WRITTEN BY JACK SLATER

Privately owned and incorporated in Zimbabwe. Bilboes Gold’s operations are situated in one of the most lucrative gold-rich areas in the country. With a historic pick up of projects this has given the company an enviable advantage over any competitors. For the December edition we liaised with Chief Executive Officer Victor Gapare, regarding his company and the projects that are putting this company onto the map.

MINING IN ZIMBABWEGold

Since its inception in 1989 Bilboes has produced 234,000

ounces of gold from oxides through open pit mining and a

heap leaching processing method from their existing mines.

The company holds a total of 11,000 hectares in mineral rights and

an additional 198,000 hectares of exploration licence applications

otherwise known as Exclusive Prospecting Orders. A considerable

amount of work has been carried out on claims including exploration,

drilling and metallurgical test work which has confirmed the existence

of a sizeable gold resource.

EmployeesAll staff, at Bilboes Gold undergo the expected training of such

a large and well established company, receiving the necessary

certifications required for gold mining and machine handling. Internal

promotion is important as the company invests heavily into the

experience of their company and understand that it is only by building

good, solid relationships with those who work with and for them that

they will find continued success in the future.

SuppliersSafeguarding the relationships with their suppliers, vendors and

subcontractors is something that has to be a fundamental priority for

everyone in management and Bilboes Gold certainly approaches this

in the best manner possible. Ensuring payment is on time and that the

long term service of their business partners is assured.

BILBOES GOLD LTD

To start with, Bilboes Holdings Limited is a gold focused mining and exploration company owning and operating four mines, namely Isabella, Bubi, When and McCays, these pre-existing mines are all situated in the Bubi Greenzone Belt of Zimbabwe and were acquired from Anglo American Corporation Zimbabwe Limited in 2003 along with most of their gold mineral rights in Zimbabwe.

SMC Limited1 Orange Grove Drive, Highlands, Harare

Tel: (263) 04 443179/80/81, Fax: (263) 04 443182

Current Surface Diamond Core Drilling // LF90D Boart Longyear Drill RigsUnderground Evaluation Drilling // Percussion Drilling

The Current Main FocusesRefurbishments of the existing plant equipment and the heap leach

facilities play a vital role in the near-cash term projects for Bilboes

Gold, these include the treating of oxide materials at the existing

mines. This along with the procurement of additional equipment at

a cost US$8 million (Bilboes Gold Summary Report July 2013). This

investment is expected to pay significant dividends as it is anticipated

to produce approximately 12koz/y of gold by the first quarter 2014.

In the long term, the future of BIlboes Gold lies within the

sulphide resources that underlie the oxide material. Thanks to a US$3

million drilling programme a total JORC resource of 4Moz of gold

was established. (Bilboes Gold Summary Report July 2013). US$4.5

million has been put aside to spend on the project in 2013/2014 on

infill drilling, metallurgical and technical studies to put together a

definitive feasibility study.

To fund the company and the score of feasibility studies a total of

US$17 million was raised at the end of 2012, indicating the strong

reputation and steady focus of Bilboes Gold. Thanks to these raised

funds, Bilboes has the potential to further develop its mineral resource

base by taking advantage of the oxides and sulphides within its mines.

Which leads us to the Matabeleland Oxide Project

SMC Drilling is committed to safely providing its clients

quality drilling services, with 17 years experience, our

approach to meeting our contractual obligations is based

on safety first, sustainable and efficient production based

practices that ensure we complete the job within budget

and on time. Our emphasis on SHE and Environment issues

have culminated in our excellent safety record, making

us the preferred service provider with both local and

multinational mining houses in the region. Our modern

drilling equipment ensures consistent quality core recovery,

minimum downtime, dedicated support and skilled

operators ensure maximum production with minimal waste.

Matabeleland Oxide ProjectThe Matabeleland claims host two EPOs, covering Isabella,

McCays, When and Bubi. Bilboes have already started treating the

oxide material through the existing plant and heap leach facility with

the aim to produce around 11koz/y of gold in order to establish a

positive cash-flow by first quarter 2014 (Bilboes Gold Summary

Report July 2013).

By July 2013, in refurbishing the existing infrastructure, which

including the earthmoving fleet and the process and crushing plant,

Bilboes had invested US$8 million and reached 30% capacity finding

themselves solidly on course to reach 100% by first quarter 2014 with

future potential to increase production due to current exploration in

the transition ore zone.

Matabeleland Sulphide ProjectBeneath the oxide resources lies sulphide material and in here lies

the most ambitious of Bilboes’ plans. The claim areas are underlain

by felsic and mafic schists and greywackes of the Upper and Lower

Bulawayan volcanic units that form part of the Archaean Bubi

Greenstone Belt. This area is transected by three major structural

breaks known as the Peter Pan, Robin Hood and Courtleigh faults

with a number of associated northeast-trending splays which control

the hydrothermal vein and replacement mineralisation.

Gold mineralisation occurs in veins and quartz stockworks

associated with disseminated sulphides, mainly arsenopyrite and

pyrite and between August 2011 and June 2012 Bilboes drilled over

69 diamond drill holes, alongside a total of 123 holes previous drilled

by Anglo American in the 1990s, to a depth of 200-250 m and over

a 6km strike at a campaign cost of US$3 million in order to compile

a resource estimate. Thanks to the results, in October 2012 SRK

estimated a total JORC resource of 4 Moz of gold in sulphides across

the Isabella, McCays and Bubi Mines.

Bilboes is projecting gold production from the Sulphide project

of a minimum of 100koz/y within a five year period. (Bilboes Gold

Summary Report July 2013).

Gold Quarry ProjectWithin the Mutare EPO application, lies the Gold Quarry,

approximately 50km west of Mutare City, the Manicaland properties

were acquired by Bilboes in 2006 from Anglo American. Here there

is potential for both open pit oxide and underground sulphide mining

with silver being a by-product.

The claims are located within the Mutare Greenstone Belt

where gold deposits are scattered throughout the belt within the

surrounding quartz diorite stocks, most of them have high silver

content with associated lead, zinc and nickel. Of the sulphides present

included are galena, chalcopyrite, pyrite, pyrrhotite and arsenopyrite.

BILBOES GOLD LTD

Successful feasibility studies pending, Bilboes is anticipating first

production from Gold Quarry at a rate of 30koz/y within a five year

period.

Future ProjectsInterest in contiguous areas in Matabeleland (Gwizaan and

Isabella) has led to the application for EPOs in those areas. Another

pair of applications in the Midlands Province (Gweru and Lower

Gweru) and in Manicaland (Mutare). Four out of the five EPOs have

already been recommended by the Mining Affairs Board for approval

by the President of Zimbabwe.

US$0.7 million will be spent on reconnaissance work covering

mapping, geochemical, geophysical surveys and trenching over the

next twelve months and desktop studies have commenced with a view

of generating potential targets for further exploration work.

In conclusion, Bilboes Gold is a leader in their field for a reason.

A combination of strong leadership, long standing relationships and

a good reputation have put this company in its current location and

with such fruitful projects approaching in the future we are expecting

great things from Bilboes Gold.

srk consulting zimbabwe28 Kennedy Drive, PO Box GD773, Greendale, HarareTel: +263 (0)4 496 182; Fax: +263 (0)4 490 144; Mobile: +263 (0)774 490 478Email: angilazi@srk.co.zw

Risk Management Services (Pvt) LtdRisk & Insurance Services Consultants

16 Oxford Avenue, Newlands, HarareP.O. Box BW 449 Borrowdale

Tel/Fax: 04-707780/6

RMS

BILBOES GOLD LTD

00263 4 788 151

WWW.BILBOEGOLD.COM

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