Latest from
#CGO
's Muchesu site where DMS plant is being assembled, following purchase of 10 new 90t tipper/dump trucks.
Part of the $20M expenditure by the strategic investor…
We are pleased to provide an update on our
#CGO
Lubu Coal Project in Zimbabwe ahead of the scheduled first coking coal production and sales by the end of Q1 2023.
Wash plant arriving at site last Friday.
With the ramp and feed bin now completed and installed, the
#CGO
wash plant is expected to commence processing and producing first washed coal next week.
We are pleased to advise final approvals for export of coal from the Muchesu Project have now been granted by the Minerals Marketing Corporation of Zimbabwe.
#CGO
has now delivered its 𝐟𝐢𝐫𝐬𝐭 𝐜𝐨𝐚𝐥 𝐬𝐚𝐥𝐞𝐬
Our
#CGO
Wirtgen Surface Miner is finishing mining the weathered coal in the initial open pit, before moving into fresh coking coal later this month.
The surface miner has the capacity to mine up to 1,000 tonnes per hour in these coal seams.
The Wirtgen 2200 Surface Miner has arrived at site.
It can mine up to 500t per hour in harder materials and will initially be used to expand the
#CGO
open pit/clear the overburden, before commencing mining of the coking coal seam at a rate of up to 1,000t per hour from
#March23
We are pleased to advise that the production of washed coking coal commenced on Tuesday 23 May 2023 at our
#CGO
flagship Lubu Coking Coal Project in Zimbabwe.
Screening and washing of coal contines, with product being transported to stockpiles.
Next week the weighbridge will be activated enabling the trucks to be weighed pre and post loading of coal, thereby enabling first
#CGO
sales...
President Mnangagwa has arrived at site where he was met by the Vice President and the Minister of Mines, along with senior government and regional officials.
He was welcomed by senior
#CGO
/Monaf executives who provided a private briefing ahead of a scheduled site tour.
The Surface Miner in operation filling up one of our 20 tonne trucks with coking coal before it is delivered to the wash plant and the next truck is moved into position...
#CGO
We are pleased to announce we have entered into a new offtake arrangement with TransOre International FZE for the sale of up to 20,000 tonnes per month of washed coking coal from our
#CGO
flagship Lubu Project in Zimbabwe, known as the Muchesu Project…
Construction of our
#CGO
wash plant is now 75% complete. Upon completion, crushing and screening will also be installed.
Following commissioning and optimisation it is expected to be able to produce 20,000 tonnes of washed coking coal per month.
We are pleased to confirm the installation of the weighbridge at the
#CGO
Muchesu Coal Project was completed last week and is now fully operational.
Below, a short video filmed in July, of the mine's operations :
A hive of activity at Lubu ahead of the delivery of the wash plant and surface miner at end of January before installation and sales at the end of Q1…
#CGO
#Coal
#Zimbabwe
Power connected to the
#CGO
lab and training underway, including CV metres vital checks and crusher start up training ahead of activation of the wash plant.
“This is a landmark moment for Contango. It is no small feat to bring a mine into production and something most junior mining companies never achieve. We are now producing a high-quality coking coal product and very soon will be a revenue generating company”
#CGO
CEO Carl Esprey
We are nearing first sales of coking coal at our
#CGO
coal project at Lubu.
Below, final checks on our Wirtgen 2200SM surface miner before it is delivered to site.
It has a cutting width of 2200mm, ideal for selective mining and can mine approximately 500t per hour of coal.
Construction of a small-scale coke battery has been completed at the Lubu Coal Project in Zimbabwe.
Following completion of the pilot plant in February 2023 CGO has subsequently produced approx 4️⃣ tonnes of coke for delivery to a potential coke partner.
Recently completed grade-control drilling has confirmed the presence of vitrinite banding throughout the Main Seam Upper.
Vitrinite is formed in high grade coals, contributing positively towards coking characteristics.
#CGO
The
#CGO
water storage tank has now been constructed with a 1 million litre capacity.
Pipework to washplant has also been installed and the borehole pumps will be connected shortly.
Inpit screen tests completed as the Surface Miner continues to extract coal.
Screen moved today to it's permanent position by washplant.
Dry and wet washplant runs over the weekend ahead of first
#CGO
washed coal production early next week…
We are pleased to provide a further update on operations at our Lubu coking coal project in Zimbabwe.
Since the last update on 28 March 2023
#CGO
has now completed a number of key activities with regard to commencing production at Lubu :
We are pleased to advise that we have entered into an offtake agreement with AtoZ Investments Ltd, a specialist coal trading company based in South Africa, for the
#CGO
initial coking coal production…
The wash plant site and foundations were prepared in advance.
Expect wash plant site installation over the next 3-4 weeks.
The
#CGO
wash plant expected to be able to produce 20,000t of washed coking coal per month.
Larger static screen in operation. Sorting coal stockpiles into various sizes before delivery to the fully operational washplant.
A new
#CGO
presentation on the Muchesu Coal Project (known previously as Lubu Coal Project) is available on our website at
"…We expect Contango to transition into cash flow towards the end of the current quarter with first sales of coking coal.I reiterate my excitement and enthusiasm for what is in store for Contango over the coming weeks and months…”
#CGO
CEO Carl Esprey
“…Contango Holdings is ready to begin sales…”
#CGO
is pleased to advise an article has been published on the Muchesu Project in
@MiningOnline
following a site visit by William Clarke earlier this quarter.
Over 1,000t of coking coal being extracted and screened for the Multi-National.
Washing, payment and collection expected next week for
#CGO
ahead of final testing and entering into the previously reported larger long-term offtake
This past week the
#CGO
management team has been in Cape Town, Lubu and neighbouring operations meeting with potential strategic partners and offtakers for its coking coal and coke production…
We are pleased to advise the President of Zimbabwe, His Excellency Dr Emmerson Mnangagwa, will be visiting our
#CGO
flagship Lubu Coal Project on 21 July 2023.
He will be joined by a number of senior Ministers and Zimbabwean officials…
First phase of relocation nearing completion
After consultation with the local community predominantly new brick housing has been constructed to replace existing housing (first picture)
All relocations required for
#CGO
mining/processing operations to commence have now happened
“…Bringing our first asset into production is a milestone event for Contango. The resource at Lubu is significant and we are now finally in a position to start to receive the economic benefits…”
#CGO
CEO Carl Esprey
We are pleased to provide an update with respect to developments regarding the thermal coal @ Lubu.
“What was initially a by-product in our coking coal and coke development plan, is now a highly profitable and complementary product”
#CGO
CEO Carl Esprey
Photos from the formal
#CGO
Muchesu Mine Opening Ceremony, and officiated by His Excellency Dr Emmerson Mnangagwa, are available :
His Excellency Dr Emmerson Mnangagwa also gave a presidential address :
We are funded to bring the Lubu coking coal project in Zimbabwe into production end Q1 2022.
We are also advancing the 100% owned Garalo-Ntiela Gold Project in Mali with 2Moz potential.
To find out more about what we do please visit our
#CGO
website :
“We are honoured that his Excellency Dr Emmerson Mnangagwa, President of Zimbabwe, will provide a formal ceremonial opening of Lubu next month. We have a world class resource, in excess of 2bn tonnes of coal, and now in production”
#CGO
CEO Carl Esprey
Contango Holdings Plc, the producing London listed natural resource development company, notes the
#CGO
share price movement and provides the following update regarding corporate activity and an operational update.
#CGO
is pleased to introduce Muchesu Coal, the new local name for the Lubu Coal Project.
Muchesu is the local village in the broader Lubu region and helps to bring both a focus and sense of community to the project.
"We continue to make excellent progress at site as we prepare for imminent first coking coal production and sales. I look forward to providing additional updates over the next few weeks as we transition from developer to producer”
#CGO
CEO Carl Esprey
“We have been in discussion with TransOre for some time and have been impressed by their operations and network. They bring a sizeable logistics operation, which we believe is more aligned with Contango's objectives moving forward…”
#CGO
CEO Carl Esprey
Following completion of the access roads, the site for the
#CGO
washplant has now been cleared ahead of installation.
Once installed these processing facilities will have an initial capacity of 120,000 tonnes of washed coal per annum.
We are pleased to provide this
#CGO
update
✅Civil works & infrastructure upgrades ongoing
✅Mining operations & first production to begin from end of March
✅Discussions with off-takers for both coking coal & coke
✅Wash plant to be installed in Q2 2022
We are pleased to advise that a new
#CGO
corporate presentation on the Muchesu Coal Project (known previously as the Lubu Coal Project) is now available.
The presentation is now available on the Company's website at
...here, at
#CGO
we have commenced construction of the Lubu Coking Coal Project to help meet this shortage of coking coal and in particular coke production.
We are pleased to announce we have appointed Tavira as our new Broker.
The Team at Brandon Hill have moved to Tavira including Oliver Stansfield (Former Brandon Hill CEO) who of course founded
#CGO
We now have funding in place to bring our first asset into production late Q1
We note recent speculation with respect to the offtake with AtoZ Investments Ltd ('AtoZ').
Given the subsequent volatility in the share price,
#CGO
seeks to clarify as follows:
“…These are exciting times for Contango and we remain on track for first sales at the end of the current quarter. I look forward to providing a separate update on ongoing operations at Lubu in the near term…”
#CGO
CEO Carl Esprey
Our
#CGO
CEO Carl Esprey catches up with
@TMSreach
🎙️
“…This is a 30, 40, 50 year, multi-generational project. It’s two billion tons of coal. This is going to be a continual process of optimization and expansion and optimization and expansion…”
In tandem with the ongoing mine construction and development, which remains on track for completion and first coal sales next quarter, the
#CGO
technical team has undertaken further testwork on parts of the Lubu coking coal deposit…
In recent months
#CGO
has received a number of unsolicited approaches from buyers of thermal coal from Africa, Europe and Asia.
In the last 12 months, it is well documented that thermal coal prices have increased dramatically from approximately US$125 per tonne to US$450.
“…The work completed during the period at Garalo has returned exceptional results for
#CGO
far exceeding the internal estimates and expectations we had in place at the time of acquisition…”
"…Contango is now at a real turning point as we make the final preparations on site at Lubu ahead of first production later this month…”
#CGO
CEO Carl Esprey
We are pleased to advise that an updated
#CGO
corporate presentation is now available.
This details the recent developments at our Lubu Coal Project, including the three-phase strategy comprising sales of coking coal, thermal coal and manufacturing coke.
“…The funds from the Convertible Loan, coupled with the November capital raise has ensured
#CGO
are fully funded to bring Lubu into production at the end of this quarter..”
CEO Carl Esprey
“…Given the scale of the Lubu asset, with a resource base of more than 1 billion tonnes, we believe that we can sell both coking coal and coke as two separate revenue streams moving forward…”
#CGO
CEO Carl Esprey
Muchesu Project Update
#CGO
remains in discussions with other potential off take partners of both coking and industrial coal as per the update of 26 October 2023, which would be envisaged as complementary to any contract with the MNC…
Coking coal futures on the Singapore Exchange hit all-time record highs in January supported by stronger Australian and global prices for the crucial steelmaking commodity around tight coal supplies and recent disruptions to logistics in N America.
#CGO
Production is underway on Block 2, which was selected given the high-quality coking coal found at that location and its proximity to surface.
Studies estimate 96Mt of coking coal within Block 2, which forms part of the broader
#CGO
Lubu complex.
We are pleased to confirm that Gordon Thompson has joined the board of
#CGO
as Non-Exec Director with immediate effect.
He has over 30 yrs of experience in building, developing and managing mines globally with an extensive track record in Africa.
We are pleased to announce we have entered into a non-binding Memorandum of Understanding with a leading Multi-National Company with respect to our
#CGO
Muchesu Coal Project, the in-country name of the Lubu Coal Project, in Zimbabwe.
"I am delighted to announce our first offtake deal for coking coal. AtoZ has established a significant presence in South Africa & Zimbabwe. We are pleased that
#CGO
will now begin to produce sales, cashflow & mature into a mining company”
CEO Carl Esprey
“..we are laser focused on executing the coke production business plan as it is expected to transform our margins five-fold in comparison to the sale of coking coal only, which already provides a good margin of over US$70/tonne…”
#CGO
CEO Carl Esprey
We are pleased to announce our audited results for the year ended 31 May 2021.
“…Following a capital raise post period,
#CGO
is fully funded to bring Lubu into production at the end of Q1 2022 and development is underway…”
“…Shareholders will be aware that Garalo-Ntiela has proved to be considerably larger in terms of resource quantum than originally modelled by our team, presenting the Company with a significant opportunity…”
#CGO
CEO Carl Esprey
Have you seen?
An updated corporate presentation is now available on
#CGO
's website!
The presentation will be used at the 121 Mining Investment Africa conference which starts today.
#mining
#Africa
#gold
Check it out here:
Do not forget we also have the Garalo-Ntiela
#Gold
Project also…
A short drilling programme is expected to commence imminently as
#CGO
looks to further verify the 2Moz potential outlined earlier this year, ahead of finalising the development strategy.
“…the ability to initially generate over $10M of additional earnings per annum by selling our thermal coal makes clear financial sense. At over a billion tonnes of coal, the Lubu Project is vast…”
#CGO
CEO Carl Esprey
Coal price responds to Russia in a big way…
…The Newcastle coal price broke through the $US400 ($548) per tonne barrier in response to Russian sanctions this week, more than doubling since the start of 2022.
#CGO
#CokingCoal
$CGO are pleased to receive positive testing results from samples produced at the Lubu Coal Project, confirming the high quality of the coal produced & its viability in coke production.
Here, the
#CGO
team in Mali are finalising the drill program now the rainy season has finished…
…In Zimbabwe, work continues as planned on the Lubu Coking Coal project.
This week
#CGO
were delighted to announce an at-market £2.5m fundraising, providing sufficient funds to bring the Lubu Coking Coal Project into Production by late Q1 2022.
We note the decline in share price over the last week, including a notable decrease today. The
#CGO
Board is not aware of any changes since its last update of 26 October that would warrant this price action, nor of any material change in circumstances.
Our
#CGO
CEO Carl Esprey joined
@TMSreach
to expand on news and the development strategy for Lubu.
“…look at what we are building. Look at the cashflow. Coke transforms the profitability of the Company. We’re also speaking to a spectrum of offtakers…”
“These results strengthen our position to complete additional offtake(s) for both coking coal and coke production. This is a exciting time as we look to complete full mine and processing construction ahead of first sales by year end”
#CGO
CEO Carl Esprey
Phil Carroll and Kevin Hornsby from
@RoastPR
catch up with our CEO Carl Esprey about the
#CGO
£7.5m placing and discuss progress with the offtake agreements…
Listen below ⏬
“Work has already commenced at site. The demand and outlook for coking coal remains positive. Our development strategy has positioned Contango to be able to generate significant free cashflow from operations going forward”
#CGO
Exec Director Carl Esprey
“As an emerging natural resources investment vehicle
#CGO
has been able to benefit from the advantage over larger developers to apply flexible development models to our assets to achieve cashflow in an ambitious timeframe”
Non-Exec Chairman Roy Pitchford
Contango Holdings Plc is pleased to advise that the Environmental Management Agency of
#Zimbabwe
has awarded the Environmental Impact Assessment Certificate for the
#CGO
Muchesu Coal Project, the in-country name for the Lubu Coal Project.
Garalo Gold Mine’s potential resource has increased +460% from its previous estimate!
Reinterpretation of historic data shows Garalo has potential resource of 1,800,000oz at av grade of 1g/t - significantly larger & rivalling others in this world class
#gold
producing region.
We are delighted to advise that our subsidiary Monaf Investments, the operating company for the
#CGO
Lubu Project, has been declared the winner of the 2022 Excellence in Community, Empowerment and Social Impact Award.
We are pleased to announce the publication of a prospectus, as approved by the Financial Conduct Authority, in connection with the
#CGO
Placing, announced on 31 October 2022.