EXPLORATION 1997 — Vauquelin to explore for gold in Madagascar

Montreal-based Vauquelin Mines (VAQ.A-M) will soon be exploring for gold in Madagascar.

Situated in the Indian Ocean, 430 km off the coast of Mozambique in southeastern Africa, Madagascar is the world’s fourth-largest island. It is dominated by a mountainous central plateau, which hosts a variety of mineral deposits — from gold and beryllium in the north to base metals, uranium, titanium and rare earths in the south.

Gold mineralization has traditionally been found along the contact between the Precambrian gneisses and granites that make up most of the island, and the Permian and Mesozoic sedimentary and volcanic strata that flank the island’s western margin.

Madagascar’s Ministry of Mines and Energy awarded Vauquelin two exploration permits, called Andriba and Betsiaka, which lie along the contact. They are valid for five years, after which time they can be renewed.

The Andriba permit comprises 338 sq. km near the town of Andriba in the west-central part of the island, 100 km northwest of the capital city, Antananarivo. The permit includes the Bejofo gold district, where there are vestiges of old mines.

Gold mineralization at Andriba is hosted by quartz veins within sheared biotitic gneisses in contact with Permian sandstones. Some alluvial and eluvial gold is also found in the area.

The Betsiaka permit totals 44 sq. km in the northern part of the island, about 50 km south of Antsiranana. The permit covers the gold-bearing Andavakoera geological complex.

Gold mineralization at Betsiaka is associated with fibrous barite within quartz veins in a geological setting similar to Andriba.

Vauquelin President Pierre LaRicheliere says his staff first became interested in Madagascar in 1995 while attending a mining conference in Africa. One of the first problems the firm encountered was a lack of information in Canada and France concerning Madagascar’s geology.

Reconnaissance work

Vauquelin will begin prospecting its permits in April, performing reconnaissance geological and geochemical sampling, as well as ground geophysics. The firm will send one or two

of its geologists to Madagascar, intending to hire local residents on a short-term basis. Vauquelin also plans to work with government geologists and local artisanal miners. For later work, the company may rent heavy equipment from other mining companies on the island.

On the political front, citizens recently resurrected past president Didier Ratsiraka by electing him to a new term as president. Ratsiraka, who has pledged the establishment of a “humanistic and ecological republic,” was defeated in the previous election, in 1993. His subsequent exile ended 18 years of nationalist and socialist rule that was characterized by a stagnant economy.

LaRicheliere does not believe Ratsiraka’s return will affect operations, noting that the mines minister who approved the permits is a supporter of the new president.

LaRicheliere expects the new government will continue to follow plans aimed at improving the economy, foreseeing no changes in the mining investment rules that were brought in by Ratsiraka himself in the late 1980s, when his government first initiated free market reforms. These rules provide for the export of gold and the repatriation of profits by foreign investors.

Historically, Madagascar has been characterized by strong nationalist sentiment. In earlier centuries the Portuguese, English and French all tried to colonize the island but were repeatedly resisted by strong monarchies based in the central plateau. The country was annexed militarily by France in 1896 and its monarchy subsequently abolished. Though occupied by the British in 1942, it became a territory within the French Union in 1946. Independence was achieved in 1960.

Madagascar remains one of Africa’s poorest countries, with a gross domestic product of US$3 billion. The population, predominantly rural, number about 13 million. The country is still recovering from late January’s cyclone, Gretelle, which killed at least 50 people and left thousands homeless.