Work is piling up and it seems the industry is having a post-COVID19 kick in the correct direction. I would be wrong to suggest that we are back to normal, with industry peers flying back to Africa for rotations being quarantined for 14 days before getting to site and other borders still not open, but we are on the way.
Endeavour Mining (TSX:EDV) made the big news in Africa this week through its C$1 billion acquisition of Semanfo. This transaction has created West Africa’s largest gold producer. The market, strongly bullish on gold now, reacted well with Endeavour’s share price rising by over 60%.
Another company doing well in the markets is Roscan Gold (TSX.V:ROS), who we mentioned were entering into an agreement to expand their landholding in Mali with Komet Resources (TSX.V:KMT). This transaction was completed last week and although not as big of a jump as Endeavour, Roscan rose a respectable 5.9% by market close Friday.
Sticking in Mali, Desert Gold Ventures (TSX.V:DAU) announced that had picked up even more land in the Senegal Mali Shear Zone (SMSZ) by acquiring a 95% interest in the Sola West concession. Desert Gold now hold a respectable 410km2 of prospective real estate in one of the worlds top gold jurisdictions. Desert Gold, who own some of the license I worked on in my time in Mali, seem to fly a little under the radar on the TSX and certainly could be worth a look as things develop.
We start the results this week, still in West Africa. In Côte d’Ivoire the impressive Roxgold (TSX.V:ROXG) reported yet more great results at Seguela, including 20m @ 28.0g/t Au. This project continues to develop at a rapid pace and will surely be the countries next gold miner….. that is unless near-neighbors Tietto Minerals (ASX:TIE) don’t beat them to it at Abujar where they high 8m @ 8.3g/t Au at their 2.15M ounce deposit.
Across in Ghana Galiano Gold Inc. reported results including 22m @ 2.8g/t Au at their Asanko Gold Mine.
Further south and Volt Resources (ASX:VRC) released a maiden mineral resource for their Luriri Hill project in Zambia, 10.2Mt @ 2.6g/t Au for 851k ounces gold is not a bad start in a country rich with mining infrastructure.
Gold is the focus right now, and that is understandable with prices stretching towards US$2,000 an ounce. I, like others, are bullish on the precious metal and I expect to see a rush to develop smaller, higher costs, gold deposits as this run continues.
Despite Africa’s abundance of gold and underexplored terranes the TSX is still shy of projects in Africa and companies are still favoring the ‘safer’ jurisdictions of north (and to an extent, south) America. I would really like to see some more Canadian activity this side of the pond where a wealth of opportunity awaits them!
Join me this Thursday at the finale of the Spotlight Mining showdown, where I will be a member of the expert panel judging the 7 finalists from this year’s COVID E-Conferences. Companies featured include Regulus Resources, Solgold, Minera Alamos, Excellon, Scottie Resources and Prospech Limited (yes, sadly no African representation this year!)