Foreign Investment Fuels Matabeleland Gold Rush

Online Reporter 

Sunday News  

June 29, 2025

Nqobile Bhebhe, Zimpapers Business Hub

IN what mining analysts describe as a decisive vote of confidence in Zimbabwe’s mining sector, a wave of foreign-headquartered firms is stepping up gold exploration and development in Matabeleland. 

This surge is fueled by record global bullion prices and the country’s rich but under-explored greenstone belts.

Matabeleland remains one of the country’s most strategically significant regions for gold production, playing a pivotal role in the country’s mining sector. 

Rich in both historical and untapped mineral wealth, the region has increasingly become a focal point for deep-level exploration and investment by both local and foreign firms. 

Its geological formations, particularly the greenstone belts, host some of the most promising gold deposits in Southern Africa. 

The presence of long-standing artisanal mining activity is testament to its gold-bearing potential, while growing interest from foreign-listed firms such as Canada’s Pambili Natural Resources Corporation, Caledonia Mining Corporation and Kavango Resources Plc reflects the region’s rising profile in global exploration circuits.

Among the frontrunners is Pambili, which has announced a C$1 million (US$728 359) capital raise to fast-track activities across its gold assets in Matabeleland. 

This latest funding drive underscores growing investor appetite for Zimbabwe’s minerals, particularly in provinces such as Matabeleland North and Matabeleland South, where historical production and new geological data converge. 

Proceeds from the raise will be directed towards working capital and two key projects: the Golden Valley A1 claim near Bulawayo and the London Wall prospect in Gwanda.

“Given current gold prices and good historic project fundamentals, we are excited about the potential at London Wall,” said Mr Jon Harris, Pambili’s chief executive officer (CEO), in a statement. 

“This financing will allow us to rehabilitate the historic East Shaft and complete the survey of the old development drives. Our aim is to commence pilot production as soon as possible to assess the mine’s commercial viability.”

The London Wall project is viewed as a potentially high-margin producer, benefitting from surface mineralisation and proximity to road and power infrastructure. 

The company holds an acquisition option on the property, which has long been dormant despite hosting legacy mining operations.

Industry experts believe Pambili’s strategy reflects a broader trend of renewed attention to Zimbabwe’s largely under-explored but mineral-rich greenstone formations, especially in Matabeleland, which has historically anchored Zimbabwe’s gold mining footprint.

“What Pambili is doing is textbook strategy,” said Ms Elizabeth Maphosa, a mining sector analyst. 

“You cannot mine what you have not found. Exploration is not a luxury; it is a strategic imperative.” 

She added: “Companies such as Pambili are injecting new life into historical claims, but beyond that, they are strengthening Zimbabwe’s geological confidence. Every dollar spent on exploration feeds into long-term production, employment and foreign currency earnings.”

Ms Maphosa said, while global gold majors often focused on de-risked assets, smaller, foreign explorers, particularly those listed on junior exchanges such as Toronto’s TSX-V, were the ones that were showing boldness in frontier markets like Zimbabwe.

“If the country wants to attain the 40-tonne target and beyond, it must incentivise and de-risk exploration, especially for juniors that carry higher technical risk, but  deliver outsized upside,” she said.

Pambili’s move comes at a time of historic high global gold prices, driven by inflation concerns, geopolitical instability and tightening global supply. 

Prices surged to an all-time high of US$3 500 per ounce (oz) in April and have held firm above US$3 300/oz into the second quarter. 

Analysts at Goldman Sachs project further gains, with forecasts reaching US$3 700/oz by year-end.

“High global gold prices are a game-changer for Zimbabwe,” said Ms Maphosa. 

“They not only boost margins for producers, but also improve project economics for exploration-stage assets that previously sat undeveloped. 

“Projects once considered marginal are now viable and foreign investors are taking notice. This is the time to fast-track licensing, infrastructure and investment support. If we delay, the price cycle will turn, and we will have missed a generational opportunity.”

Other key players

Adding to the momentum in the Matabeleland region is Caledonia, which this week unveiled promising results from its deep-level exploration programme at Blanket Mine in Gwanda. 

The company confirmed that recent drilling had intersected high-grade mineralisation in both the Blanket and Eroica orebodies, exceeding expectations in terms of grade and width.

“Our ongoing drilling campaign continues to demonstrate encouraging results, further improving our confidence in the Blanket Mine mineral resource and pointing to additional future mineral resource growth,” said CEO Mr Mark Learmonth. The company has invested heavily in Blanket’s infrastructure over the past seven years to support deeper mining. 

Crosscuts have been established to access steeply dipping ore zones, and the current campaign is expected to inform a new mineral resource estimate.

The 2025 capital expenditure programme amounts to US$41 million, with US$34,1 million allocated to Blanket and US$6,9 million to Bilboes and Motapa.

“The grades and widths we are seeing from this drilling campaign are as good as and, in some cases, considerably better than results from previous drilling campaigns, which is highly encouraging,” said Mr Learmonth. 

“We anticipate that the positive grades and widths will result in an increased overall mineral resource estimate, which in due course should result in the extension of the existing life of mine.” 

Another mining house, Kavango, has unearthed a series of new significant gold intercepts at its flagship Hillside project in Filabusi, Matabeleland South Province. 

Its latest exploration success stems from drilling at the Prospect 4 target, now renamed Steenbok, where Kavango completed 3 232 metres of diamond drilling.

“Kavango Resources plc, the Southern Africa-focused metals exploration and gold production company, is pleased to announce further significant gold intercepts at the Prospect 4 Steenbok Target in the Hillside Project,” the company said.

Of the eight holes drilled, seven intersected promising gold mineralisation, with 69 significant gold intersections identified using a cut-off grade of 0.7g/t Au. Impressively, 41 of these exceeded 1g/t, pointing to the potential of a commercially viable deposit. Kavango is now preparing to follow up with exploration and drill programmes at Steenbok, including geotechnical drilling to assess rock competency and support possible future mining operations.

The gold mining industry plays an important role in the socio-economic development of the country. It accounts for more than 30 percent of the mining sector’s gross domestic product. Its contribution to mineral exports has grown significantly from 27 percent in 2020 to 43 percent in 2024. The sub-sector also contributes 57 percent of total formal employment in the mining industry, with over 1,5 million people directly and indirectly involved in gold mining activities across the country.

Zimbabwe’s year-to-date gold deliveries have risen to 15,8 tonnes, the highest on record, according to the latest data from Fidelity Gold Refinery. 

This was despite May deliveries decreasing by 9,48 percent to 3 488.0632 kilogrammes (3,49 tonnes) compared to April, driven by a 13 percent drop in small-scale output, while large-scale mining saw a one per cent month-on-month increase. 

Year-on-year, however, total production rose by 28 per cent, with small-scale miners increasing output by 52 per cent from 1,678 tonnes in May 2024, while large-scale saw an 11,34 percent drop, from 1 055.685kg in May 2024 to approximately 935,5kg.

Year-to-date, deliveries of 15,8 tonnes surpassed 11.27 tonnes delivered during the same period in 2024. 

Historical data shows 2023 five-month deliveries at 11,45 tonnes, 2022 at 13,154 tonnes, 2021 at 7 tonnes and 2020 at 9 tonnes, reflecting the upward trend, as the country targets no less than 40 tonnes this year.

For instance, Kuvimba Mining House reported a record 3,6 tonnes in its financial year ending March 2025, reinforcing its role as a leading producer.

Padenga Holdings expects the 2025 production to align with 2024’s, targeting no less than 85 000 ounces (2 646kg), based on the 2024 output of 1 811kg from Eureka Mine and 827kg from Pickstone Mine, totalling 2 638kg.

The firm allocated US$30 million for 2025 to boost production, focusing on its mining subsidiary, Dallaglio Investments. 

Caledonia set a 2025 guidance of 74 000oz -78 000oz (2 300kg-2 426kg), following a 2024 production of 76 656oz and a Q1 2025 output of 19 106oz, a 9,3 percent increase year-on-year.

Much weight, however, is placed on small-scale miners. Small-scale and artisanal miners are crucial, historically contributing over 60 percent of output. 

In May this year, their output decreased by 13 per cent, but year-on-year, it surged by 52 percent, reflecting formalisation efforts and 100 percent US dollar payments.