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Monday, 26th February 2007 (2006 views)

A significant gold mining company has moved to invest in shares in Zimbabwean gold companies, according to reports.

Central African Gold (CAG) has made acquisitions of Falcon Gold and Olympus Gold mines in the country, which it claims is based on the country's ability to provide a "solid skills base" and "good infrastructure" for the mining industry.

Falcon Gold currently operates the Dalny mine in the Chakari district, with an estimated life span of around six years. The company also operates several other mines in Zimbabwe, including the Venice mine, which has the capacity to produce 18,000 tonnes of ore per month.

Olympus also holds strong mines in the country, including Old Nic, one of the oldest gold mines in Matabeleland.

CAG's CEO, Greg Hunter, told Hemscott: "As a team we have a track record of successfully operating in Zimbabwe, a country we believe is geologically exciting, has good infrastructure, a solid skills base and easy access given its proximity to South Africa."

He also heaped praise on the country which is "third behind South Africa and Ghana in total historic gold production" and the ability of mines in the country to be "ramped up in short order" to improve exploration potential.

 

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