JUNIOR MINING — Canadian juniors active in African metals

The search for deposits has taken many Canadian junior companies abroad, including to Africa where the chances of discovering precious metals, base metals or diamonds are as favorable as anywhere else in the world.

African nations now “home” to Canadian juniors include Ghana, Mali, Niger, Ivory Coast, Burkina Faso, Gabon, Zaire, Tanzania, Central African Republic, Botswana, Zimbabwe and South Africa.

To be sure, there are difficulties to overcome, as there are in any part of the world where cultures, customs and languages differ. But for some, the geological challenge is too great to ignore.

“The geological environment is a dream for any junior mining company,” said President G.W. Hedican of Marshall Minerals (ASE), which recently secured a 550-square-mile exploration permit in the Ivory Coast of West Africa. Marshall owns a 58% interest in Eden Roc Mineral (TSE), a small but growing low-cost gold producer in the Ivory Coast. Eden Roc, which is projecting output this year of about 30,000 oz., has also increased the size of its land position in the country; the Marshall permit is adjacent

to the Eden Roc holdings.

Eden Roc’s mining partner is the Ivory Coast government agency Sodemi. Also active in the Ivory Coast is Trillion Resources (ASE), which last year took on Skeena Resources (VSE) as a partner in the Kobumbo-Zaakro gold permit. Trillion is also developing the Sipilou nickel deposit in the country. Sodemi has a minority interest in both ventures.

In Zimbabwe, Trillion has a 50% interest in the producing Jena gold mining venture; its partner is Zimbabwe Mining Development Corp. Plans call for the Jena operation to be expanded this year to 550 tons per day. Earlier this year, Trillion applied for exploration rights for diamond, gold and base metal prospects in the country.

Elsewhere in Zimbabwe, Caledonia Mining (TSE) recently reported a gold find by Reunion Mining (Zimbabwe) and Blanket Mine (1983). Reunion is an indirectly owned subsidiary of Caledonia whereas Blanket is a subsidiary of Falconbridge Gold (TSE). The companies were focusing on a drill target consisting of three anomalies buried under the Kalahari sand. Caledonia also reported optioning its base metal properties in Zimbabwe to privately owned Argonaut Mining, which may earn a 50% interest by spending $3.4 million on exploration over three years.

Falconbridge Gold produced 26,404 oz. gold in 1992 from its two Zimbabwe mines. It also performed additional work last year on its Signal Hill gold property in Botswana and came up with seed funding for a pair of prospects in the Witwatersrand Basin in South Africa.

Active for about three years in Tanzania, on the east coast of the continent, has been Tan Range Exploration (ASE). The junior is developing gold, diamond and heavy mineral sands projects. It recently acquired funding to study whether money can be made by reprocessing gold tailings from small-scale Tanzanian operations; a Tan Range subsidiary and Mill-Ore Industries of Timmins, Ont., will perform the assessment work.

Also exploring in Tanzania is Sutton Resources (VSE), which is developing the Kabanga and Kagera nickel prospects with BHP Minerals International. The Tanzanian government has a minority interest in the projects. Sikaman Gold Resources (TSE), which has been active in Ghana, expects to produce about 15,000 oz. this year from its Goldenrae operation. A 1-million-cubic-metre-per-year processing plant was commissioned there in the latter part of 1992. Sikaman last reported owning a 25.4% interest in Goldenrae.

Late last year, Sikaman acquired an option to buy an interest in a diamond concession in the Bamingui region of the Central African Republic. The company and joint-venture partner Sherwood Corp. have a 5-year permit on a 500-sq.-km diamond concession on the southern portion of the Mouka Ouadda plateau in the same country.

In western Ghana, Vauquelin Mines (ME) has an option (subject to regulatory approval) to earn a 50% interest in the Toleku Bokaso property by spending $150,000 on exploration by the end of 1994, making a cash payment and issuing shares.

Further south, in Gabon, Aurtec (ME) is working to bring its Bakoudou gold project into production this year and start development at its Eteke gold property. Aurtec is also active in Mali and Niger.

InterStar Mining Group (CDN) recently started producing processed direct-shipping ore, at 250 tonnes per day, from its Tambao manganese mine in northern Burkina Faso in West Africa.

International Platinum (TSE) has been arranging financing to allow it and project partner Swansea Gold Mines (CDN) to buy and develop three platinum group metal properties on the Bushveld Complex in South Africa. The search for diamonds has brought several Canadian juniors to Africa. In addition to Sikaman, such players as United Reef Petroleums (TSE) and Noront Resources (VSE) have been attracted to the Central African Republic. Wye Resources (CDN) reports the recovery of diamonds from concessions in Zaire. In Ghana, Nora Exploration (ME) recently applied for a diamond (and gold) concession straddling the Birim River. Redaurum Red Lake Mines (TSE) announced the purchase of Cornerstone Investments which has a 50% interest in a producing diamond property and exploration leases in Zimbabwe. Also becoming active in Africa is Aabbax International Financial (VSE). Along the west coast of South Africa, Canadian Overseas Exploration (VSE) has teamed with Ascot Resources (VSE) in an option agreement covering a 46-sq.-mile diamond concession. Menora Resources (ME) is negotiating to increase its interest in Ocean Diamond Mining Holdings, which recovers diamonds from the ocean floor along the southwest coast of southern Africa. North of Kimberley, South Africa, four partners — SouthernEra Resources (TSE), Stow Resources (VSE), Dryden Resource (VSE) and Beckleigh Investments — report that a 50-ton-per-hour diamond recovery plant is operational at the Leicester pipe and that a bulk sample has been tested. The joint venture has also intersected a kimberlite of unknown dimensions to the east of the pipe.