JOHANNESBURG (miningweekly.com) – Canada-based gold exploration company Giyani Gold, which listed on the AltX board of the JSE on Wednesday, is aiming to revive Limpopo’s legacy gold mine assets.
The group, which is also listed on the TSX-V, could potentially develop the 70-km-long and 15-km-wide Giyani greenstone belt into a multimillion-ounce producing gold operation, said executive chairperson Duane Parnham.
Giyani is currently exploring properties within the belt, formerly called the Sutherland greenstone belt, which historically had five producing mines developed at shallow depths of less than 250 m from the surface and had produced about 450 000 oz of gold.
The group, which indicated that the region were similar in geology to that of 170-million-ounce producing gold operations Hemlo and Timmins, in Canada, had kicked off its $1.2-million 2013 exploration programme on the Rock Island properties within the belt, earlier this year.
Giyani and its black economic-empowerment (BEE) partner Malungani holds 45% of Rock Island, which collectively held the Klein Letaba, Frankie, Birthday, Horseshoe and Louis Moore gold exploration projects, while strategic partner State-owned Limpopo mining company Corridor Mining Resources (CMR) holds 45% and the Giyani Community Trust the remaining 10%.
Giyani believed that the time was right to explore and develop gold assets in South Africa, despite the deflated gold price. The company would implement newer exploration technologies and techniques to increase its chance of succeeding, said Parnham.
The company had also applied for prospecting rights over a large area where 25 past-producing mines once operated within the Giyani belt.
LISTINGS
Meanwhile, the company, which issued 54.6-million shares at first trade on Wednesday, would have cash resources of about C$2.1-million upon listing on the JSE.
Giyani aimed to secure an additional source of capital for the group’s exploration projects and to facilitate BEE investment at a listed company level, while generating awareness of the Giyani’s group and its activities.
The flexibility of the JSE-listed shares would also allow the company to take advantage of potential South African and African acquisition opportunities.
Giyani also planned to list on the Namibian Stock Exchange in the near future, despite having no exploration activities in the country, to position the company for strategic growth in that country.