Amigo Resources (LSE:AMGO) told shareholders on Wednesday that installation of processing equipment at its Kabete and Mojimoto gold projects in Tanzania is nearing completion, as the London-listed company approaches commissioning at both sites.
The small-cap miner holds a 51% interest in the two projects, which sit in Tanzania's Lake Victoria goldfield and are designed to recover gold and platinum group metals from both freshly mined material and historical tailings.
Executive Chair Craig Ransley, writing in a letter to shareholders, said the company is combining gravity concentration, copper collector metallurgy, secondary gold leaching, direct electrowinning and pyrometallurgical processing into an integrated recovery model.
"We believe we are approaching a pivotal stage at which years of investment, technical development and operational preparation can begin to translate into measurable financial results," Ransley said.
The letter follows an October 9 update in which Amigo said major processing equipment had arrived on-site and that combined capacity across the two plants is expected to reach approximately 600 tonnes per day once installation completes and commercial circuits are commissioned in early in the fourth quarter, subject to environmental clearances.
Amigo has said monthly production, sales and revenue reporting will remain paused during the installation and transition phase and resume once the new circuits are commissioned.
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The company's internal forecasts, not based on a JORC Reserve or Resource, point to gold recovery of 2.5 to 3.0 grams per tonne of ore processed, with each plant targeted to produce 20 to 25 kilograms of gold per month at an installed capacity of 300 tonnes per day.
Ransley said the company's priorities as it transitions toward production are to establish dependable operations, generate operating cash flow, maintain capital discipline and reinvest in opportunities offering attractive returns.