AFRICA — Normandy advances African gold projects

Canadian mining companies exploring in Africa are finding that their Australian counterparts are equally interested in the continent’s mineral potential.

Among the senior Australian companies active in west Africa is Normandy Mining (NDY-T). The company is Australia’s largest gold producer, turning out 428,450 attributable oz. in the quarter ended Dec. 31, 1997.

In Ghana, the company, through its subsidiaries, is nearing completion of a bankable feasibility study for the Centenary gold project, and is conducting delineation drilling at the nearby Kenyase project.

The company is also exploring the Ity gold project in Ivory Coast, a producing heap-leach operation, and holds an interest in the Kasese cobalt project in Uganda, where construction of a plant has started.

Normandy’s 61.4%-owned subsidiary, La Source, produced 73,669 attributable oz. to Normandy in the latest quarter, up 32% from the previous quarter. Cash operating costs averaged US$137 per oz., plus US$25 per oz. in royalties.

The Ariab operation, situated in the Nubian desert of northeastern Sudan, produced a record 50,182 oz. last year. Output last year increased by 64% over the previous year, owing to the initial processing of higher-grade material from Adassadakh and an expansion of the treatment plant to 600,000 tonnes per year.

Gold production at Ity, an open-pit operation in western Ivory Coast, decreased last year as a result of lower grades. Cash costs there, however, remained low.

Production at the Lero operation, in northeastern Guinea, was higher than expected last year as a result of gold plant availability and increased plant output.

On the development front, La Source expects to complete in June a bankable feasibility study for its 41%-held Centenary project in Ghana. That project is part of the Yamfo concession, which covers a strike length of 50 km in the Sefwi-Yamfo belt. A scoping study for Centenary indicates that an open-pit, carbon-in-leach operation could produce 200,000 oz. gold per year, along with robust returns. Exploration at the nearby Kenyase project suggests that the development of a second mine may be feasible.

At Angovia, in Ivory Coast, La Source is preparing to begin construction of a 40,000-oz.-per-year heap-leach mine.

At the Ity project, ongoing exploration within a 14-km-long anomalous trend, near the existing plant, is returning encouraging results, including 22 metres of 6.3 grams gold per tonne and 9 metres of 14.9 grams.

Other exploration activity included infill drilling at the Tasiast project in Mauritania, in which La Source holds a 100% interest, and at Adi Nefas in Eritrea, also held 100% by La Source. At the Sudanese project, held 55% by La Source, stream-sediment sampling has identified a large anomalous area extending along a major shear zone with numerous ancient gold workings. A trenching program is being developed.

Normandy, through La Source, has implemented numerous social programs in Africa aimed at improving the quality of life for people living near mine sites and exploration projects. At the Lero mine in Guinea, potable water wells have been installed, and a health centre was opened late last year.

At Ity, a covered market and housing facilities have been built, along with infirmaries, a school and an activities centre, as well as numerous other facilities. At the Ariab project in Sudan, the mine operator funded construction of a school and operates an infirmary for both mine workers and villagers.