JOHANNESBURG (miningweekly.com) – Zimbabwe-focused mineral explorer African Consolidated Resources on Wednesday reported that it has concluded a processing contract with subsidiaries of project manager, TWP, for the production of gold from a sulphide concentrate dump, at the Pickstone project.

The sulphide concentrate dump contains an estimated resource of 28 300 oz gold, or 200 000 t at a 4,4 g/t, and production was planned to start in April or May 2010, to achieve full production by June 2010. An initial throughput of 20 000 t/m of ore was planned.

On the basis of a targeted recovery rate of 73% and allowing for further possible processing losses of up to 10%, the targeted production was expected to be about 1 815 oz/m, which at a gold price of $950/oz would generate revenues of about $1,7-million a month.

Under the terms of the contract, TWP would furnish the major part of the treatment plant, extract gold, and guarantee percentage extraction performance in exchange for a toll-fee per ton.

African Consolidated Resources would incur about $500 000 capital expenditure on the construction of an elution plant and an assay laboratory, and would contribute a further $500 000 towards the construction of the plant.

When the dump has been exhausted, African Consolidated Resources would acquire a 50% interest in the plant, for a nominal consideration.

Under the contract, the gold bearing material would be delivered to African Consolidated Resources for processing at the elution plant, and the company would also be responsible for the sale of the gold.

African Consolidated Resources said in a statement on Wednesday that the contract was a significant step in the company’s development, and would assist the underpinning of its exploration and development expenditure.