Gold Exploration in West Africa

[FL]

Gold exploration in Nigeria........Don King?

Below is an excerpt from a 2002 web page on gold in Nigeria. Apparently the boxing promoter Don King was (is?) large in Nigerian gold exploration. Africa Today had reported in 2000: "... Don King International Development Corporation (DKIDC), will be signing a memorandum of understanding with the government to prospect for gold.", while Business Day had said: "Don King is chasing after the lure of gold in Nigeria (Business Day, Jhb.) ABUJA - World boxing promoter Don King has applied for a licence to explore for gold in Nigeria, the minister of solid minerals, Kanu Agabi, confirmed in Abuja. ... Nigeria, which makes 90% of its foreign exchange from crude oil, is seeking to diversify its revenue base. ... Surveys have ... shown that Nigeria could earn billions of dollars annually from solid minerals."

The other company mentioned , Hansa Geomin consulting of Dakar, Senegal, has web page:
http://www.hansagmc.com/en/references_en.htm

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[ from http://nigerianewsnow.com/News/November02/December02/161202_mining.htm ]
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Gold In Nigeria

The second world war forced the British ,Golonjal administration to close down gold mines, resulting in a recession of the gold mining boom of the 1930's and a shift to Tin-Tantalite fields.

Most miners remained in the Tin- Tantalite- Columbite fields after the 2nd world war as a result of falling gold prices and the difficulty of reopening many of the mines.

The gold deposits are within the Nigerian Pre-Cambrian "Schist-Belt" which extends from the coastal areas in the South-Western Nigeria to the Northern part of Nigeria in Zamfara State.The area covered is about 900 km long and 200 km wide with enormous potentials.

The Nigerian Mining Corporation commenced exploration for gold in 1980 with an extensive reconnaissance survey of many parts of the "Schist-Belt". Primary, Alluvial and Eluvial prospects were identified for semi-detailed assessment.

NMC's goal is to turn these prospects into good deposits for joint ventures with minority share holding. The Iperindo Gold field in Ilesha and the Shiroro Gold field in Niger State are under Joint Ventures with Hansa Geomin of Germany and Don-King International Development Corporation of USA respectively.

NMC is in the process of evaluating the deposits and has commenced core drilling in the Okolom/Dogon-Daji and Waya gold fields in Kogi and Kebbi States respectively. Public infrastructure in these regions, which facilitate mining operations, are in place to varying degrees.


The Okolom/Dagon-Daji Goldfields

The Okolom/Dogon-daji Gold field is located about 23 kilometres north of Isanlu in Kogi State of Nigeria.

The deposits are accessible through Isanlu, which is connected to the National Electricity Grid and virtually covered by the national telecommunications network. Gold mining in the Okolom Area commenced around 1935 with the application of the open-pit and shallow underground methods. The Okolom mine is one of the richest known deposits in

Nigeria and records indicate that mining grade was 30g/ton prior to its forced closure in 1942 due to tantalfte mining, which was prevalent during the Second World War.

The mineralization (strike length is more than 3km) is within a prominent shear zone and significant gold values are associated with surface exposures of both quartz vein and wall rocks. Gold values in quartz veins are variable along strike from 1.0 to 36g/ ton in Okolom and up to 75g/ton in Dogon-
--Daji. ,


The Waya Primary Gold Project

General Description

The Waya project is about 10kilometres west of Yelwa -Yauri, a settlement on the tarred Yauri-Kontagora road in Kebbi State. The Nigerian Mining Corporation has held the title to this concession since 1983 and has recently reactivated it. A geological reconnaissance campaign within the centre area of about 1.5 km2 has been carried out employing ground magnetic survey. The area has also been geologically remapped.

Recent field works indicate the existence of satellite deposits towards the west and the north of these known deposits. The potential of the Waya Primary Gold Deposit is estimated at 0.75 million ounces of gold. The deposit is marked by old open pits and shafts along the North-eastern structure.

Project Status
*Landsat IM imagery and aerial Photography
*Geological map 1 :5,000
*400 soil samples analysed for gold .

*500m of trenches and pits .300m shafts and drives *20km ground magnetics .20km radiometrics and
*300m of diamond-drillholes logged and analysed

The Waya primary gold deposit with a known overall length of 1500 meters in strike, is partially explored to a depth of 50 meters. The main lode which has an average width of one meter, hosts about 1 million tonnes of ore with less than 15 grammes per tonne of gold content corresponding to a total geological reserve of 0.1 moz with further additional 0.2moz of probable resources. Gold occurs as free gold, microscopic inclusions in sulphides as well as tellurides. The Waya Primary Gold deposit is not a single lode, but it is a swarm of quartz veins within a sequence of altered schists surrounding a porphyritic granite in the East of the deposit.

All data can be verified at the head office of the Nigerian Mining Corporation in Jos Plateau State, Nigeria. Pre-investment documents are available to prospective investors.

Many parts of the schist belt are under the concessions of the Nigerian Mining Corporation and are open to Joint venture arrangements.

NMC is currently carrying out detailed geological, geochemical, geophysical surveys, which is being followed by widely spaced core-drilling operations. Exploration work, feasibility study and construction leading up to production start-up have been scheduled in one year intervals from 2002.


Iperindo Primary Gold Project

General Description

Segilola Gold deposit is the most advanced gold exploration project in Nigeria and remains a showcase for joint venture between Nigeriali and foreign investors in the solid minerals sector. The deposits potential is
estimated at 2 million ounces of gold.


Permit History
In 1997, Joint-venture agreements between Tropical Mines Ltd/Pineridge (Nig.) Ltd and Ijesa GeoMin Mining Development Corporation Ltd were signed upon a stepwise earn-in against disbursement of exploration expenditures by Ijesa GeoMin Mining Development Corporation Ltd. Tropical Mines is a Joint Venture company between Nigerian Mining Corporation and Pineridge (Nig.) Ltd.
Project Status
*Landsat TM imagery and aerial Photography
*Geological map 1 :12,500
*1,500 soil samples analysed for gold

*520m of trenches and pits .100m exploration audit
*400km ground magnetics
10 km radiometrics and

2,800m of diamond-drillholes at 30m intervals, logged and analysed at 1m intervals

Exploration Results
Segiloa Gold deposit with an overall length of 1,000m in strike, is explored to a depth of about 75m. Mineralisation is on average, 10m wide, hosting 2mt of ore with over 5 grammes/ton gold content, corresponding to a total reserve of 0.3mol, (drill indicated) with further additional 0.3 mol of probable resources. Gold occurs as free gold, microscopic inclusions in sulphides and as tellurides.

Infrastructure

Accessible by tarred road on a three hours -road iourney from Lagos. Old mine site 600m from tarred ro.ad accessible by 4WD throughout the year. 30km of access road motorable all year through within the permit. Exploration camp (4 bungalows) with constant water supply, power generator and telecommunication in the town of Ilesha (200,000 inhabitants).

Fiscal Regime
5 years tax holiday, hereafter 30%income tax and 5% withholding tax for the repatriation of profits. Others include:

*No restriction for foreign investment;

*Deferred royalty payments;

*Capitalisation of initial investment;

*Increased depreciation rate;

*Additional 5% capital allowance;

*MIGA convention ratified by Nigeria.

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