Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
London-listed African Barrick Gold (LON:ABG) reported increasing confidence in its Nyanzaga project, in Tanzania and said that the project has the potential to become its next mine in the country.
The miner, a unit of the world’s largest gold producer Barrick Gold, now estimates the amount of gold contained in the project at over 4.6 million ounces, up from its previous estimate of over 4 million ounces announced in January.
CEO Greg Hawkins said in a statement the updated modelling also enabled the company to exploit the Nyanzaga project’s Tusker and Kilimani mineralized zones in a single openpit.
“Not only does it add to the overall scale of the deposit, but it further improves the economics with an improved production profile early on in the life of the project,” he said.
Barrick’s Nyanzaga project, which comprises the Tusker and Kilimani mineralised zones, is located within the Sengerema District in the Mwanza region of Tanzania.
Nyanzaga lies on the northeastern flank of the Sukumaland Archaean Greenstone Belt consisting of a granite-greenstone terrain. The Nyanzian greenstone system consists mainly of mafic volcanic rocks and sediments typical of greenstone belts of the central Congo Craton. The rocks are divided into a lower series (primarily basalt, andesite and dacite lavas) and an upper series of sediments (banded iron formation, re- crystallised chert, felsic lavas, tuff, ferruginous chert and mudstone).
