History

In October 2002, Metallon (formerly known as Metgold Limited) acquired a portfolio of mineral assets from a holding subsidiary of Lonmin plc known as Independence Mining (Private) Limited.

The portfolio of mineral assets in Zimbabwe comprises of four mining properties and two exploration properties located within a significant land package (954.43km2). The mining properties comprise four separate underground gold mines: How, Shamva, Redwing and Mazowe; each serviced by its own dedicated processing facilities and accompanying infrastructure. There is significant exploration potential at each mine.

From acquisition of the assets in 2002 and until 2006, gold production steadily increased. Production peaked in 2005 at approximately 156,000oz and Metallon was Zimbabwe’s biggest gold producer.

However, due to political unrest and hyper-inflation in 2007, mining activities in Zimbabwe ceased and all mines were placed on care and maintenance. In 2009, mining activities recommenced, with many of the mines requiring rehabilitation and production is ramping up to installed capacity. In 2016 gold production was 94,212 ounces and production in 2017 is anticipated to be 115,000 ounces. This increase in production will come from improving efficiencies at each current mining operation, ramping up mining at Redwing Mine, the construction of an additional processing plant at Mazowe Mine and further on-mine expansion at each mine. Looking ahead the Company's strategy is to produce 500,000 ounces per annum in five years through expansion plans at all mines and through an acquisition strategy across Africa.

Metallon is also pursuing a focused expansion strategy throughout Africa. The Company is in the process of securing prospective brownfield assets and mineral rights within the Lake Victoria gold fields region in Tanzania and is interested in exploration properties in the Maniema province near Bukavu, in the Democratic Republic of Congo. Metallon’s dedicated exploration team is also studying further properties in Southern and Western Africa.

History