African Minerals projects will change the face of Sierra Leone
African Minerals Limited the largest iron ore company in Sierra Leone is now at an advanced stage in preparing the infrastructure that will see them kick start the exportation of iron ore to European and Asian Countries.
The railway line from Tonkolili right down to Pepel and Tagrin is at an advanced stage since the arrival of the materials few weeks ago. The Tagrin port construction also is well ahead on course for completion.
The deal between AML and Shandong Steel is still on as Shandong Steel has completed their due diligence and AML is waiting for them so they can complete the deal before operations can start.
Also AML has been doing well in the Stock market where they sold some shares to raise funds due to the delay of Shandong Steel. The company’s management is very optimistic that come next year AML will be ready in time to start export.
Presently more Sierra Leoneans are gaining employment as the company expands its operations. The conditions of service for workers have always been good and the environmental condition they are working under has also been improving as the company wants to meet all local and international standards of operations.
The Company has focused its funding and resources in 2009 on its flagship Tonkolili Iron Ore project, the Marampa Iron Ore project (in conjunction with Cape Lambert Resources Limited) and the Ports and Railway Infrastructure Project.
The Company continues to pursue value adding strategic alliances with third parties in the core commodities of iron ore and coal, but has scaled back activities at its diamond, base metals and uranium exploration projects.
Sierra Leone — Lignite Exploration (Option with Pinnacle Group Assets (SL) Limited)
The Company entered into an option agreement in December 2008 with Pinnacle Group Assets (SL) Limited, a privately held company registered in Sierra Leone, which holds the rights to certain coal and other mineral exploration licences in Sierra Leone. The purpose of exploration is to identify potential sources of coal for power generation for the Company’s iron ore projects in Sierra Leone and for distribution to the national grid of Sierra Leone.
The Company commenced early stage lignite exploration activities on these licences, which cover a 150 km strike length in the Bullom Group series of sediments north and south of Pepel Port.
Sierra Leone — Gori Hills Nickel-Cobalt
The Gori Hills prospect is a 20 km2 target where a nickel-cobalt anomaly was identified by reconnaissance stream sediment sampling. Initial surface trench results from this anomaly returned an average grade of 0.73% nickel and 0.061% cobalt over an interval of 56m between depths of 1m and 3.2m.
Sierra Leone — Lovetta Uranium
The Lovetta uranium anomaly, located in eastern Sierra Leone near the Liberian border, comprises an area of 160 km. In the immediate project area, seven anomalies of over 10 ppm uranium and over 450 counts per minute uranium have been identified by a programme of soil and scintillometer sampling over a 4km strike length. A trenching programme has delineated up to a 150m strike length and widths of 66m of anomalous uranium and thorium and is open in both directions.
Sierra Leone — Laminia Gold
The Laminaia gold project has been defined by a 14km by 1.5 km north-south gold trend. Within this broad trend three discrete anomalies have been identified over 100 ppb gold (peak grade of 680 ppb gold) with an overall strike length of approximately 2 km. Rock chip samples of quartz float returned an average grade of 117 g/t gold.
Sierra Leone — Diamonds
The results of follow-up kimberlite exploration sampling activities along with aeromagnetic survey data have been used to refine potential drilling targets for hard rock diamonds exploration. Thirteen high priority aeromagnetic targets, with coincident positive kimberlite grains, and 10 high priority drainage targets have been defined to form the basis of future kimberlite drilling programmes.
Canada — White River Resources Inc.
Through its wholly owned subsidiary, White River Resources Inc., the Company holds mineral claims and rights to earn-in mineral claims in the Canadian Yukon province on the Kluane ultramafic belt, an area that the Company believes has significant nickel potential. The scale of the exploration programme to date has not been sufficient to conclusively ascertain the prospectivity of the mineral claims.
Cape Lambert — Marampa
African Minerals disposed 100% of its interest in Marampa Iron Ore Limited in return for up to 19.9% of Cape Lambert Resources Limited’s (“CLIO”) issued share capital in November 2009. Cape Lambert Resources is an Australian based exploration and development company with interests in a geographically diverse portfolio of mineral assets and investments in several exploration and mining companies. This sale of Marampa enables African Minerals to focus entirely on its 5.1Bnt iron ore projects whilst benefiting from additional exposure to CLIO’s diverse portfolio of high quality resource assets and consolidates its relationship with CLIO. African Minerals can maintain and benefit from an indirect exposure to Marampa without requiring it to fund the construction and development of the Marampa project.
As at 31 December 2009, African Minerals Limited owned 85,569,934 shares (representing 15.14% of the total number of issued shares) in Cape Lambert Resources Ltd (ASX: CFE) with a market value of US$40,503,929.Baobab Resources
Baobab Resources plc is a Mozambique focused iron ore, base and precious metal explorer. The Company has a large land-holding covering five discrete project areas. The Tete iron ore asset is emerging as Baobab’s flagship project.
As at 31 December 2009, African Minerals Limited owned 11,425,000 shares (representing 7.19% of the total number of issued shares) in Baobab Resources plc (AIM: BAO) with a market value of US$1,139,179.
West African Diamonds
West African Diamonds plc is incorporated in England and is a diamond focused explorer with operations in Sierra Leone and Guinea. Formed from the West African assets of AIM listed African Diamonds plc and recently acquired additional licences in Guinea, West African Diamonds contains a portfolio of development, advanced and early exploration assets across West Africa.
As at 31 December 2009, African Minerals Limited owned 8,700,000 shares (representing 9.67% of the total number of issued shares) in West African Diamonds plc (AIM: WAD) with a market value of US$563,994.
Health, Safety, Environmental and Security (HSES) Policy Over and above its legal responsibilities African Minerals has a primary and continuing commitment to protect the environment, the health, safety and security of its employees and of all personnel involved in or affected by its activities. This commitment is reflected in African Minerals’ corporate HSES policy which sets specific Standards relating to HSES performance which are mandatory and applicable to all African Minerals’ activities. Responsibility for compliance with our health and safety standards lies with the Chief Executive Office, and all African Minerals’ employees.
The Company is committed to carrying out all its operations in a fully responsible manner. In 2009 African Minerals achieved a good safety performance and we are committed to improving this as we move forward.
Environmental Policy African Minerals strives to be a global leader in responsible mining. It is our priority to try to safeguard the environment, protect the safety of our employees, and improve the quality of life in the communities and countries in which we operate.
In 2009 the Company continued to make progress in these areas. The project’s environmental and social impacts work towards compliance with the Equator Principles, an internationally recognised set of benchmarks for managing the impacts of large projects.
By Austin Thomas in China
