Future looks bright for Eureka Gold Mine

by Business Reporter

Developments at the Eureka Gold Mine (EGM) in Guruve are on course for the commissioning scheduled for July 2021, an insider has revealed.

“The reconstruction of the mine is now at 65%. Installations of water pumps, processing unit circuit and boilers are already complete. The major outstanding task is the installation and erection of the ball mill and the plain crusher,” said the source.

The source said the company initially wanted to process low grade ores amounting to 75 000 tonnes before increasing to 100 000 tonnes within six months from the commissioning date. He said depending on the quality of ores, the company was targeting to produce about 130kg of gold per month and increase to 200kg when operating at full capacity.

EGM which is anticipated to be the third largest gold mine from Fredda Rebecca and Banket Mine is expected to employ 200 to 300 workers upon commission with a potential to increase to 400 workers at full capacity.

The source said that extensive exploration done revealed that the mine had mineral resources worth over US$1 billion.

EGM is now owned by Vast Resources through Dallaglo Investment after purchasing the stake from Delta Corporation.

Meanwhile, the source complained about the erratic supply of electricity, which he said was disrupting operations meant to resuscitate the mine. He said the power supply situation was between 65-75% and fears were that the power cuts would cost them potential revenue when production starts, and increase maintenance costs.

The reconstruction of the mine, according to the source, is expected to cost US$60 million.