Galane Gold (GG) (Pty) Ltd – the sole gold producer in the country – is expected to commence preparations for underground mining mid next year provided the ongoing feasibility study produces favorable results.
After the feasibility study, underground gold mining is expected to commence in 2015.
In an interview with The Voice Money, Galane Gold General Manager Lawrence Manjengwa said the mining entity is conducting the feasibility study in a bid to find the long-term solution to the depleting resource at its Galane Gold (Pty) Ltd.
“We are doing everything within our power to ensure that we expand the resource base which is fast depleting at Mupane and prolong the mine’s lifespan,” said Manjengwa, adding that a total of US$8.7 million has been budgeted for establishing more gold resources.
Mupane Gold Mining is a 100percent subsidiary of Galane Gold Ltd along with two other companies in Botswana, which are Shashe Mines (Pty) Ltd and Galane Gold Botswana (Pty) Ltd that is listed on the Botswana Stock Exchange.
“The mine has got limited resources but with a lot of potential,” said Manjengwa.
He added that the management only needs to think outside the box in order to get value of the limited resources at this gold producing and exploring entity.
He said the feasibility study on underground mining has just started and is expected to end by next year May.
Manjengwa said resources on the open pit are fast depleting but previous studies have suggested that there is more resources underground.
He said underground mining is an expensive exercise.
However, Manjengwa said the gold producing entity has channeled its resources towards the feasibility study because there is potential in the exercise.
“By next year this time (around May 2014), the ongoing feasibility study would have given us the direction as to where we are going,” said Manjengwa.
Manjengwa is optimistic that underground mining will be profitable for Galane Gold.
This is despite the fact that underground mining is a costly adventure because the resource becomes more valuable as one goes deeper.
“Obviously, it will cost us a fortune. But the good thing is that the grade of the gold improves as you go down,” he said.
Galane Gold is a Canadian TSX Venture exchange listed company, a gold producer and explorer with its operations in the country.
The mine has got a staff complement of about 500 employees employed directly and indirectly through contractors.