MINUTES OF THE NON-CHROME MINERALS MINING STRATEGY 04032020-3rd REV
MINUTES OF THE NON-CHROME MINERALS MINING STRATEGY 04032020-3rd REV
MINUTES OF THE NON-CHROME MINERALS MINING STRATEGY 04032020-3rd REV
1.0 PRESENT:
R MATSHIYA (RM) GENERAL MANAGER-TECHNICAL (CHAIRING)
P. MUSARANDEGA (PM) GENERAL MANAGER (MINING)
F. MAKWARA (FM) MINING SERVICES MANAGER
T. CHISARE (TC) SOUTH DYKE MANAGER
M. CHIGUWARE (MC) MINE PLANNING MANAGER
C. MPALA (CM) SECURITY MANAGER
J CHINHERENDE (JC) LEGAL ADVISOR
N. MPOFU (NM) HEAD FINANCIAL PLANNING AND ANALYSIS
N. NYANDORO (NN) GT –MINING ENGINEER (MINUTING)
PRESENTATION
The Mining Services Manager began by giving a brief background on the occurrence and
discovery of the non-chrome minerals. The plans containing the claims with the non-chrome FM
2.2 minerals were presented to the team for appreciation. For
The non-chrome minerals found in Chromite registered Zimasco claim blocks are: noting
I. Gold in Shurugwi and Valley
II. Red oxide in Shurugwi used (for paints and pharmaceuticals manufacture)
III. Mutorolite in Mutorashanga(used for ornamental purposes in the Eastern world)
The Mining services manager emphasized that there is no geological information on the quantities of
minerals in the claims .Further exploration is required to quantify these occurrences.
DISCUSSION ITEMS
The discussion to mainly focus on the gold mining and processing options which will be then used for
the other non-chrome minerals.
OPTION 1
PROPORSED PROCEDURE PROS CONS
1. Do a closed tender. 1. Less arduous on the company 1. There is need to increase
2. Contractor acquires an EIA certificate for as the company will not undergo surveillance on the areas hence more
processing at own cost. legislative processes (both legal security obligations to avoid pilfering.
and environmental) 2.Strenuous in terms of operations
3. Processing done in Zimasco claim using 2.Liability will lie with the monitoring on Zimasco side
contractor equipment- environmental contractor on both legal and
liability remains with Zimasco. environmental.
OPTION 2
PROPORSED PROCEDURE PROS CONS
Open for bidders and sale the dump. 1. Liability will lie with the 1. Difficult on the contractor since there
Buyer to carry the material out of contractor on both legal and is an added cost of transporting ore
Zimasco claim blocks and process it environmental. outside the claim to process.
elsewhere 2.Shorter period realized on
acquiring cash once exploration
has been done conclusively
OPTION 3
PROPORSED PROCEDURE PROS CONS
Zimasco sets up its own equipment on 1. Zimasco set to benefit more- 1. High initial capital outlay needed
site, process the ore and sells the gold plant to be designed with the to set up process plant. An estimate
(owner operation) thinking that it would be later of the cost pegged at about USD
used to process ores from the 200,000.00 for the set up.
gold bearing claims.
The house agreed that exploration be carried out first before a decision is
reached.
Option 2 and 3 to be then considered on the potential value of the dump
OPTION 1
PROPORSED PROCEDURE PROS CONS
1. Zimasco carries out exploration 1. Reasonable gain on revenue 1. Strenuous process of getting the
on river bed in its claims to in recovered alluvial resource. legislative requirements in place.
understand the resource. 2.Increased security surveillance
2. Applies for SG and do joint 3. Liability will lie with ZIMASCO on
venture mining with ZMDC both legal and environmental.
getting 10% royalty on gross
revenue.
3. Process an EIA for river bed
mining working with JVC
partner.
4. Zimasco recovers its revenue
after sharing with JVC and
ZMDC.
OPTION 2
PROPORSED PROCEDURE PROS CONS
1. Do a closed tender 1. No hustles in getting paperwork 1. Need for increased surveillance in
2. Select a contractor with the for the alluvial mining on the terms of the security requirements
ability to get the necessary riverbeds. and operations monitoring on site.
papers and mine as earliest as 2. Risk of conflict with contractor on
possible. revenue sharing.
3. The Contractor does all the
paperwork including EIA
certificate.
4. Zimasco gets 30% of revenue
after the gold is sold to
Fidelity Printers.
OPTION 3
PROPORSED PROCEDURE PROS CONS
1. Maximum recovery of alluvial 1. High initial Capital outlay
resource and benefit in terms of 2. Increased security manning the
Owner mining and processing
revenue. sites.
3.Zimasco to face difficulties in getting
. paperwork for the alluvial mining on
the riverbeds
The house agreed that option 2 will be considered first when exploration results are finalized.
The Third item discussed was on In-situ Gold in Zimasco Claim blocks
The mining is basically subdivided into 2 subcategories namely small and medium to large scale
operators.
1. Small scale- producing less than 500t ROM ore per month.
Target areas:
Mainly wonderer, Peak and Valley in Zimasco claims where the reef is
narrow, and not suitable for large scale operations
2. Medium to Large Scale- Producing more at least 1000t ROM per month.
Target areas:
3 claim blocks in Wonderer area,
2 claims in Railway block and
2 Claims in Tebekwe- (already allocated to Sinononferrous).
The thrust is on Zimasco getting a percentage of either the slimes or the revenue of the
production
SMALL SCALE
PROPORSED OPTION PROS CONS
OPTION 1 Easier to attract Investment is risky because
contractors there is no sufficient
Zimasco to provide mining geological information with
and processing equipment regards to the gold claims
Option 3 was agreed upon in the meantime but the rates need to be adjusted and
continuously reviewed periodically to maintain
OPTION 3
The house agreed on option 1 for the time being, sharing arrangements to be
finalized.
EXPLORATION
It was agreed that exploration be carried out, focus to start in the high potential areas and then
move to the secondary areas to ascertain the value of the resource in the claims.
The dump to be sampled by augering to come up with a definitive estimate of what value the
tailings contained therein do have. This will then aid decision on coming up with the final
option, an estimate of $5000USD for the process was proposed.
Manzimudhaka and the Valley alluvials to be sampled and quantified in terms of tonnage and
grade an estimate of $5000USD was also proposed for the process for each site.
CLAIMS LEASE RATES
It was resolved that the rates be revised to preserve the monetary value of the payments.
Suggestions were made on how to go forward on the issue. Reviews of the rates to be carried
out periodically (quarterly) and communicated to contractors. This will help to preserve the
value of the claim fees.
STATUTORY REQUIREMENTS.
Mr Chinherende pointed out the need to familiarize and acquaint with Mining law regarding
licenses required when handling gold this would include environmental legislation as well:
CONTRACTS DRAFTING.
Mr Matshiya emphasised that there is need to be explicit in the contracts especially those in
which the contractors will assume the responsibility of carrying out the exploration within
their allocated claims to avoid future turning back on agreed terms.
DATE:
M. CHIGUWARE
RECORDER
DATE:
R. MATSHIYA
CHAIRPERSON