A special bi-monthly feature from Tim Strong at Kangari Consulting:
Spotlight Mining's daily content is sponsored by our friends at:
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 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 Tim and the Kangari team around the world:
Spotlight Mining share and produce articles of interest for companies in the junior mining and tech sectors. While we're keen observers, we are not financial advisors, in fact we're not even very good investors ourselves. We encourage you to do your own due diligence and seek professional advice on the risks, before investing any funds. Only ever invest what you can afford to lose.