Currently, it is estimated that, of the gold being produced, 50% is used in jewelry, 40% in investments, and 10% in industry. Zimbabwe has been a gold producer for over two hundred years. According to the World Gold Council, in 2020, Zimbabwe produced 107 tons of gold and was the 7th largest gold producer country. Mashonaland Central was one of the largest gold-producing province in the country, accounting for around 34% of the gold output that year, according to Statista, a market intelligence firm.
Our subsidiary Madziwa Gold owns 132,173 acres of mineral rights for gold distributed in seven projects, six of which are in early stage while one of them, the Gold Belt Project, has been preliminarily researched and is being developed towards a gold mine. The Gold Belt Project is located in the province of Mashonaland Central at the north-west edge of the Ripple Creek mining district, the number one gold-producing region in Zimbabwe.
Madziwa Gold’s 100%-owned Gold Belt Project encompasses 27,733 acres distributed in twelve mineral rights for gold. Approximately 2% of this total area has been studied over fifteen years ago by a prior owner, by drilling superficial terrain layers of saprolite and colluvium and identifying gold in multiple targets. The technical report produced at that time under the local mining department standard estimated gold mineralization of 64,000 ounces in the researched area with an average gold density of 1.54 g/t; the cutoff used in such report was 0.8 g/t.
In 2020, detailed trenching under the supervision of gold geologists was carried out in approximately 2% of the mineral right area encompassing the Gold Belt Project. In 2021, Oxford Geoconsultants, a technical consulting firm with a gold expert that meet the “Qualified Person” criteria under Regulation S-K 1300, released its independent technical report on the project under the NI 43-101 industry format. This report presents Oxford’s estimate of 75,018 ounces of gold in indicated and inferred resources for the 2% of the Gold Belt Project area which was studied.
Madziwa Gold’s technical team has performed additional work in existing shafts located within the 2% of the property that had been previously researched. In 2021, a revised NI 43-101 technical report indicated gold mineralization of 84,000 ounces with a cutoff at 0.8 g/t. RCS, an independent advisory firm, has indicated that the gold deposits at the Gold belt Project are of greenstone belt type. Further work is ongoing at the Gold Belt Project to expand the knowledge of and the measured size of the deposit.