Africa is home to bountiful reserves of metals such as gold, copper, and lithium. The continent also offers mineral exploration and development companies with large areas of underexplored terrain as well as several mining-friendly jurisdictions looking to harness mining revenues for development purposes. Here are eight miners active within Africa.
ASANTE GOLD
The mill at the Bibiani gold mine, in Ghana’s western region. (Image courtesy of Asante Gold.)
Asante Gold (TSXV: ASE; US-OTC: ASGOF) is a gold exploration and development company with a portfolio of assets in Ghana, including four exploration-stage projects and two in development.
The Vancouver-headquartered junior’s focus is on advancing its Bibiani and Kubi near-term production projects located on the prolific Bibiani and Ashanti gold belts.
In April, Asante also entered into an agreement with Kinross Gold (TSX: K; NYSE: KGC) to acquire a 90% interest in the Chirano gold mine, immediately south of Bibiani, in a cash and shares deal worth US$225 million. The deal is expected to close around the end of May.
Asante plans to bring back into production the past-producing Bibiani gold mine in the third quarter of this year. The company aims to produce approximately 190,000 oz. of gold in the first 12 months of operation, ramping up to 240,000 oz. annually for at least six years.
An updated feasibility study for the project in 2018 by previous owner Resolute Mining (LSE: RSG; ASX: RSG) showed that Bibiani has the potential to generate approximately 100,000 oz. of gold annually over 10 years at a life-of-mine, all-in sustaining cost (AISC) of US$764 per ounce.
Bibiani is fully permitted with mining and processing infrastructure on site, including a 3-million-tonne-per-year mill and processing plant plus existing underground mining infrastructure.
Mineral resources at the project currently stand at 20.1 million measured and indicated tonnes grading 2.71 grams gold per tonne for 1.8 million contained oz. gold and 8.4 million inferred tonnes at 2.78 grams gold for 750,000 gold ounces.
The company is now preparing a mine development plan based on an open pit model that is slated for release later this year.
The Kubi gold mine adjoins the 66 million-ounce Obuasi gold mine, owned by South Africa’s AngloGold Ashanti (NYSE: AU; ASX: AGG; JSE: ANG). Asante says it aims to develop Kubi as a 45,000-100,000 oz. per year producer and is currently reviewing two options to achieve this.
The first option involves a conventional decline access for underground mining at 650 tonnes per day and up to 45,000 oz. per year production. The estimated timeline would be 12 to 18 months to complete an exploration decline, resource to reserve drilling, underground development, and stope planning.
The second approach would employ green mining techniques that use direct mining from the surface. Asante says this option has the potential for lower capital costs and faster cash flow by using in-line gravity gold recovery.
Asante has a market cap of $20.4 million.
ATLANTIC LITHIUM
Atlantic Lithium’s Ewoyaa lithium project in Ghana. Credit: Atlantic Lithium.
Australian miner Atlantic Lithium (AIM: AAL; US-OTC: ALLIF) holds lithium assets in Ghana and Cote d’Ivoire in West Africa.
The company is focused on advancing its flagship Ewoyaa lithium project in Ghana, about 110 km east of the port city of Sekondi-Takoradi, within its Cape Coast lithium portfolio.
The project is set to be West Africa’s first lithium producing mine and is fully funded to production under an agreement with Piedmont Lithium (NASDAQ: PLL; ASX: PLL) for US$102 million, says Atlantic.
In March, the company reported a 42% increase in resources at Ewoyaa over the past 12 months. The new Joint Ore Reserves Committee-compliant estimate stands at 30.1 million indicated and inferred tonnes grading 1.26% lithium oxide.
Atlantic said that the total resource grade remains unchanged, and includes a 294% increase to 20.5 million tonnes grading 1.29% lithium oxide in the indicated category and 9.1 million tonnes at 1.19% lithium oxide in the inferred category.
In December, a scoping study for the project outlined a 2-million-tonne-per-year operation producing an average of 300,000 tonnes of 6% spodumene concentrate annually over an 11.4-year mine life.
The early-stage study pegged preproduction capital costs at US$70 million, which would be paid back in less than a year. The after-tax net present value, using a discount rate of 8%, was estimated at US$789 million, and the internal rate of return at 194%.
The project’s economics, based on 21.3 million tonnes grading 1.31% lithium oxide, confirms Ewoyaa as an “industry-leading asset and transformational for Atlantic Lithium,” said Vincent Mascolo, the company’s former CEO, who passed away in March.
Ewoyaa remains open at depth and along strike with additional untested pegmatites within the immediate deposit area, providing confidence for future resource upgrades, says Atlantic.
The company is engaged in ongoing resource expansion and exploration drilling with one drill rig currently operating on the site.
Atlantic Lithium has a market capitalization of £297.6 million ($478.8 million).
FORTUNA SILVER MINES
The processing plant at the Yaramoko gold mine in Burkina Faso. Credit: Roxgold.
Canadian precious metals company Fortuna Silver Mines (TSX: FVI; NYSE: FSM) holds a portfolio of mines and projects in the Americas and West Africa.
The company’s West African assets include the Yaramoko gold mine in Burkina Faso and the Seguela gold project in Cote d’Ivoire. Fortuna holds a 90% interest in both properties, acquired in a US$884-million takeover of Roxgold last year.
In April, the company reported that Yaramoko produced 28,235 oz. of gold in the first quarter of 2022 with an average head grade of 7.5 grams gold per tonne. It said that production from the mine is on target to meet the upper end of its 2022 production guidance range of 95,000-115,000 oz., primarily due to mill feed grade being 9% higher than planned for the period.
The 180-sq.-km property hosts two underground gold mines — 55 Zone and Bagassi South.
This year, Fortuna plans to undertake US$2.7 million worth of exploration at Yaramoko, which includes 34,000 metres of exploration drilling, testing several surface geochemistry anomalies generated in 2021, expanding the 109 Zone, and testing strike and depth projections of the 55 Zone.
In March, the company announced the first mineral resource estimate for the Sunbird discovery on Seguela. The deposit contains an inferred resource of 3.4 million tonnes at 3.16 grams gold per tonne for 350,000 oz. of gold.
Ongoing drilling at the deposit is targeting extensions down dip and along strike from the inferred resource and infilling within the inferred resource area, with the aim upgrading the resource and better defining the extent of the mineralization, which currently remains open at depth and along strike.
A 2021 feasibility study for Seguela outlined an open pit mine producing 120,000 oz. of gold per over an 8.6-year mine life for a total life-of-mine production of 1 million gold ounces. All-in sustaining costs (AISCs) are expected to average US$832 per oz. of gold over the life of the mine (life of mine operating costs of US$47.83 per tonne processed).
Initial capital costs were pegged at US$173.5 million. The resulting after-tax net present value was estimated at US$380 million (attributable to Fortuna’s stake in the Seguela), based on US$1,600 per oz. gold and a 5% discount rate. The after-tax rate of internal rate of return was pegged at 49%, and the payback period at 1.7 years.
Fortuna Silver has a market capitalization of $1.3 billion.
IVANHOE MINES
A Metso Outotec direct-to-blister flash smelter furnace in operation. Credit: Ivanhoe Mines.
Canadian miner Ivanhoe Mines (TSX: IVN; US-OTC: IVPAF) is focused on advancing its three joint venture projects in southern Africa: the Kamoa-Kakula copper mining complex in the Democratic Republic of Congo (DRC), in which it holds a 39.6% interest; the Plantreef palladium-rhodium-platinum-nickel-copper-gold discovery (64% ownership) in South Africa; and the historic Kipushi zinc-copper-germanium-silver mine (68% ownership) in the DRC.
In April, the company reported that Kamoa-Kakula had hit a new production record in the first quarter of this year, producing 55,602 tonnes of copper in the period, and a monthly record of 19,605 tonnes of copper in March.
The record production comes off the back of the first commercial production from the 3.8-million-tonne-a-year Phase 2 concentrator plant at Kamoa-Kakula, which the company said pushed daily output to a new high on Apr. 8, with 25,126 tonnes of ore milled and 1,202 tonnes of copper produced.
Ivanhoe said that early commissioning of the Phase 2 concentrator plant will enable Kamoa Copper to reach the upper end of its 2022 copper production guidance of 290,000-340,000 tonnes of copper in concentrate.
According to Robert Friedland, Ivanhoe’s co-chairperson, the commissioning of Phase 2 plant is an important step in establishing Kamoa-Kakula “as one of the two largest copper mining complexes on our planet.”
The company is also advancing its Phase 3 expansion at the project, with first copper production expected by the end of 2024.
Ivanhoe said that it is committed to producing the “greenest copper” in the industry from Kamoa-Kakula, and is working to become the first net-zero carbon emitter among the world’s tier one copper producers.
In March, the company released a feasibility study that outlined the initial two phases of development of the Plantreef mine to a steady state of production rate of 5.2 million tonnes of ore per year.
That same month, it released a technical report for Kipushi that includes a feasibility study for the planned resumption of commercial production at the past-producing mine.
Ivanhoe Mines has a market capitalization of $12.5 billion.
NEXTSOURCE MATERIALS
Drill core of the graphite from the Molo project in Madagascar. Credit: NextSource Materials.
Toronto-headquartered NextSource Materials (TSX: NEXT; US-OTC: NSRCF) is developing its 100%-owned Molo graphite project in southern Madagascar.
Molo is located 160 km southeast of Madagascar’s administrative capital (and port city) of Toliara, and 220 km from the Port of Ehoala at Fort Dauphin, a modern deep-water port developed by the World Bank and Rio Tinto (NYSE: RIO; LSE: RIO: ASX: RIO).
In March, NextSource released a preliminary economic assessment (PEA) for an enhanced Phase 2 expansion of the project. The study considered a standalone processing plant with a production capacity of 150,000 tonnes of flake graphite concentrate per year over a 26-year mine life.
The company says the Phase 2 processing plant would be built adjacent to the Phase 1 processing plant, which is currently under construction, and would be capable of processing 240,000 tonnes of ore per year to produce on average 17,000 tonnes of the company’s patented high-quality SuperFlake graphite concentrate.
Capital costs were estimated to be US$155.8 million, including US$32 million budgeted for contingencies. The resulting after-tax net present value was estimated at US$612.6 million, based on an average price US$1,231 per tonne of SuperFlake graphite concentrate and using an 8% discount rate, with an after-tax internal rate of return of 32%. The capital would be paid back in 3.7 years.
The PEA was based on measured and indicated resources of 100.4 million tonnes grading 6.27% carbon (graphite) for 6.3 million tonnes contained graphite, and inferred resources of 40.9 million tonnes at 5.78% carbon for 2.4 million tonnes of graphite.
In January, NextSource announced successful factory acceptance testing of the Phase 1 plant. It said the modular plant’s design and end-to-end functions had been verified and would be disassembled and transported to the mine site for installation.
According to the company, Phase 1 of the mine is fully funded and, when operational, will be one of the few graphite mines operating outside of China.
NextSource Materials has a market capitalization of $308.2 million.
OREZONE GOLD
The Bomboré plant site and TSF, May 2022. Credit: Orezone
Canadian miner Orezone Gold (TSX: ORE; US-OTC: ORZCF) holds a 90% interest in Bombore, one of the largest undeveloped gold deposits in Burkina Faso, approximately 85 km east of the capital Ouagadougou.
The 150-sq.-km property hosts a large oxide resource underlain by a larger sulphide resource that is open for expansion. The project is being developed in two stages, with first gold pour expected in the third quarter of 2022.
In April, Orezone released initial assays from its first grade-control reverse-circulation (RC) drill program on the A1 deposit at Bombore, targeting early mining areas from near-surface oxide mineralization within the A1 starter pit.
The drilling was aimed at increasing the confidence in both the geological interpretation of mineralization as well as the gold grade estimation in the upper 24 metres of the deposit. According to the company, the ongoing program is designed to cover the first 12 to 15 months of the scheduled process plant feed.
Highlights from the drilling included drill hole MAGA-GCA1-0096, which intersected 20 metres grading 4.49 grams gold per tonne from 27 metres downhole, and MAGA-GCA1-0183, which returned 11 metres of 7.48 grams gold from 6 metres.
Orezone says the drill results provided further confidence in the widths and tenors of the mineralization at A1 prior to the start of mining and processing. Drilling continues and an RC drill rig is now operating at the A2 open pit area.
An updated feasibility study on Bombore in 2019 envisioned an open pit mine with a mine life of 13 years producing an average of 117,760 oz. of gold per year for a total of 1.6 million ounces. All-in sustaining costs (AISCs) are expected to average US$730 per oz. over the mine’s life.
Initial capital costs were estimated at US$153 million, with US$66.2 million budgeted for sustaining capital over the mine life. The study estimated the after-tax net present value at US$361 million, using a 5% discount rate and a gold price of US$1,300 per oz., and the after-tax internal rate of return at 43.8%. Initial capex would be paid back in about 2.5 years.
The updated study was based on 229.4 million measured and indicated tonnes grading 0.69 gram gold per tonne for 5.1 million contained oz. gold, and 53.3 million inferred tonnes grading 0.65 gram gold for 1.1 million gold ounces.
Orezone has a market capitalization of $462.3 million.
OSINO RESOURCES
Drill rigs conducting exploration drilling at Twin Hills. Credit: Osino Resources.
Osino Resources (TSXV: OSI; US-OTC: OSIIF) is a Canadian gold exploration and development company focused on advancing its Twin Hills gold discovery in central Namibia, approximately 150 km north west of the capital, Windhoek.
In April, Osino released an updated mineral resource estimate for Twin Hills.
The project’s resources now stand at 65 million indicated tonnes grading 1 gram gold per tonne for 2.1 million contained oz. gold — a more than four-fold increase from the previous estimate of 14 million tonnes grading 0.98 gram gold for 440,000 oz. gold. Inferred resources add 20.7 million tonnes grading 0.93 gram gold for 620,000 gold ounces.
The company said that the increase in resources was due to resource expansion in the Twin Hills Central, Bulge, and Cloud areas, and delineation of additional resources from newly discovered areas.
The updated resource was estimated from 801 (167,597 metres) diamond core and reverse circulation holes drilled since the discovery was made in August 2019, and incorporates 153,356 metres of drilling sampled from 153,318 assays.
The drilling included step-out drilling at Cloud. Highlights included drillhole OKD322, which intersected 49 metres of 1.5 grams gold per tonne from 286 metres downhole, including 43 metres of 1.66 grams gold.
Infill drilling at Bulge and Twin Hills Central included hole OKD336, which cut 51 metres of 1.05 grams gold from 333 metres, including 35 metres of 1.27 grams gold; and hole OKD351, which hit 149 metres of 0.9 gram gold from 161 metres, including 35 metres of 1.15 grams gold and 23 metres of 1.02 grams gold.
A preliminary economic assessment for Twin Hills in 2021 envisaged an open pit mine with a life of 15 years producing an average of 99,000 oz. gold per year.
Preproduction capital costs were pegged at US$176 million. The early-stage study estimated the project would generate, at a 5% discount rate and a gold price of US$1,700 per oz., an after-tax net present value of US$377 million and an after-tax internal rate of return of 38%. Capital costs would be paid back in 2.3 years.
Osino is currently working to complete a prefeasibility study on the project.
Osino Resources has a market capitalization of $142.8 million.
TEMBO GOLD
Drill core from the Tembo gold project in Tanzania. Credit: Tembo Gold.
Tembo Gold (TSXV: TEM) is an exploration company looking to discover and develop gold projects in east Africa.
The company is focused on advancing its 100%-owned Tembo gold project in Tanzania, about 90 km southwest of Mwanza, a port city on the shore of Lake Victoria.
The 32-sq.-km property lies within the Lake Victoria goldfield, Africa’s third-largest gold-producing region, which also hosts Barrick Gold’s (TSX: ABX; NYSE: GOLD) Bulyanhulu gold mine, east of and immediately adjacent to Tembo, the Geita gold mine, owned by AngloGold Ashanti (NYSE: AU), about 45 km to the northwest, and Tanzanian Gold’s (TSX: TNX; NYSE: TRX) Buckreef gold project, about 45 km to the west.
Mineralization at Tembo primarily occurs in three mined zones — Ngula 1; Nyakagwe East, about 2.5 km southeast of Ngula 1, and Nyakagwe Village, roughly 2.5 km to the southwest.
In April, Tembo announced plans for an initial 13-hole (2,280 metres) drilling campaign on Ngula 1, Mgusu, Nyakagwe East, and Nyakagwe Village. The drilling is part of its planned 7,000-metre 2022 drill program, which, it says, will form the basis for a targeted resource drilling program to follow. The company plans to release an initial resource estimate in the second half of the year.
That same month, the company announced the sale of non-core prospecting licences to Barrick and Bulyanhulu Gold Mine Ltd., a subsidiary of Barrick. The licences cover areas on which Tembo has not previously focused its exploration activities.
Under the terms of the purchase, Bulyanhulu will pay an upfront cash payment of US$6 million to Tembo, plus certain other contingent payments that will be calculated based on the inferred, indicated, and measured gold resources identified in the areas of land which are covered by the licences, up to an aggregate amount of US$45 million.
Bulyanhulu is also required to invest a minimum of US$9 million in the area covered by the licences over the course of the four years following the closing of the sale.
Concurrent to the execution of the purchase agreement, Bulyanhulu has agreed to subscribe for, on a non-brokered private placement basis, 55 million common shares of Tembo at a price of 27¢ per common share, resulting in a pro forma ownership of 5.5% of Tembo.
Tembo Gold has a market capitalization of $28.6 million.
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