Gold Exploration in West Africa

[FL]

First Quantum (FM.TO) now in Mauritania

From Mining Weekly 16 July:

http://www.miningweekly.co.za/min/news/today/?show=53689

[ Note: First Quantum is primarily a copper mining company operating in Zambia and Congo. It's not in the board header at this time. FL ]

Miner buys into Mauritania copper-gold prospect
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Toronto Stock Exchange-listed First Quantum Minerals reports that the government of Mauritania has signed an agreement approving its involvement in the development of the Guelb Moghrein copper-gold deposit located near Akjoujt in Mauritania.

The company says the agreement clears the way for a new company to be formed, which will be beneficially owned 80% by the Canadian group and 20% by Guelb Moghrein Mines d'Akjoujt.

First Quantum has undertaken to develop Guelb Moghrein with production expected by the fourth quarter of 2005.

Production will be initially targeted at approximately 30 000 tons of copper and 50 000 ounces of gold per year in the form of a copper-gold concentrate which will be trucked to the port of Nouakchott and exported to smelters in Europe and Asia. The trucking and ship loading will involve local companies using existing port facilities.

First Quantum Minerals has initiated metallurgical test work on ore samples to determine the optimum process for recovery of the copper and gold mineralisation.

MDM Processing, an Australian engineering company, has been contracted to oversee this metallurgical work and to complete the preliminary process design. Under the current timetable, the metallurgical test work and process design will be completed by the end of this year with contracts for the plant construction awarded early in 2005.

It is expected that up to 500 employees will be involved in the construction phase at Guelb Moghrein, with a large proportion of the work being carried out by Mauritainian contractors. Once in production, the mine is expected to employ approximately 200 Mauritanians. Apart from the opportunity for employment, the residents of Akjoujt are expected to benefit from the upgrading of both power and water supplies, and the general increase in commercial activity as a result of the mine development and operation. Considerable benefits are also expected to flow to Mauritanians in general, through royalties and taxes generated from the project.

"First Quantum sees this investment as a first step in a potentially larger involvement in Mauritania, particularly if exploration activity, for similar ore-bodies in the surrounding concession area, is successful,” said Philip Pascall, chairperson and CEO of First Quantam.