KDMC Labour Rat

31 July 2018

 The King’s Daughter Mining Company (Private) Limited

 Modernisation of KDMC and Labour Rationalisation

The King’s Daughter Mining Company (Private) Limited (‘KDMC’), the owner and operator of Redwing Mine, Zimbabwe, would like to announce the modernisation and re-engineering of its operations, along with labour rationalisation.

Due to recent political changes and renewed confidence in Zimbabwe, KDMC is now in a strong position to invest in its gold mining operations. KDMC has a JORC-compliant resource of 2.6 million ounces of gold and there is potential to develop the mine into a greater volume, low cost operation. This programme will be run by Kimbton Chiota, Managing Director, alongside an experienced team at KDMC, who will be engaging with all stakeholders.

KDMC will be undergoing a significant modernisation and investment programme in order to introduce mechanisation and commence large volume mining. A 200,000 tonnes per month plant will be constructed for commissioning in Q1 2020. The mine will be de-watered further and a new shaft constructed to bring hoisting capacity to 200,000 tonnes per month and expose resources below water. New Tailings Storage Facility and infrastructure upgrades will be required.

Current planned investment for these expansion plans is approximately US$150m and this will increase annual production to 200,000 ounces. Bankable feasibility studies are currently underway.

Alongside re-engineering of underground mining, there will be rationalisation of labour. A number of positions will be placed on shifts/short time while reviews of operations are underway. In addition, as a result of the modernisation programme and subsequent mechanisation of operations, KDMC expects to reduce the number of employees. These measures have been implemented in order to reduce costs, increase productivity, and ensure the long-term viability of KDMC for the benefit of all stakeholders.