TINASHE MAKICHI
Karo Holdings has invested about US$10m towards drilling and exploration activities despite a 12-month delay due to the Covid-19 pandemic, Business Times has established.
The mining firm drilled 77 holes covering over 7000m in the second phase while studies are being run in parallel. To date, approximately 40 000m of drilling has been completed, generating 22 000 samples, which have all been assayed.
Ground geotechnical and hydrogeological studies are currently underway together with mine and plant design activities as part of the economic studies.
Karo Holdings which is 26.8% owned by platinum miner, Tharisa Plc is establishing an integrated Platinum Group Metals (PGM) mining and refining complex in Zimbabwe. Karo Platinum, an indirect subsidiary of Karo Holdings, has been awarded a Special Grant of over 23 903 ha in the Great Dyke to develop a PGM mining complex.
Significantly, the Karo Platinum subsidiary was awarded both a Special Economic Zone license and a mining license in the last 18 months by government.
“Some US$10m was spent on the project in 2020, even though we experienced what we believe is a 12 month delay due to Covid-19, we still managed to drill some 77 holes covering over 7000m in this second phase while the studies are being run in parallel,” Tharisa head of investor relations and communications Ilja Graulich told Business Times in a written response.
Graulich said the actual funding requirements per each phase of the project could be done once the techno-economic studies have been completed.
At the Karo operation in Zimbabwe, the second phase of drilling has been completed and Tharisa is busy completing the necessary economic studies to fully determine the capital costs required to develop the project, which is common standard in the development of any mining project.
Karo Platinum, an indirect 50% held subsidiary of Karo Holdings applied for and was awarded PGM rights under a special grant under the Zimbabwe Mines and Minerals Act, covering an area of 23 903 hectares.
The License Area is situated on the Great Dyke in the Mashonaland West District of Zimbabwe and this area of land was released by Zimbabwe Platinum Mines from its mining lease area in support of the government of Zimbabwe’s efforts to enable participation by other investors in the platinum mining industry in Zimbabwe.
