providing Giyani with other corporate services,” he said.
He said the acquisition of these high grade manganese open pit mines, in conjunction with Giyani’s manganese projects in Botswana, will expanded the company’s portfolio of manganese assets and continue the advancement strategy to acquire raw materials for the growing battery industry.
Chiwefwe and Kampumba mines are situated in the outskirts of Kabwe and were last operated in 1954 and 1968, respectively. The peak production year was 1962 which recorded 57,000 tons.
Kampumba deposits are in a group of hills that are capped by iron and manganese mineralization, while the Chiwefwe deposits occur in sheet like rubble bodies that lie on top of phyllite, schists and brecciated quartzite.