African Mineral Resources ups its interest in MDDZ

Privately owned African Mineral Resources (AMRI) and joint-venture partner Mines D’or du Zaire (MDDZ) have bought an additional 64% interest in Societe Zairoise Minere et Industrielle due Kivu (SOMINKI). The two partners now hold a 74% interest in the conglomerate, based in Kinshasa, Zaire.

In addition to owning power plants and having over 5,000 employees, SOMINKI holds 47 mining concessions covering more than 1 million hectares and 10 mining permits covering almost 24,000 hectares within a 100,000-sq.-km area in eastern Zaire. The company also operates an underground gold mine and 300-ton-per-day processing plant, along with a number of alluvial and eluvial gold and tin mining operations. In 1995, SOMINKI produced about 10,000 oz. gold and 650 tons of tin and generated revenue of US$6.2 million.

The conglomerate also owns the following four underdeveloped gold deposits, which will be examined further by the joint-venture partners: * The Mobale is an underground mine which has produced more than 800,000 oz. since 1923. Engineering studies indicate the mine could host proven, probable and possible reserves that surpass historical production. The property also hosts a 272-tonne-per-day gravity flotation mill, which is currently operating at less than 20% of capacity.

* The Twangiza mine has proven and probable minable oxide reserve of 5.5 million tonnes averaging 4.3 grams per tonne and a possible minable sulphide reserve of 2.7 million tonnes averaging about 1.67 grams gold. Independent consultants have concluded the 4-km-long mineralized trend could host a geological resource of 1.2 million oz. below the 2100-level.

* The Namoya mine produced 128,000 oz. gold between 1955 and 1961 and holds minable sulphide reserves of more than 300,000 oz. The property surrounding the mine hosts five gold deposits within a 3-sq.-km area that have additional potential.

* The Lugushwa mine hosts proven, probable and possible reserves of 30,000 oz. and resources of more than 300,000 oz. Two known hard-rock occurrences on the property have resources totalling 2.7 million tonnes averaging 4.1 grams, and 2.3 million tonnes averaging 3.6 grams.