Nevada-based Casmyn (OTC) will buy a Zimbabwean mining company for US$4.5 million.
The company, Matabeland Minerals, owns several producing gold properties in the southeast. Its principal asset is the Turk gold mine complex, near Bulawayo, which Casmyn plans to upgrade. Current production stands at 10,000 oz. annually.
The company is developing a mine plan that calls for production of 25,000 oz. gold in 1996, 40,000 oz. in 1997 and 100,000 oz. in 1999. The mine life is expected to exceed 10 years at a production cost of US$250 per oz.
Meanwhile, Casmyn is moving into the second phase of drilling at one of its South African gold projects. At Schweizer-Reneke, the company hopes to intersect an extension of the Witwatersrand gold basin. Though the first hole has not yet reached target depth, drilling has begun on the second, which is testing shallower occurrences of gold-bearing reefs.
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