Delta Gold Zimbabwe (DGZ) owns the Eureka gold mine, located near Guruve, north of Harare. Eureka has had multiple owners since its discovery but most notably the Australian mining company DGZ, who owned and operated the mine between 1995 and 2003. DGZ was purchased by Dallaglio in April 2018.

 

The in pit reserve is a measured 373,603 thousand ounces and will allow DGZ roughly 5 years of open pit operations at 100,000 tons of ore per month to mine this reserve. A future scoping study will be used to determine at which point to change to underground mining. The potential inferred underground reserve of 560,380 ounces will add approximately 9 years of mining making the current life of mine 14 years. A future drilling program will determine the actual life of mine.

 

Eureka is a brown fields project and the purchase by Dallaglio included a pit already stripped to 35m as well as a significant amount of existing plant requiring refurbishment. The Eureka repair and refurbishment project commenced on 17 January 2020 and is due for completion in July 2021 by which time the team shall have built a state of the art CIL plant capable of processing 100,000 tons per month. The operating plant shall produce between 140-200kg of gold per month and create over 1000 direct and indirect jobs for the local economy.

Discovery and History

First mining began in the area at Eureka in 1906 to 1908.

 

Underground mining at the mine site commenced in 1950. Mineral rights ownership changed hands several times until Phillip Griffiths – active partner (and his brother) of Impinge Mines (Pvt) Ltd acquired the mine.

 

• 1906 to 1908 – claims tributed by the French South African Development Company
• 1918 to 1933 – Ainsle worked the claims
• 1934 to 1943 – R. Francis worked the tenements
• 1950 to 1951 – Southeys worked the claims
• 1961 t0 1965 – F. Ways worked the claims while in 1962 the claims were on tribute to W.G. Kinsey.
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Delta Gold Zimbabwe Operations – (A DGNL Australian Held Company)

Delta Gold Zimbabwe and its exploration arm Masasa Mines P/L signed a Joint venture agreement with Phillip Griffiths of Impinge mines in August 1995 and tenements exploration commenced. Resource estimation was carried out by Resource Services Group (RSG) of Perth, WA. Cotaminous / adjacent gold tenements held by the Guruve Mining Syndicate were also acquired by Delta Gold in August 1996.

 

Eureka gold mine (an open pit operation by DGZ) commenced mining in January 1999 and poured its first gold on target in June 1999. Exploration in the 1998 / 1999 had been successful in delineating significant Au resources / reserves for commercial exploitation. The Eureka gold plant was then one of the world’s first plants where all known gold processing methods had been blended viz gravity recovery, heap leaching and carbon in leach.

 

In 2000 when DGNL left Zimbabwe, they left the Eureka mine assets on care and maintenance under Placer Dome South Africa (PDSA) who carried out a viability study in September 2003.

 

Mmakau Mining and Shaft Sinkers Operation

A consortium of South African business corporations (Shaft Sinkers, Mmakau mining and IDC) in June 2005 subsequently acquired the Eureka mineral and infrastructural assets from Pacer Dome SA (PDSA).

The consortium dewatered the Eureka pit, sank an in-pit 29.5m deep vertical shaft on the 1160m bench, constructed shaft bank infrastructure (within the old pit shell) and continued the old heap leach stack resprays/ back sprays recovering gold. The shaft headframe was fabricated on site. Some mine operations were then curtailed in November 2006 – a cost-cutting move.

 

Open-pit and leach operations continued to February 2008. The assets were then placed on care and maintenance.

 

In October 2008, the consortium hired the Umkwazi group who conducted a scoping study.

 

Further Resources / Reserve Check

Resource / reserve check studies were conducted for Delta Gold Zimbabwe between April 2011 and August 2015 when 22 confirmatory diamond holes (9407m) were drilled by consultants TWP Projects of SA. Bulk samples were collected for diagnostic metallurgical studies and a Preliminary economic assessment (PEA) conducted.

 

Project Vending

Delta Gold Zimbabwe placed the Eureka mineral assets on the market / project vending between 2015 and 2018. Potential investors who assessed the project include Makomo resources, Mwana Africa, Rand Gold, Batanai resources and Vast resources/ Dallaglio.

 

Work by Dallaglio from 2018 to 2020

The mineral and infrastructural assets were subsequently 100% acquired by Dallaglio in 2018, who immediately embarked on a site clean up exercise, worker recruitments, renovations / infrastructure refurbishments and Eureka gold pit dewatering. Dallaglio then obtained Special grant 6510 to consolidate title and drilled 10 potable water boreholes. A traditional mine blessing ceremony was held in 2020 and fast track major construction works embarked on.

EUREKA FAST FACTS

• 1906-1995: various phases of small-scale UG mining (to 4-Lvl; <120m). 12,220oz (380kg) @3.8g/t

 

• 1995-2005: Delta Gold. Open pit, Heap Leach operation. Mined to <50m from surface. 1 millions tons was processed @ 1.78g/t yielding 57,228oz (1,780kg) Closed due to gold price & deteriorating stability. Placed on Care & Maintenance in 2003.

 

• 2005-2018: Shaft-Sinkers (Mmakau Mining/IDC): Deep drilling for UG mining (22 holes; 9,407m). Installation new shaft down to 2-Lvl. Processed old ROM boulders and re-treated the HL. Placed on Care & Maintenance in 2006.

 

• 2018: Dallaglio purchased Delta Gold which owned Eureka Mine from Mmakau Mining and the IDC of South Africa in April

 

• 2018 with CTC approval granted in March 2019.

 

• Total of 46 RC holes drilled, totaling 4,000 metres and a total of 133 diamond core holes totaling 21,000 metres (21kms).

 

• A total Resource (including Inferred) of 16.6 million tons at an average grade of 2.24 g/t, delivering 1,199,080 ounces (to a depth of 650 m).

 

• A total Measured and Indicated Resource of 12.9 million tons at an average grade of 2.29 g/t delivering 945,807 ounces.

 

• In-pit reserves of 0.75g cut off 6,922,883 tonnes at 1.87g/t totaling 12,923 kgs or 415,468 oz down to a pit depth of 230 metres.

 

• The Special Grant has been converted into 53 Mining Blocks and 6 Registered sites

 

• 5 competent persons reports have been done since the 1990s, with the latest one completed in 2012 by TWP Projects. Dallaglio have reviewed and verified these reports.

 

• The extent of the ore body has only been explored to a depth of 650m (open ended beyond 650m)

 

• Eureka will initially be operated as an open-pit mine

 

• The plant will have a processing capacity of 100,000 tons/month.