Mayfair Mining & Minerals, Inc. is a publicly held, momentarily unlisted mining and exploration company, operated from the U.K. Its experienced management team, headed by Mr. Clive de Larrabeiti, has designed a business plan to build the company into a successful exploration company with the focus on establishing actual gold production in the foreseeable future. To this effect, Mayfair recently acquired assets in Zimbabwe, formerly held by Conquest Resources (TSXV:CQR), consisting of three former gold producing mines, the Babs Gold Mine, the Beehive Gold Mine, the Piper Moss Mine and the Eva exploration property. The consideration for the acquisition was $2.0 million, payable by 20 million fully paid common shares, thus giving Conquest an approximate interest of 36.4% in the capital of Mayfair.
The Project
The three acquired mines are situated north and northeast of Kwe Kwe within the Midlands Greenstone Belt on the highly prospective Taba Mali Deformation Zone. This major structural feature exceeds 100 km in length and 20 km in width and hosts some of the significant gold producing operations in Zimbabwe.
The Beehive and Babs mines were developed between 1997 and 1998 at a cost of approximately $4.5 million and operated for 9 months before being placed on care and maintenance in early 1999, due to falling gold prices and increasing costs in Zimbabwean currency. In 1998, a 300 tpd processing plant was installed at the Beehive mine site, equipped with a crushing circuit, two parallel ball mills, C.I.P. tanks for leaching and subsequent carbon recovery. Unfortunately, the machinery attracted the attention of thieves and was stolen in the idle and bad years.
The Beehive mine is reported to have produced 15,000 ounces whilst the Babs produced 20,000 ounces. The average grade of the ores from which this production was derived were 6.8g/t and 9.6g/t. The Eva prospect, located 4 km north of the Beehive, has produced minor amounts of gold in the past.
The inferred mineral resources for the Beehive Mine are in excess of 145,000 tonnes at an average grade of 6.8g/t gold, whilst the Babs Mine may initially host 214,650 tonnes at 5g/t gold. The Eva prospect may host 360,000 tonnes grading 2-3g/t.
The Piper Moss Mine has an extensive history going back to the original claim staking in 1912. Old production records show that 163,190 ounces of gold were produced from 518,376 tons of ore. The mine is situated 3km north of the Globe and Phoenix Mine which has produced over 3.2 million ounces of gold from 3.6 million tons, which made it one of the richest gold mines in the then British Commonwealth.
Prospects
The most recent availabe documentation on the acquired properties are summary geological reports that date from respectively October 2000 on the Beehive, Babs and Eva properties and October 1996 on the Piper Moss property. According to these reports, the following observations can be made:
all properties are situated in regions where various finds of mineralization are known to be present, all properties are fully documented and should be read and studied with the general mining and exploration knowledge of today; none of the properties have been subjected to modern exploration techniques; the known reserves seem small but a great potential for further resources has been recognized;
the Eva prospect has the potential to become a significant low grade open pit mining operation;
all mining localities can be brought into production relatively quickly;
it is believed that the Beehive, Eva and Babs mines have the potential to become significant medium-sized gold producing operations whereas the Piper Moss mine has the additional feature of the Moss vein that offers great potential, provided comprehensive and meaningful exploration and development programs are carried out; on all four properties, there are substantial quantities of tailings readily available which should be sampled and investigated for possibilities of early and economically feasible recovery of the gold by vat and/or heap leaching; all properties are easily accessible via main paved roads and short distances on gravel roads and close to railroads and large hydroelectric power lines; within the territories of the company’s licensed areas, there are several indications of mineral occurrences that should be investigated.
First financing
Mayfair Mining & Minerals is seeking an initial financing by Private Placement of Units to a total amount of C$500,000. The price of each Unit offered is C$0.10 and each Unit shall consist of one share of the Company’s restricted Common Stock, par value US$0.001 per share and one warrant to purchase an additional common share for a period of two years from the date of the issue at a subscription price of C$0.15 per Unit. The proceeds of the issue will be used to enable the company to design the first working program to inspect, organize and evaluate theproperties, including a program for pre-exploration, initial sampling and testing, and starting up the refurbishing of the processing plant;
preparing and initiating a listing of the company’s shares on a generally recognized stock exchange or automated quotation system in Canada. Management has already commenced having discussions with some of the suitable choices for listing;
preparing and initiating negotiations to conduct a first major financing in a range of US$5.0 million plus to enable the company to start its first mature exploration and refurbishing program on the acquired properties in Zimbabwe.
The challenge: An opportunity
Management of Mayfair Mining & Minerals is determined to build a future in Zimbabwe, where it has recognized good opportunities to participate in its emerging gold industry. The completed acquisition of the four above described mineral properties should be a sound and prospective base for accomplishing that. The company is also in further advanced discussions on additional mining project acquisitions or joint ventures in other highly prospective gold regions of Zimbabwe.
Zimbabwe may not be the easiest operating environment in the world but considering its history and the process of change that is underway, Zimbabwe is widely and increasingly becoming regarded as one of the more promising mining destinations of Africa.
The rich greenstone belts that were the host of hundreds of smaller gold mines were not left because they were depleted, the mines stopped working due to adverse political and economic circumstances.
Over the last few months, it has become apparent that several good parties are coming to join the new interest in Zimbabwe gold mining. It is too early to speak of a gold rush but I am sure that we will see a lot more of the same happening in the forthcoming future. On a longer term, it is likely to change the nature of the mining industry as we know it from the past.
It will be a time that larger entities will come in and will be created. Consolidation should be the name of the new game, as may be applying a new way of approaching exploration and mining.
The richness of Zimbabwe may not only to be found in deep underground mining, there may be enough gold to be found closer to surface.
New techniques should be used, unconventional thinking should be given room. The resources are there, in ample quantities and qualities.
Mayfair Mining & Minerals has entered the Zimbabwe gold search at an early stage, reflecting management’s vision of what is likely to develop in the Zimbabwean gold mining scene over the next few years.
To make it happen and get the activities off to a good start, the company is seeking a small group of sophisticated and smart investors that are willing to share and support that vision. As I described it on the first page of this report, I feel that Mayfair represents ”A NEW VENTURE ON HISTORICALLY KNOWN RESOURCES”, offering a ”GROUND-FLOOR OPPORTUNITY” that you don’t see coming by every day.
Henk J. Krasenberg European Gold Centre
European Gold Centre
European Gold Centre analyzes and comments on gold, other metals & minerals and international mining and exploration companies in perspective to the rapidly changing world of economics, finance and investments. Through its publications, The Centre informs international investors, both institutional and private, primarily in Europe but also worldwide, who have an interest in natural resources and investing in resource companies.
The Centre also provides assistance to international mining and exploration companies in building and expanding their European investor following and shareholdership.
Henk J. Krasenberg
After my professional career in security analysis, investment advisory, porfolio management and investment banking, I made the decision to concentrate on and specialize in the world of metals, minerals and mining finance. From 1983 to 1992, I have been writing and consulting about gold, other metals and minerals and resource companies.
The depressed metal markets of the early 1990's led me to a temporary shift. I pursued one of my other hobbies and started an art gallery in contemporary abstracts, awaiting a new cycle in metals and mining. That started to come in the early 2000's and I returned to metals and mining in 2002 with the European Gold Centre.
With my GOLDVIEW reports, I have built an extensive institutional investor following in Europe and more of a private investor following in the rest of the world. In 2007, I introduced my MINING IN AFRICA publication, to be followed by MINING IN EUROPE in 2010 and MINING IN MEXICO in 2012.
For more information: www.europeangoldcentre.com
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