The African goldrush continues




The African continent has been famous for gold production since 1886, when prospectors found several gold-bearing reefs around present-day Johannesburg in South Africa. The area caused a boom in production, and for over a century, South Africa remained the world’s dominant gold player, producing 30% of the world’s gold for decades. Goldrange Resources, a Canadian junior gold exploration company has joined the rush to acquire gold deposits on the African continent.

Although South Africa still holds large quantities of untapped gold ounces, it is no longer a top producer. West Africa’s gold mining industry, led by Ghana, Mali and Burkina Faso, currently produces nearly twice as much gold as South Africa. The majority of the 30 West African mines which have been developed in the past 20 years, have targeted shallow easily mineable oxide material and the deeper sulphide ore is still in the ground. Ghana alone mined an impressive 130 metric tons of gold in 2021 and is now the sixth-largest gold-producing country in the world. However, it isn’t just Ghana that is mining large quantities; it is happening all over the continent. Three of the five largest gold mines in Africa are situated in West African with the other two located in the Democratic Republic of Congo and Tanzania.

According to a recent report, there are 21 African countries with gold mining activities which produced around 633 metric tons in 2020. As the gold price continues to rise, there is an increase in gold exploration on the continent with the activity of mergers and acquisitions expected to increase.
Smaller, more agile resource companies are also entering or expanding into the continent to take advantage of this potential. A great example is Goldrange Resources Corp, a Canadian company operating in the gold sector in Africa.
Goldrange’s CEO, Helen Ruth Pein, has over 30 years of experience as an economic geologist, with a core focus on Africa. So she knows the region well. “Goldrange was founded in 2021 by a team with a lot of experience in exploration and mining development in Africa” she says.

“Gold mining is well established on the African continent and there remains an endowment of large unmined resources. Junior exploration and resource companies like Goldrange are tapping into that and exploring these opportunities. For example, we currently have three gold projects in two countries.”

“Two of these projects are well advanced and situated in Ivory Coast’s prospective yet under-explored Birimian greenstone belt. Both properties, La Debo and Tienko, are brownfields projects which have undergone extensive exploration. The flagship La Debo project supports a PEA covering only a small portion of the prospective licence area. A diamond drilling programme is currently underway at La Debo to grow the initial 1 M oz resource. Seven additional target areas have been identified by systematic exploration and are drill ready.”

Our Tanzanian Golden Heights project is situated in the world renown Lake Victoria Goldfields, home to numerous world class multimillion ounce gold mines. This project was the site of Tanzania’s largest gold rush in 1997 and has never been drill tested at depth. The geological characteristics are very similar to the proximal Bulyanhulu mine that is home to a 20M ounce discovery.”

“Tanzania is already well established as a gold producer, and the new government is moving toward mining-friendly taxation. West Africa on the other hand is currently regarded as the darling of gold exploration and development in Africa. Ivory Coast is an exciting mining destination and has one of the fastest growing economies in Africa with a 9% economic growth rate. The 2014 revised Mining Code is robust and very conducive to foreign investment.

The continent is booming, but to thrive in such a competitive environment, companies need to leverage experience. Pein, for example, was a director of highly successful Pangea Exploration for almost 20 years and an integral member of the small team responsible for a number of world class resource discoveries in Africa.

“Although Africa holds a lot of potential, it can be challenging and you need to know what you are doing,” Pein says. “The obstacles you face in one location might be completely different from what you would find in another. To succeed, you need an experienced management team as well as highly skilled geologists with African experience to navigate and find the best opportunities. This is why the team we selected at Goldrange Resources is so crucial.

“Experience means they also know how to operate in a way that supports sustainability and minimizes impact. Pein explains, “We’re committed to exploring responsibly and transparently. This includes environmental stewardship and establishing relationships with local communities. We firmly believe in following ethical corporate governance practices.”

The approach is proving successful. In addition to securing one brownfield, one advanced and one greenfield project within 14 months, all with multimillion ounce potential, Goldrange has raised nearly C$5 in financing. In addition, the company continues to identify value accretive inorganic growth opportunities.
Pein emphasised that “Whilst all three projects remain highly prospective in established gold mining jurisdictions, working in Africa can be tricky and sound ‘know-how’ complimented by hard work is required to realize each projects full potential”.

The resource sector in Africa has a lot of opportunities and is changing rapidly. It is thriving, but there remain considerable operating challenges to overcome to make a success of these prospects. “With the right team, expertise, and carefully selected projects, these hurdles can be easily overcome!” she concludes. (Africa.buisnessinsider.com)

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