The Kangari African Review #3

As has been tradition, we start the week with Southern Africa and Diamonds…..

Lucara Diamonds (TSX:LUC) reported a massive loss of $3.2 million for the first 3 months of year. Production was on target, but a depressed diamond market has hurt the bottom line for all diamond producers. With the on-going COVID-19 situation, the diamond market is likely to be far from its bottom.

Other companies including Barrick (TSX:ABX), Kinross (TSX:K) and IAMGOLD (TSX:IMG), all with considerable operations in Africa have reported revised guidance for 2020 production and earnings heavily effecting their share prices.

In addition to this, Kinross took another blow with a workers strike at their Tasiast Gold Mine in Mauritania. The mine, which produces more than 300,000 per year in the remote Mauritanian desert, has been a hot bed for union action – this is the 5th strike since Kinross purchased the property from Red Back Mining (at a massively inflated price!).

The focus for new drill results and mineral resources is West Africa this week. We are seeing an increase in mineral resource/reserve estimates, this is probably a reflection of companies taking advantage of working from home, re-working their data and producing (hopefully) more solid resources.

In Cote d’Ivoire, Endevour Mining Corp. (TSX:EDV) announced an updated mineral reserve estimate (Proven and Probable) at Ity of 61.1Mt @ 1.57 g/t Au (just over 3 million ounces). As in CDI, Roxgold (TSXV:ROXG) continue to produce great drill results from their Seguela project, this week this included 10m @ 59.4g/t Au, I am watching this project closely as I strongly believe this will be the next big project in the region. My old paycheck writer Perseus Mining (TSX:PRU/ASX:PRU) also had some good results in CDI with 24m @ 4.22g/t Au at their Mahale project near to Sissingue. Just next door at Bagoe, Exore Resources (ASX:ERX) have completed their maiden mineral resource with a very respectable 9.75Mt @ 1.9g/t Au (600,000 ounces).

Moving into Guinea, another regular to this list is Predictive Discovery Ltd. (ASX:PDI) report further good drill intercepts from their Kaninko project, this week’s release included 22m @ 1.06 g/t Au from 10m.

Finally into Mali, Cora Gold (AIM:CORA) have been causing a bit of a stir this week, drilling 47m @ 0.63g/t Au at the Madina Foulbe project. Possibly the best results released this week are by Roscan Gold Corp. (TSXV:ROS) with a whopping 62m @ 4.84g/t Au at their Kandiole project near to B2’s (TSX:BTO)  massive Fekola project.

As a company, Kangari Consulting is seeing a rise in enquires for work in Africa so there is some hope that we are passed the worst of things and we will settle into a new ‘normal’ soon.

Tim Strong

Posted in The African Review

Tim Strong View posts by Tim Strong

Tim Strong is a principal geologist and MD of Kangari Consulting as well as the Project Development Manager at Global Energy Metals (TSXv: GEMC). His experience spans the management and implementation of gold and base metal exploration, both for junior and major companies. Follow more of Tim's thoughts on Twitter: @KangariC