Pambili Natural Resources Corporation has signed a 12-month agreement with Long Strike Investments to acquire 21 gold claims in Gwanda, Matabeleland South.
This deal is part of Pambili’s strategy to take advantage of Zimbabwe’s growing gold sector, which is expected to generate US$4 billion annually starting next year. This growth is fueled by new investments, reopening of mines, and expansion projects.
Several gold mines in Zimbabwe are already back in operation, including Eureka Gold Mine in Guruve and Pickstone Peerless in Chegutu. Additionally, Shamva Gold Mine, operated by Kuvimba Mining House (KMH), is ramping up production and seeking US$150 million to improve its facilities.
Zimbabwe currently generates around US$3 billion a year from gold exports. In 2023, the country produced 30.1 tonnes of gold, down from 35.3 tonnes in 2022. The government aims for 35 tonnes in 2024, with 28.2 tonnes produced by October.
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Pambili, which owns Golden Valley Mine in Bulawayo, is excited about acquiring the 21 gold claims, which cover 173 hectares and include the London Wall and Jessie mines. Long Strike has also applied for extensions to the claims, adding another 547.8 hectares. If the option is exercised, the acquisition will cost US$1 million, paid in cash and Pambili shares, subject to approval by the Toronto Venture Exchange.
As part of the deal, Pambili will have the right to begin mining at London Wall by processing tailings and sands, with plans to move to underground mining. The company aims to bring at least one mine into production during the option period.
Pambili’s CEO, Jon Harris, sees this as a major step for the company to become a significant gold producer in Zimbabwe. The immediate plan is to refurbish the leach tanks at London Wall and begin reprocessing gold tailings. The company will also assess the underground operations and set up a new crushing and milling plant near the East Shaft, which was recently operational and in good condition.
