.gif)
Canadian Zinc Corp, the latest shareholder in London listed Vatukoula Gold Mine plc (VGM), wants to plough more working capital into the mine and bring it to production quickly.
Canadian Zinc announced early this month it had bought 18.25 per cent of VGM for C$4.5million (F$8.3 million), a purchase that makes it one of VGM’s major shareholders.
“Canadian Zinc’s recent purchase of shares has now made it a significant shareholder,” said Canadian Zinc’s chief operating officer Alan Taylor in an interview with FijiLive.
“Vatukoula Mine needs capital funding to upgrade and optimize operations along with continuing with exploration to define further reserves and resources.
“The plan is to raise such funding in order to initiate and carry out a long term mine plan that will carry a viable operation well into the future.”
Taylor said VGM had also successfully raised £3.804 (F12.4 million) through the private placement of additional new shares, an exercise that was completed on March 30.
The fund was earmarked for the purchase of additional refurbished underground dump trucks and underground loaders, more reliable power generating capacity and spare pumping capacity.
“Even though Vatukoula, formerly better known as the Emperor Mine, has been operating for over 70 years there still remains great potential at it continuing for many more years,” Taylor said.
“We believe that the mine can be further optimized with the influx of capital funds being directed to improve operations and management which will in turn prove very beneficial to all parties, including Fiji.”
At a company presentation on the minesite in February, VGM forecasted a production of 42,000 ounces of raw gold this year, increasing to 85,000 ounces next year, to 110,000 ounces annually in 2011 and 2012.
The average gold production at Vatukoula between 1995 and 2005 was 121,000 ounces of gold per annum.
Its valuation of resources at the mine revealed proven & probable reserves at 858,000 ounces, while reserves and resources (JORC) was at 5.15 million ounces of raw gold.
VGM also has mining tenements in Brazil and diamond exploration assets in Africa.
