10 highlights of FinnAust mining's acquisition of Avannaa Exploration
FinnAust Mining, the exploration company with operations in Greenland, Finland and Austria, has announced that it will strengthen its position in Greenland with the acquisition of Avannaa Exploration Limited. The company is a mineral exploration company with several advanced projects in the south-west of Greenland.
The acquisition, which will also see FinnAust acquire share capital of Avannaa from Capricorn Oil Limited, a subsidiary of Cairn Energy Plc.
Here are 10 highlights of the deal:
- Two of the projects, which have been the subject of more than US$50 million of technical work prior to Capricorns activities by blue chip mining houses, are of particular interest:
- The 194 sq km Disko-Nuussuaq (‘Disko’) Magmatic Massive Sulphide (‘MMS’) nickel-copper-platinum project (‘Ni-Cu-PGE’)
Detailed sulphide inclusion analysis from the Disko flood basalts show strong sulphide segregation has taken place
The existence of a 28 tonne massive sulphide boulder assaying 7% Ni, 3% Cu & 2ppm PGE in a cross cutting dyke interpreted to have sampled an MMS conductor during emplacement, confirms the model
- Seven large scale MMS Ni-Cu-PGE conductor targets confirmed, the two largest are 5.9km long & 1.1km wide and 4.8km long & 800m wide
- The 107 sq km Kangerluarsuk SedEx lead-zinc-silver project (‘Kangerluarsuk’)
- Previously drilled by Cominco then RTZ, historical results include 41% Zn, 9.3% Pb and 596 g/t Ag
- 2 large scale drill ready SedEx targets located in favourable topography
- Projects complement FinnAust’s stated strategy of acquiring low cost, high quality assets – both have minimal exploration commitment and low administrative holding cost due to historical expenditure credits
- Primary focus to remain on delivering production at Pituffik Titanium Project in Greenland (‘Pituffik’) – bulk sampling targeted to commence in 2017
- Acquisition price of £500,000 to be satisfied through the issue of new ordinary shares in FinnAust
- Acquisition conditional upon, inter alia, change of control approval being received from the Greenland Government
FinnAust CEO Roderick McIllree said, “This acquisition further consolidates FinnAust’s position in Greenland and sees us add quality acreage to our Greenlandic portfolio, which already includes the unusually pure Pituffik Titanium Project. Having worked in Greenland extensively over the past 10 years, my team and I have an excellent understanding of the resource opportunity in this emerging jurisdiction, the potential of which grows day by day as a result of environmental changes.”
“In terms of strategy, FinnAust will maintain its immediate focus on advancing Pituffik, which is shaping up to be a globally significant titanium asset. Before announcing details of our work programme plan for these new assets, our team will first absorb the large datasets available to ensure that all future work delivers the success we have seen at Pituffik and maximises shareholder value.”
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AngloGold Ashanti establishes BG Umoja JV in Tanzania
AngloGold Ashanti, in line with it s strategy to ensure a sustainable contribution to the economies of host countries, has established the BG Umoja joint venture (JV), in Tanzania.
Awarded a $186m two-year mining contract for the Nyankanga and Geita Hill underground mining projects, the 80/20 joint venture is a partnership between Africa Underground Mining Services (AUMS) Tanzania, a subsidiary of Australia’s Perenti Group, and local drilling services and mining- supply company, Geofields Tanzania Limited.
The partnership is modelled on a similar underground mining joint venture at the Company’s Obuasi Redevelopment Project in Ghana between AUMS Ghana and Accra-based, wholly Ghanaian-owned Rocksure and will help build local specialised mining capacity.
“We’re working with our experienced mining contractors to assist in establishing local joint ventures for long-term transfer of sustainable skills, and to continue building on our sustainable local procurement programmes,” commented Sicelo Ntuli, AngloGold Ashanti’s Chief Operating Officer: Africa.
“AngloGold Ashanti is building sustainable local procurement programmes that will allow it to stimulate economic and social development at all of its operations, evidenced by the significant contribution Geita has made to the fiscus and people of Tanzania.”
AngloGold Ashanti’s annual expenditure with indigenous Tanzanian suppliers has almost tripled to $162mn since 2016. The company’s local team in Tanzania has set itself an ambitious target of 60% to 70% of all expenditures with indigenous Tanzanian companies, by 2025.
Scope 3 Emissions
In addition, AngloGold Ashanti’s Geita Gold Mine has awarded a two-year fuel transportation contract, worth approximately $10.8m a year, to two local contractors - one of which is originally from Geita. This is in line with the mine’s commitment to contribute to the economies of host communities. The Geita-based company was part of Geita Mine’s supply chain capacity building initiative for host community suppliers, a partnership between the Mine and the National Economic Empowerment Council.
To influence Scope 3 emissions, trucks are to be compliant with EURO IV emissions standards, tankers are to be made of an aluminium alloy material to reduce weight and the age of the fleet will be maintained at less than six years.
Diversity & Inclusion
The contractors already employ women fuel tanker drivers, fulfilling the Mine’s requirements for diversity and inclusion. The two contractors both own workshop facilities in Geita town and participate in social initiatives aimed at uplifting the lives of host community residents.
AngloGold Ashanti has been operating at Geita Gold Mine for more than 20 years, with the project initially a single pit mine, evolving now to a predominantly underground operation, employing 5,700 employees and contractors.
Earlier this year, the Government of Tanzania recognized AngloGold Ashanti’s contribution to the economy of the country, awarding it for its outstanding performance in a number of areas, including environmental and safety performance, corporate social investment, the best taxpayer in the mining sector, the runners up in local business content and overall best performer in the mining sector in Tanzania in 2019/2020.
Geita Gold Mine
Geita, one of AngloGold Ashanti’s flagship mines, is located in north-western Tanzania in the Lake Victoria goldfields of Mwanza region, about 120km from Mwanza and 4km west of the town of Geita. It has been in operation as a large-scale mine since 2000.