New York based oil and gas exploration company Allied Energy Corporation has signed a memorandum of understanding to acquire Starfield Minerals, which controls tin, tantalite and mica concessions in the Choma area of Zambia.
Production at the Starfield Mine is currently conducted by artisanal workers, and it is anticipated that extensive production efficiencies and volume improvement can quickly be achieved using mechanization. When mining plant and equipment is installed, production is expected to increase from current nominal levels to potentially 400 tonnes per month of tin concentrate.
As the Choma site is expected to be developed further, it is anticipated that most if not all of the current artisanal miners will be employed in this venture. Additionally, adjacent sites have been identified for potential acquisition as part of expanded exploration and development activities. Production will be delivered to market via South Africa or Tanzania. Zambian, South African and American based entities have expressed a willingness to purchase the product.
