London Wall option agreement (Part 1): An exciting near-term cash flow opportunity

Grab samples taken from an artisanal miner’s production at the West Shaft of the London Mine.

Elements at play: Onsite gold processing infrastructure, large tailings dump, modern technology and 95% gross income retention

CALGARY, Canada (Nov. 27, 2024)—A second mining hub—and more near-term gold production.

Pambili’s option agreement to acquire the London Wall group of gold mines and claims in Matabeleland Province, Zimbabwe is a “major step forward . . . with the potential to deliver on Pambili’s target of becoming a significant gold producer in Zimbabwe,” notes our CEO Jon Harris.

And a “right-to-mine” agreement, signed as part of the option, allows Pambili to commence gold production operations in the very near future, initially by processing tailings and sands.

How?

  • Long Strike Investments (Private) Limited, with whom we’ve signed this option, notes an existing tailings dump of about 100,000 tonnes of material from the 21 gold claims included in the option

  • Recent advances in processing technology indicate the tailings should provide a readily available source of low-cost, near-term revenue

  • Pambili plans to begin assessing potential of this material as soon as possible, through surveying and sampling

  • Another of Pambili’s immediate goals is to rehabilitate the static leach tanks located on the central tailings dump at the London Wall mine, which we believe can be quickly renovated and brought back into production

  • A site near the London Wall mine’s East Shaft will be prepared for the installation of a 20-tonne-per-day crushing and milling plant, which has already been purchased by Long Strike

During the term of this option agreement with Long Strike (12 months, exercisable to 24 months), Pambili will retain 95% of any gross income generated from the claims and mines—with an unencumbered right to mine and develop assets.

“The option to acquire the London Wall group of mines provides Pambili with a potentially significant source of near-term cash flow,” notes Mr. Harris.

Static leach tanks located on the central tailings dump at the London Wall mine, which Pambili believes can be quickly renovated and brought back into production.

Sulphide concentrates: A secondary source of near-term revenue

As it happens, the tailings dump identified by Long Strike also partially covers a second dump of sulphide concentrates, the extent of which is unknown.

Preliminary results indicate the potential of the sulphide concentrates as a second source of near-term revenue:

  • A grab sample of these concentrates, analyzed by a non-accredited local laboratory, yielded a fire assay result of 8.81 g/t of gold, along with a 24-hour bottle roll recovery of 2.77 g/t of gold.

  • Grab samples of ore taken from an artisanal miner’s production by Long Strike geologists, also analyzed by a local non-accredited laboratory, have been highly encouraging—returning grades of up to 24 g/t gold.

Long Strike has applied for contiguous extensions to the claims, totaling 547.8 hectares in addition to the claims included in the option, which cover 173 hectares. Once granted, these extensions will be included in the option.

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London Wall option agreement (Part 2): What’s in the ground, and why it’s so promising

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A golden moment: Bringing Golden Valley’s production plant back online