Metalex acquires South African diamond exploration project
Metalex Ventures, the Toronto Stock exchange-listed exploration company, has acquired a promising diamond exploration project in South Africa.
In a statement, Metelex says it has reached an agreement to acquire an interest in the 3,373-hectare Viljoenshof prospecting license from Invest in Property 126 (IIP).
The license area, within 30kms of the famous Kimberly Diamond Mines, is last known to have been explored by DeBeers in the 1960s, with two kimberlite pipes, two kimberlite dykes, and two kimberlites of unknown type discovered.
DeBeers had unsuccessfully applied for the exploration license over this area again in 2014, as IIP applied shortly beforehand and was awarded the license, the statement explains.
Indicator minerals collected from the kimberlite indicate that they contain rare G10-10 garnets, which support the presence of high-grade kimberlite, it adds.
The agreement with IIP entails a staged earn-in for Metalex, with the company set to first fund £12,348 to covert the prospecting license into a mining lease to acquire a 20 percent interest. ASR Consultants has already been engaged by Metalex to carry this out.
The next stage will involve Metalex funding an airborne geophysical survey and testing known kimberlites and new targets. Completion of this and a £7,485 payment to IIP will earn Metalex a further 15 percent interest.
The third stage will be the drilling of a minimum of 12 holes to test kimberlites which show economic potential. Completion of this work and the payment of another £7,485 to IIP will earn Metalex a further 15 percent interest, or 51 percent total interest.
For the fourth stage, Metalex will have to fund a bulk sampling of a kimberlite – this, along with a payment of £74,868 to IIP will earn it an additional 10 percent of interest (61 percent in total).
Once the feasibility study for the project has been completed, the company will earn a final nine percent interest – bringing its total interest up to 70 percent. Following a positive decision to proceed with mine construction, a further £74,868 will have to be made to IIP.
The joint venture will be subject to a 10 percent net profits royalty interest in favour of Verdi Farms trust, the statement adds.
“Metalex looks forward to advancing this sought-after project, located close to the first kimberlite mine in the world,” said Chad Ulansky, president and CEO of Metalex Ventures.
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.