Foreign investment fuels Matabeleland gold rush
A surge in foreign investment and exploration activity in Zimbabwe's Matabeleland region is being hailed by mining analysts as a strong vote of confidence in the country's mining sector. This renewed interest is driven by soaring global gold prices and the vast, under-explored greenstone belts that lie beneath Matabeleland's terrain.
Once home to some of Zimbabwe's most productive gold mines, Matabeleland is
reclaiming its strategic importance as foreign-listed firms ramp up exploration
and development. Among the most active players is Canadian-based Pambili Natural
Resources Corporation, which has launched a C$1 million (US$728,359) capital
raise to fast-track its operations across key gold assets in the region. The
funding will be directed towards the Golden Valley A1 claim near Bulawayo and
the London Wall prospect in Gwanda.
Pambili CEO Jon Harris said the company is excited about the commercial
potential of London Wall, a dormant site with historic mining activity. He said
the financing will enable the rehabilitation of the East Shaft and the
surveying of old development drives, with pilot production expected to begin
soon. The project is considered to be high-margin, aided by surface
mineralisation and proximity to road and power infrastructure.
Mining analyst Elizabeth Maphosa said Pambili's approach exemplifies the
strategy required to unlock Zimbabwe's gold potential. She argued that while
global mining majors tend to focus on de-risked assets, bold junior explorers
listed on exchanges like Canada's TSX Venture Exchange are showing the
initiative needed in emerging markets such as Zimbabwe. Maphosa stressed that
exploration is not a luxury but a strategic imperative, with every dollar spent
feeding into future production, job creation, and foreign currency generation.
Caledonia Mining Corporation is another key player deepening its footprint in
Matabeleland. The company announced encouraging results from its deep-level
exploration programme at Blanket Mine in Gwanda, revealing high-grade
mineralisation in both the Blanket and Eroica orebodies. Caledonia CEO Mark
Learmonth said the grades and widths encountered exceed expectations and will
likely result in an expanded mineral resource estimate, which could extend the
mine's operational life. The company has budgeted US$41 million for its 2025
capital programme, allocating the bulk to Blanket Mine and the remainder to
Bilboes and Motapa projects.
Meanwhile, Kavango Resources Plc has reported significant exploration success at its Hillside project in Filabusi. Drilling at the newly named Steenbok Target uncovered 69 significant gold intersections, 41 of which exceeded 1 gram per tonne. Kavango is now preparing for additional exploration, including geotechnical assessments to support future mining operations.
The spike in exploration comes at a time when global gold prices are breaking
records. Gold surged to an all-time high of US$3,500 per ounce in April and has
held steady above US$3,300 in the second quarter. Analysts at Goldman Sachs
project that prices could reach US$3,700 per ounce by the end of the year.
Maphosa said these prices are a game-changer for Zimbabwe, making previously
marginal deposits viable and drawing international interest to long-overlooked
assets.
Despite a slight dip in gold deliveries in May-down 9.48 percent from April due
to a 13 percent decline in small-scale output-year-to-date gold deliveries have
climbed to a record 15.8 tonnes. This represents a 28 percent year-on-year
increase, driven largely by a 52 percent surge in small-scale mining output.
The formalisation of artisanal mining and payment in 100 percent US dollars has
helped drive this growth.
Major producers are also boosting production. Kuvimba Mining House reported 3.6
tonnes for the financial year ending March 2025. Padenga Holdings is targeting
a minimum of 85,000 ounces (2,646 kilograms) for 2025, building on last year's
combined production of 2,638 kilograms from Eureka and Pickstone Mines.
Caledonia is aiming for between 74,000 and 78,000 ounces this year, having
delivered 76,656 ounces in 2024 and 19,106 ounces in the first quarter of 2025.
Zimbabwe's gold mining sector remains a cornerstone of the economy,
contributing over 30 percent to the mining sector's GDP and accounting for 43
percent of mineral export earnings in 2024. The sub-sector also supports more than
1.5 million people through direct and indirect employment.
With exploration accelerating, production rising, and investor interest
intensifying, analysts say Zimbabwe must seize the moment. Timely licensing,
infrastructure investment, and policy support could ensure that the country
capitalises on what is being called a once-in-a-generation opportunity to
solidify its place on the global gold map.
Source: https://bulawayo24.com/