Natural resources exploration and development company Pambili Resources announced in August that CEO Jon Harris had met with Matabeleland North provincial mining director Farayi Ngulube, in Bulawayo, to introduce the company and discuss its plans to create local prosperity through capital expansion of Zimbabwe’s Happy Valley mine (HVM).

Harris and HVM-owner Techshed Investments (TSI) CEO Simisani Kupe spoke with Ngulube about Pambili’s earn-in agreement with TSI, and Pambili’s long-term plan in helping to “formalise” small-scale mining in Zimbabwe through selective capital investments.

“Zimbabwe’s mining sector is enjoying unprecedented growth, and we were pleased to have had the opportunity to meet Ngulube and announce our presence in Zimbabwe. Our ambition to support small-scale mining operations — which account for a significant portion of mining activity in the country — was well received by Ngulube,” said Harris.

“A supportive and productive relationship with the Zimbabwean government is key to the corporation as we create prosperity through our ongoing efforts,” he added.

In December 2021, Pambili announced an earn-in agreement and an over subsidised C$515000 nonbrokered private placement for HVM, a producing gold mine near Bulawayo. This was subsequently approved by Canadian TSX Venture Exchange in April this year.

As part of the earn-in agreement, C$200 000 has been allocated to capital expansion of the HVM, while a drilling programme recommended by the National Instrument 43-101 technical report on the HVM is already under way.

Artisanal-scale mining is common across Zimbabwe and plays a significant role in local mining activities.

Pambili’s long-range plan includes identifying small-scale producing gold mines that currently generate cash but lack the capital required to develop their full potential; and pursuing earn-in opportunities to provide these mines with access to the capital hitherto unavailable to them.

This comes in addition to effectively “formalising” small-scale mining operations by investing in industry best practice procedures and processes; and proving Pambili’s business model to the government, thereby gaining continued support for Pambili’s activities.

In July, Zimbabwe President Emmerson Mnangagwa cited the country’s target of $12-billion in earnings for the country’s mining sector by 2023. He also noted Zimbabwe’s 2021 sector earnings of $5.9-billion, as he opened the Mining, Engineering and Transport Conference in Bulawayo.

“The importance of natural resources, and in particular minerals, towards driving sustainable social and economic development cannot be overemphasised,” Mnangagwa said, pledging to maintain a receptive business environment to attract local and global capital and grow established entities.

“I invite more investors to take advantage of the numerous opportunities in areas of exploration, mineral extraction, mineral processing, value addition and beneficiation.

“Plans are in place for the accelerated value addition and beneficiation of minerals such as gold, among other commodities,” Mnangagwa said at the time.

HVM has the installed capacity to process 40 t of rock a day but, owing to capital constraints, is currently processing less than half that amount. Through these capital expansion efforts, Pambili can almost immediately begin earning a return on its investment in the HVM operations.