Canadian gold miners active in Ghana

Out of the world gold spotlight for some time now, the West African nation of Ghana may be about to make a comeback — in part because of the initiative being shown by a number of Canadian mining companies.

It is reported that up to 32 companies from different parts of the globe are actively exploring for the precious metal in this nation, located along Africa’s old Gold Coast, and that half a dozen of the firms could be in production within the next 12 months. These include the joint-venture project of Sikaman Gold Resources, Denison Mines and Exall Resources. Besides the three companies mentioned above, a list of other Canadian firms pursuing opportunities for, or now involved in, gold exploration in Ghana includes Ghanorcan Resources of Toronto, D. K. Platinum of Vancouver and the Canada Ghana Gold Syndicate of Toronto. Another firm, the Canada Ghana Mining Group, a joint effort by Cominco Engineering Services of Cominco Ltd., Noranda Inc.’s Mining Corp. of Canada and the Montreal engineering firm snc Group, is providing management services for three government gold- mining operations in the country.

The Sikaman-Denison-Exall joint venture, whose corporate name is Canadian Bogosu Resources, is working to complete a feasibility study on its Bogosu concession (or property) where four open-pit targets are being explored. Of particular interest is the large Bogosu South sulphide deposit, which contains probable reserves of 1.7 million tons grading 0.16 oz gold per ton and a possible 18.2 million tons at the same grade.

“The Bogosu South deposit will have a major impact on how quickly the Bogosu concession matures from a potentially significant producer of 75,000 oz per year into a major producer of 300,000 oz per year,” Sikaman President A.T. Griffis said.

Sikaman has a 40.5% interest in the joint venture, Denison a 27% interest and Exall a 13.5% interest. (Denison owns about 30% of Exall). The two other partners are International Finance Corp. (9%) and the government of Ghana (10%).

Griffis said a production startup is possible before the end of 1988.

Ghanorcan is a private company owned by a group of Canadian investors and headed by Derrick Bulloch, a mining engineer and former employee of Ashanti Gold Fields, the largest gold-producer in Ghana. One of the investors, John Tait, said Ghanorcan has two concessions: the 32-sq-mi Obuasi prospect which is adjacent to and on strike with the Ashanti mine, and the 21-sq-mi Akanko prospect, a former producing property, which is nearer the coast. An exploration program has been started by Ghanorcan.

Tait said it is the intention of the investors to take Ghanorcan public, through the facilities of the Toronto Stock Exchange, possibly as soon as February of next year.

The Canada Ghana Gold Syndicate is another private company of which Bulloch is president. In the Syndicate’s case, however, only three other men are involved: Blair Howard, Gord Emmerson and Ben Asare-Quansah, also a mining engineer.

The Syndicate, Howard said, is in the process of developing two concessions, one near the coast and the other further inland. Drilling has not yet started, although field work is in progress. Howard said the company is looking at three possible types of mining operations: reworking old tailings, rejuvenating an old mine or developing an alluvial site.

D. K. Platinum President Brian Gorval told The Northern Miner his company is looking at possible property targets in Ghana for mining operations.

The Canadian Ghana Mining Group, with Cominco acting as the lead partner, has a contract for the management of three gold-producing projects belonging to the State Gold Mining Corp. of Ghana, a government company. The three properties are Tarkwa and Prestea, both underground operations, and Dunkwa, which is a dredging operation. The World Bank is providing financing for expansion of the operations.

W. G. Cooper, vice-president and general manager of Mining Corp. of Canada, said the management team is responsible for rehabilitation, reorganization and retraining of personnel at these mines.

According to Consolidated Gold Fields, Ghana, with gold production of 12.7 tons in 1986, ranked third in Africa, only slightly behind Zimbabwe with 16.4 tons, but well back of the leader South Africa, which turned out 705.3 tons (equal to about half of the non-communist world’s total gold output in 1986).

Shearson Lehman Bros. reports Ghana once produced more than 27.6 tons gold annually.

Ashanti, which is 45% owned and managed by Lonhro plc of Great Britain and 55% by the government of Ghana, and which is undergoing mine expansion, produced an estimated 260,000 oz gold in 1986. Shearson says output should rise to about 330,000 oz this year and eventually should hit 400,000 oz annually.

The State Gold Mining Corp.’s three mines are producing at a total annualized rate of 54,000 oz, Mining Corp.’s Cooper said.

A 1980 report on gold mining in Ghana refers to records which indicate gold-mining activity in the country dates back thousands of years. The earliest mineral concession was taken in 1875.

Ghana experienced a gold rush around the turn of the century; new railways and equity capital fleeing South Africa during the Boer War helped bring about this activity. The next major gold rush took place between 1925 and 1935.

Between 1880 and 1934, 45 mines were listed as operating along the Gold Coast. After the Second World War, only 11 mines were said to be operating in Ghana.