EXPLORATION ’94 — Canadians active in search of African

Many a Canadian junior has found its way to Africa during the past few years in search of diamonds and precious and base metals.

Four Central African nations, in particular, have proved attractive: Zimbabwe, Tanzania, the Central African Republic (CAR) and Zaire. Of the four, CAR and Zaire have drawn the diamond hunters.

Zimbabwe, the former British colony of Rhodesia, has hosted Canadian miners for some time. Nickel producer Falconbridge mined gold in the country before spinning off its gold-mining operations into Falconbridge Gold, which was recently taken over by Kinross Gold (TSE). Assets in Zimbabwe include two producing mines: Blanket and Golden Kopje.

A junior with an African and a global perspective is Caledonia Mining (TSE). (Not only is it active in Zimbabwe and Tanzania, but it has projects on the go in Spain and Hungary. The company also has a coastal and river diamond exploration program under way in the Northwest Territories.) Caledonia’s exploration activity — diamonds and polymetallic deposits in Zimbabwe and diamonds in Tanzania — is being undertaken through 46.3%-owned Reunion Mining, which plans to go public in Luxembourg. Reunion’s joint-venture partner in the diamond projects in both countries is Argosy Mining (VSE). Subject to obtaining financing, Reunion will proceed with development of the Sanyati oxide heap-leach copper project in Zimbabwe. Reunion, with a 75% project interest, and 25%-owner Zimbabwe Mining Development have completed a feasibility study.

A pure diamond company active in Zimbabwe is Redaurum Red Lake Mines (TSE). The company owns half of the producing River Ranch mine. The joint venture recently added a fifth prospecting area to its operation and applications have been made for nine more. The same joint venture recently launched a 30-month exploration program, worth $1.1 million, on its Zimbabwean property. Trillion Resources (TSE) has a half interest in Jena Mines, a small gold producer in Zimbabwe, which Trillion operates. An expansion of the mine is expected to double annual output to 25,000 oz. The company has been exploring its large land base in order to boost reserves. Elsewhere in the country, Trillion and two joint-venture partners have been working exploration permits for diamonds, gold and base metals.

A subsidiary of Trillion, Silobela Resources has a licence to explore for gold in northwestern Tanzania.

Two other Canadian juniors active in Zimbabwe are Antares Mining and Exploration (TSE), which owns a half interest in the Lady Lina gold deposit, and Southern Arizona Mining & Smelting (CDN), which has interests in a diamond project and a polymetallic property.

In Tanzania, BHP Minerals of Australia is earning a 58% interest in the Kabanga nickel project of Sutton Resources (VSE). BHP has been drilling north of the known deposit, which hosts a reserve estimate of 25.5 million tons averaging 1.19% nickel, 0.1% cobalt and 0.2% copper (based on a 0.5% cutoff for nickel). In the nearby Kagera region, BHP is earning a 66% interest. Bakertalc (ME) has been negotiating to acquire gold and diamond properties in Tanzania, including 11 gold prospects and 10 diamond properties (100% interests). Some of the properties are subject to joint ventures in which third parties may earn interests.

Active on a variety of fronts — gold, diamonds and mineral sands — in Tanzania is Tan Range Exploration (ASE). The junior has diamond concessions in the northern and central parts of the country. Last year, it struck an option deal with Takla Star Resources (ASE) and Fairfield Explorations (ME), allowing the pair to earn a half interest in the Luhala and Ngula gold projects. Tan Range’s mineral sands holdings sit along the shoreline of the Indian Ocean, north of Dar es Salaam.

A junior hunting for diamonds in the Northwest Territories, Pure Gold Resources (TSE) announced last year that it and Serengeti Diamonds (VSE), which changed its name from Dual Resources, had each acquired a 20% interest in a diamond property in Tanzania. An update is awaited.

Vancouver-based SRR Mercantile (VSE) has an option on a gold property in Tanzania, with a certain work commitment to be completed by May. In CAR, a handful of Canadian juniors have reported diamond exploration activity. One of them, United Reef (TSE), has completed a $1.8-million rights offering, funds from which will be used to continue exploring the Bamingui-Bangoran project. The company has been operating a pilot plant at the project.

Other juniors active in CAR include: Sikaman Gold Resources (TSE), Noront Resources (VSE), Radisson Mining Resources (ME), Morgain Minerals (VSE), Orcana Resources (VSE), Blue Emerald Resources (VSE), Ateba Mines (TSE) and Exploration Mirandor (ME).

Active in Zaire is Wye Resources (CDN), which raised funding late last year for the second phase of exploration on its alluvial diamond concessions. The junior was expecting to ship its first stones from the property in February.