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Foreign investment fuels Matabeleland gold rush
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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.
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 - The Chronicle
