14th Oct 2009 07:00
14th October 2009
Mwana Africa PLC
Freda Rebecca - First gold production
Mwana Africa PLC ("Mwana" or the "Company") is pleased to announce the first pour of gold following completion of Phase 1 of its refurbishment programme at the Freda Rebecca gold mine in Zimbabwe. 180 ounces of gold doré were produced on 13th October 2009.
Production rates from Phase 1 are forecast to increase to 30,000 ounces of gold per year by the end of 2009. Planning for Phase 2 of the refurbishment programme, which is expected to increase output to in excess of 50,000 ounces of gold per year, is well advanced. This will involve the rehabilitation of the second milling circuit and an increase in the capacity of underground mining equipment.
Kalaa Mpinga, Chief Executive Officer of Mwana said:
"The first gold pour marks a significant milestone in the redevelopment of our assets in Zimbabwe and I would like to pay tribute to the application and dedication of our management team and staff who have made this possible."
This press release is available for download from the Company's website; www.mwanaafrica.com.
Enquiries:
Oliver Baring, Executive Chairman Tel: 020 7654 5580
Mwana Africa PLC
Tom Randell / Anca Spiridon Tel: 020 7653 6620
Merlin
Ryan Gaffney / Mike Jones Tel: 020 7050 6500
Canaccord Adams Limited
Notes for editors
The Freda Rebecca gold mine is located near Bindura, approximately 90 kilometres north-east of Harare.
Exploration, development and production history in the area dates from 1912. The mine and plant complex were developed by Cluff Gold and the first gold pour took place in 1988. In 1996, the mine was acquired by Ashanti Goldfields Zimbabwe which was itself acquired by AngloGold in 2004.
In 2005 Mwana acquired Freda Rebecca from AngloGold. Mwana has committed to sell a 15% stake to a local investor. Freda Rebecca achieved production of 98,000 ounces of gold in 2002, however as a result of the social and economic difficulties in Zimbabwe, output from the mine declined sharply and the mine was placed onto care and maintenance in 2007.
Following the announcement in February 2009 of revised export procedures for gold produced in Zimbabwe, together with the termination of the requirement to submit a proportion of foreign currency earnings to the RBZ for conversion to Zimbabwe dollars, Mwana Africa announced in March 2009 its intention to restart gold production at the Freda Rebecca mine.
A revised mine plan is being developed, based on the optimisation of the resource model at prevailing prices. Mwana Africa believes that potential for expansion of the operation exists through further exploratory and confirmatory drilling at and in the vicinity of the existing mines.
This press release includes 'forward-looking statements'. Words such as 'anticipates', 'expects', 'intends', 'plans', 'forecasts', 'projects', 'budgets', 'believes', 'seeks', 'estimates', 'could', 'might', 'should' and similar expressions identify forward-looking statements. All statements other than statements of historical facts included in this press release, including, without limitation, those regarding Mwana Africa's business strategy and plans and objectives of management for future operations and acquisition opportunities, are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors which could cause the actual results, performance or achievements of Mwana Africa or the markets and economies in which Mwana Africa operates to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements, including, without limitation, political, regulatory and economic factors. Factors that would cause actual results or events to differ from current expectations include, among other things, political risks in the DRC and Zimbabwe, changes to regulations affecting Mwana Africa's activities, and other risks associated with mineral exploration, development and production. Mwana Africa believes that the assumptions inherent in the forward-looking statements are reasonable; however, forward looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein. Mwana Africa does not assume any responsibility to update any of such forward-looking statements, save as required by relevant law or regulatory authority.
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