The Kangari African Review #6

Featured Image: A Sudan sunset, 2012

Another busy couple of weeks in Camp Kangari, The UK and elsewhere is slowly opening Post-COVID-19 and we are organizing a temporary summer move to Lisbon, Portugal (watch this space for a joint Kangari/Spotlight Lisbon festa!). We are still being delayed for Africa trips, but we hope July brings brighter news.

COVID-19 is making a resurgence in the news when it comes to African mining with Zambia reporting a 30% drop in mining revenues and the Congo reporting a 20% of revenues, all due to the impact of COVID-19 on the continent disrupting production and export of product. The DRC, in particular, has seen a surge of cases in the Haut-Katanga mining region and has imposed strict lockdown rules likely to further affect revenue.

In Mali, industry favorites Roscan Gold (TSX.V:ROS) have successfully expanded they footprint by signing a definitive agreement with Komet Resources (TSX.V:KMT) to purchase the 35km2 Dabia Sud projects north of the Kandiole project. Likely to close at the end of month the deal is worth CA$1.6m in cash and further CA$1.6m in shares. Dabia Sud currently has an historic resource of 3.2 million tonnes at 1.03g/t Au (105,000 ounces).

Sticking with Mali, and Mali Lithium Ltd (ASX:MLL) reported positive drilling results from their Goulamina Lithium project, including 81m @ 1.47$ Li2O. Mali has been a bit of a hot spot for lithium exploration in the past couple of years, but little has come from it so far. I will be keeping an eye on Mali Lithium and see if their story can change the rhetoric.

Just South in Côte d’Ivoire, more impressive results from Tietto Minerals (ASX:TIE) at Abujar. This week’s results include 12m @ 7.54g/t and will help to increase the 2.15m ounce resource already in place. I have been watching Tietto closely and they seem to be ticking all the boxes to be CDI’s next gold miner – although I would predict that they get taken out long before any feasibility study is in place (Resolute (ASX:RSG), I am looking at you….)

Also in Côte d’Ivoire, long time miners Endeavour Mining (TSX:EDV) released an updated resource estimate for their Ity Mine in the south west of the country. The new resource (reserves, proven and probable) is up to 62.1Mt @ 1.57g/t Au (3.144Moz).

Across and north a bit, Chesser Resources (ASX:CHZ) released some nice intercepts including 23m @ 3.5g/t at their Diamba Sud project in Senegal. Chesser have flown a little under the radar for me, but it looks like their projects are promising and certainly in a good postcode being in close proximity to Barrick’s (TSX:ABX) Loulo complex in Mali.

I will close off this week talking a little about Sudan. I was fortunate to spent a few months in the Red Sea Hills exploring for copper-gold volcanic massive sulphide (VMS) deposits and as such get a few people reaching out for investment advice on the country and the companies currently operating there (specifically Orca Gold (TSX.V:ORG).

The country is vast, well populated and has historically generated most of its income from oil. During the succession of South Sudan, much of this oil revenue was lost to the newest country in the world and with this Sudan turned to gold as a potential cash cow, but for some reason (some might say many due to international sanctions), the government has failed to entice investors and foreign mining companies into the country.

Sudan has one of the largest amounts of informal gold mining in the world. According to the government, Sudan produced an estimated 93 tonnes of gold in 2018, making it the third biggest producer in Africa! The geology is varied and prospective, including the Arabian Nubian shield and Precambrian basement which have never been explored to their full potential which make Sudan a geological hot-spot (no pun intended).

If the government were to have their international sanctions removed, reform the mining code and mineral export procedure – Sudan could be the next big thing……. Then the issue becomes water.

Drilling in the Red Sea Hills of Sudan
Drilling in the Red Sea Hills of Sudan