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NigeriaAn Outlook on the Mining Industry

Gbenga OjoVenmyn Advisory & Valuation

Independence you can trust

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Nigeria Geology

ExplorationDevelopment

MiningCapability

Leadership

Clients Infrastructure

Venmyn DeloitteNigeria - A Highlighted Summary

Oil and gas

Coal

Gold

Iron ore

Uranium

Gemstone

Columbite and tantalite

Limestone

Clay and kaolin

Phosphate

Salt

Matured oil & gas sector

Untapped mining sector

Willing government

Available resources

Under-developed assets

Abandoned mine

Dynamic economy

Technical and scientific services

Reporting

Independent mineral asset valuation

Strategy

Financial services

Funding options

Public clients

Private clients

Investors

Venmyn Deloitte

Deloitte Nigeria

Deloitte Consulting


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Venmyn DeloitteNigeria - Notes


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Roads

Rivers

Towns

National Boundaries

Provincial Boundaries

Venmyn DeloitteNigeria - Country Infrastructure

Nigeria

Niger Chad

Cameroon

Benin

Benin City

Owerri

Calabar

Makurdi

Port Harcourt

Ondo

Sokoto

Kano

Kaduna

Minna

Ilorin

Jos

Bauchi

Maiduguri

Yola

Niamey

Malabo Yaoundé

Porto- Novo

Lagos Enugu

Abeokuta Ibadan

Ikeja

Abuja

Gulf of Guinea

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8°

4°

4° 12° 8°

0 200kmScale

River Niger


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Economy and Infrastructure of Nigeria

The Nigerian economy is the largest in Africa with a Gross Domestic Product (GDP) of 1.05

trillion and is well on track to becoming one of the 20 largest economies in the world by 2020.

Nigeria's economy is critically dependent on products and services generated by the natural

environment and to date has been largely driven by oil, with the hydrocarbon sector historically

accounting for 70% of government revenue and 96% of Nigerian exports. The slump in the oil

price has led to an imperative to diversify the economy and economic analysis recently showed

rapidly growing sectors such as telecommunications, banking, and the film industry contributing

to its GDP. Other economic drivers include agriculture, telecommunications, services and

mining, with the 2014 GDP per sector divided as follows:

4 agriculture 20.6%;

4 industry 25.6%; and

4 services 53.8%.

The domestic mining industry is underdeveloped, with the mining of minerals contributing only

0.3% of the nation's GDP Economic stability is influenced by unstable political circumstances,

leading to little new investment in mineral exploration and development.

Nigeria is divided into thirty six states and one capital city with the following transportation

infrastructure currently operable:

4 3,798km of railway; and

4 193,200km of roads - 28,980km paved and 164,220km unpaved.

Key Transport Corridors

4 Lagos - Seme border - Cotonou (Benin) - 178km;

4 Lagos - Sokoto - Birnin Kebbi (near the border to Niger) - 812km;

4 Lagos - Kano - Maradi (Niger) – 1,165km;

4 Lagos - Kano - Zinder (Niger) – 1,262km;

4 Lagos - Kano - 997km;

4 Lagos - Maiguri - N'Jamena (Chad) - 1816km;

4 Birnin Kebbi - Niamey (Niger) - 355km;

4 Calabar - Maiduguri - N'Jamena (Chad) - 1516km;

4 Calabar - Maiduguri – 1,253km;

4 Kano - Magaria - Zinder (Niger) - 256km;

4 Kano - Nguru Gashwa - Geidem - Maine Soroa - Diffa - 542km;

4 Kano - Katsina - Maradi (Niger) - 320km;

4 Maiduguri - Damaturu - Geidem - Maine Soroa - Diffa - 427km;

4 Maiduguri - Bama - Maroua (Cameroon) 260km; and

4 Cotonou - Parakou - Dosso - Gaya (Niger River) – Birnin Kebbi – 1,516km.

Power Plants

4 Nigeria has 23 power plants, producing electricity from natural gas, coal and

hydropower;

4 The installed capacity was 7,445MW at the end of December 2014; and

4 The country experienced an energy crisis in 2015, with only five of the 23 power

plants functional. This has been blamed on vandalism prior to the April 2015

elections as well as strike action by the Petroleum and Natural Gas Senior Staff

Association of Nigeria.

Airports

4 54 airports, of which 40 are paved.

Venmyn DeloitteNigeria - Country Infrastructure


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Mineral Deposits in Nigeria

Venmyn DeloitteNigeria - Mining Industry Outlook

1. Large Mineral Reserves Iidentified

4 40 different types of minerals identified in more than 500 locations

4 7 strategic minerals identified by Ministry of Mines and Steel Development

Commitment by the government

4 A separate ministry to handle the growth and development of this sector –

“Ministry of Mines and Steel Development”

4 Aggressive reforms to encourage investment in the sector

Focus on coal mining by the government

4 Thrust to develop this sector due to continued power shortage in the country and

large reserves

4 Thermal power-generating companies would takeover the responsibility of

developing coalmines since it would automatically, build fuel linkages with their

power generating plants

Gold an attractive opportunity for investors

4 Due to huge margins, gold is attracting huge attention from investors worldwide

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Key Facts

There is a national focus on developing the mining sector in Nigeria

Mineral Name (7 strategic Minerals) Approximate Mineral Reserve

COAL 2.7 billion tonnes

BITUMEN 27 billion barrel

LIMESTONE 3 trillion tonnes

IRON ORE 10 billion tonnes

BARITES 15 million tonnes

ZINC 5 million tonnes

GOLD 200 million ounces


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Venmyn DeloitteNigeria - Mining Industry Outlook

Favourable Policy Framework – Nigerian Minerals and Mining Act, 2007 & Regulations

2011

4 Emphases on private sector participation: a minerals and metals policy that makes

government a regulator or facilitator with the private sector as owner or operator

4 Attractive investment incentive: waiver of customs and import duties for plant, machinery

and equipment imported for mining operations, deferring the royalty paid to the

government, capital allowances of qualifying capital expenditure

4 Tax Holidays: three to five years’ tax holiday as applicable

4 Data Availability: readily available geosciences data for prospective investors (the entire

country covered by airborne geophysical survey)

4 Nigeria Institute for Mining & Geo Sciences: to provide trained manpower to support the

evolution of this sector

4 Minerals & Metals Promotion Unit : a minerals and metals promotion unit available to

attend to enquiries of would be investors to the Nigerian mining sector

4 Marketing of Nigeria as an emerging mining destination: companies have been to

mining conferences in South-Africa, Canada, China and Australia and have gone and met

with mining executives in these places

4 Investment in infrastructure: African Development Bank is partnering with the

government to develop the infrastructure in the country

4 Solid Minerals Development Fund: a fund has been established to be used for –

development of both human & physical capacity of Nigerian mining sector

An investor friendly policy framework has been created to boost this sector Ministry has developed a roadmap to monitor the growth of this segment

In October 2012, Nigeria approved a roadmap for the development of the solid minerals

and metals sector based on the value chain approach

Exploration Development Mining Processing Marketing

Objective

Imperatives

Impact

4 Evolve an efficient responsive and effective sector specific

policy framework and create a macroeconomic environment

conducive to facilitate development and exploitation

4 Short term - strengthen sector reforms to make Nigeria a

preferred destination for mining investment

4 Medium Term - increase mineral production in the country

through effective exploitation of mineral resources for local

use and export

4 Long Term - enthrone large scale mining operations in the

country such as delineating world class mineralized blocks

for concessioning to investors amongst others

4 Contribute at least 10% to the nation's GDP (currently at 1%)

4 Create about 3 million jobs by 2015 (data on actuals not

available)

4 Earn foreign exchange through export of mineral

commodities


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Venmyn DeloitteNigeria - Geology

Geology of Nigeria

4 The geology of Nigeria is dominated by Precambrian crystalline and sedimentary

rocks both occurring approximately in equal proportions. The crystalline rocks are

made up of the Precambrian basement complex and the Phanerozoic rocks which

occur in the eastern and north central region of Nigeria.

4 The Precambrian basement rocks consist of the migmatite gneissic –quartzite

complex dated Archean to Early Proterozoic (2700-2000 Ma). Other units include the

NE-SW trending schist belts mostly developed in the western half of the country and

the granitoid plutons of the older granite suite dated Late Proterozoic to Early

Phanerozoic (750-450Ma).

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0 200kmScale

Basalt, Trachyte, Rhyolite etc

Alluvium

Meander belt

Mangrove swamps

Abandoned beach ridges

Sombreiro-Warri Deltaic Plain

Coastal Plains Sands

Chad Formation

Ilaro Formation

Bende Ameki Group

Gwandu Formation

Ewekoro Formation

Kerri Kerri Formation

Sokoto Group

Abeokuta Formation

Lower Coal Measures

Asata Nkporo Shale Group

Awgu Ndeaboh Shale Group

Eze Aku Shale Group

Asu River Group

Non-marine facies-Gombe Sandstone

Marine facies

Bima-Yola Formation

Bima Sandstone-Yolde Formation

Rima Group

Nupe Sandstones

Illo Formation

Gundumi Formation

Granite

Rhyolite

Older Granite

Undifferentiated meta-sediments

Quartzite

Ibedan Quartzite-Schist

Undifferentiated Basement Complex

Kogi State

5° 9° 13°

5°

9°

13°

4 Sedimentary rocks fill up the basins which are vast depressions between basement

landmass.

4 The Benue Trough formed by rifting of the central West African basement along the

Central African Shear Zone at the start of the Cretaceous(145-66 Ma) aided by the

abnormal heat rising from the mantle plume which thinned and weakened the crust,

facilitating rifting.

4 Nigeria is rich in coal deposits, most of which lie in the Benue Trough which is

estimated to contain >5,000m of Cretaceous sediments and volcanics.

4 Nigeria's geology comprises three major litho-petrological components - the

basement complex, younger granites and sedimentary basins.


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Venmyn DeloitteNigeria - Commodity Distribution

Nigeria- Commodity Distribution

4 Nigeria is richly endowed with

vast amounts of minerals most

of which are yet to be exploited.

4 Abundant mineral deposits

occur in all the components of

Nigerian geology.

4 Solid mineral deposits of

economic significance occur in

different segments of Nigeria

and each of the 36 federating

states have a fair share of the

solid mineral inventory of the

nation.

4 T h e r e a r e t r e m e n d o u s

opportunities for investments in

the solid mineral sector of the

Nigerian economy.

BENIN

NIGER CHAD

CAMEROON

Gulf of Guinea

KainjiDam

LakeChad

Benue

B

B

B

B

B

B

MM

M

W

W

W

W

W

W

X

X

X

X

X + +

+

+

P

P

Bis

Mo

Ms

Ms

R

R

R

Ilm

Ilm

R

B

B

B

B

B

Benin City Enugu

Makurdi

Ondo

Sokoto

Kano

Kaduna

Minna

Ilorin

Abeokuta Ibadan

Ikeja

Jos

Bauchi

Maiduguri

Yola

Port Harcourt

Calabar

Owerri

Lagos

0 200kmScale

Iron Ore

Gold

Diamond

Chromite/Nickel

Uranium

Copper

Gemstone

Talc/Asbestos

Manganese

Silver

Bismuth

Cassiterite (Tin Ore)

Columbite

Tantalite

Wolframite

Magnesite

Molybdenite

Rutile

Lead/Zinc

Ilmenite

Gypsum

Coal

Limestone

Clay/Kaolin

Bentonite

Barite

Phosphate

Salt

M

B

W

X

+

P

Bis

Ms

Mo

R

Ilm

B


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Venmyn DeloitteNigeria - State Wise Mineral Deposits in Nigeria

STATES COMMERCIALLY AVALIABLE MINERALS

Abia Glass Sand, Limestone, Salt, Shale, Ball Clay, Granite, Galena, Marble Laterite, Bentonite, Phosphate, Kaolin, Pyrite, Feldspar, Petroleum, Lignite, Gypsum, Sphalerite, Clay.

Adamawa

Feldspars, Flourspar, Marble, Gypsum, Magnesite, Tantalite, Rock Crystal, Laterites, Topas, Sandstones, Mercury, Glass Sand, Zircon, Spinel, Emerald, Graphite, Beryil,

Tourmaline, Mica, Iron Ore, Clay Minerals, Diatomite, Coal, Garnet, Aquamarine, Gold Dust, Zoisite, Cassaterite, Agates, Amethyst Chalcopyrite, Kaolin, Limestone,

Chalcedeny, Onyx, Barytes, Zinc, Tin, Uranium, Quartz, Mica, Diamond, Wolframite, Calumbite, Platinum, Ruby

Akwa Ibom Clay, Glass Sand, Salt, Silica Sand, Granite, Coal, Petroleum, Natural Gas, Kaolin, Limestone, Lignite.

Anambra Clay, Iron Stone, Natural Gas, Petroleum, Sand Stone, Kaolin, Pyrite, Lignite.

BauchiKaolin, Trona, Gypsum, Cassiterite, Mica, Clay, Tantalite, Galena, Iron Ore, Gemstone, Sphalerite, Silica Sand, Barite, Columbite, Zinc, Lead, Muscovite, Quartz, Tin,

Glass Sand, Monazite, Feldspar, Graphite, Wolfram, Coal, Agate, Tentalum, Rutile, Tungsten, Copper, Talc, Limenite, Ziron.

Bayelsa Salt, Petroleum, Natural Gas, Silica Sand, Bentonite, Crude Salt, Petroleum, Limestone, Glass Sand.

BenueGemstone, Barites, Feldspar, Marble, Mica, Silica Sand, Quartz, Galena, Lead, Zinc Ore, Clay, Crushed And Dimension Stone, Fluorspar, Wolframite, Bauxite, Shale,

Magnetie, Limenite, Brenite

BornoSilica Sand, Natural Salt, Sapphire, Topaz, Mica, Quartz, Gypsum, Uranium, Iron Ore, Megnesite, Feldspar, Granite Aquamarine, Nepheline, Limestone, Kaolin, Bentonite,

Laterite, Refractory Clay, Trona, Gold, Tin, Potash.

Cross RiversSalt Limestone, Coal, Maganese, Mica, Limenite, Gold, Quartz, Glass Sand, Tourmaline, Petroleum, Natural Gas, Kaolin, Tin Ore, Sharp Sand, Spring Water, Salt Deposit,

Talc, Granite, Galena, Lead, Zinc, Tin Ore, Muscovite, Uranium, Barite.

Delta Kaolin, Lateritic Clay, Gravel, Silica Sand, Natural Gas, Petroleum, Ball Clay, Bauxite, Granite, River Sand, Clay, Spring Water.

Ebonyi Lead, Zinc Ore, Salt, Limestone, Ball Clay, Refractory Clay, Gypsum, Granite.

Edo Chamockite, Copper, Gold, Marble, Granite, Gypsium, Petroleum, Dorite, Lignite, Limestone, Ceramic Clay.

Ekiti Clay, Chamokite, Quartz, Lignite, Limestone, Granite, Gemstone, Bauxite, Cassiterite, Clumbite, Tantalite, Feldspar, Kaolin.

Enugu Laterite Clay, Crude Oil, Kaolinitic Clay, Iron Ore, Glass Sand, Petroleum, Gypsum, Coal, Silica Sand Ceramics.

Gombe Graphite, Kaolin, Limestone, Silica Sand, Uranium, Coal, Halites, Clay, Gypsum, Diatomite, Granite

Imo Crude Oil, Shale, Natural Gas, Kaolin, Laterite Sand, Limestone, Salt, Marble.

Jigawa Glass Sand, Granite, Laterite Clay, Silica, Kaolin, Iron Ore, Qurtz, Potash, Talc, Limenite, Gemstone, Columbite.

Kaduna Muscovite, Granite, Gold, Manganese, Clay, Graphite, Sand, Zircon, Kyanite, Tin Ore, Limenite, Cemstone, Columbite


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Venmyn DeloitteNigeria - State Wide Mineral Deposits in Nigeria

KanoClay, Laterite, Cassiterite, Columbite, Llmenitegalena, Phyrochlorite, Kaoline, Gemstone, Silica, Tin Ore, Monazite, Wolframite, Thorium, Granite, Hyalite, Kaolin,

Beryl, Amethyst, Gold.

KatsinaGold, Manganese, Lateritic, Clay, Feldspar, Blacktourmaline, Amethyst, Quartz, Kaolin, Mica, Gypsum, Silimanite, Clay, Granite, Sand, Uranium Asbestos, Tourmalin,

Serpentine (Chresolite Asbestos), Chromites, Limenite, Diamond, Graphite, Iron Ore, Potash, Silica Sand.

Kebbi Salt, Iron Ore, Gold, Feldspar, Limestone, Quartz, Bauxitic Clay, Manganese, Kaolin, Mica.

KogiClay, Iron Ore, Gemstone, Marble, Limestone, Feldspar, Dolomite, Phosphate, Mica, Cassiterite, Granite, Ornamental Stone, Coal, Kaolin. Kwara:clay, Kaolin, Silicasand,

Quartz, Dolomite, Marble, Feldspar, Gold,t Antalite, Cassiterite, Granite, Limestone.

Lagos Silica Sand, Bitumen, Sharp Sand, Gravel, Petroleum, Laterite.

Nassarawa Cassiterite, Gemstone, Amethyst, Beryl, Cherysolite, Emerald, Gamet, Sapphire, Topaz, Barites, Galena, Monazite, Zicron, Glass Sand, Coal .

Niger Bell Clay, Kaolin, Limestone, Granite, Glass Sand, Iron Ore, Red Clay, Feldspar, Silica Sand, Quartz, Asbestos, Marble, Talc, Gemstone.

Ogun Kaolin, Feldspar, Silica Sand, Mica, Granite, Clay, Phosphate, Gypsum, Limestone, Quartz, Tar Sand.

Ondo Marble, Gold, Gemstone, Diorite, Lignite

Osun Clay, Granite, Talc, Dolomite, Feldspar, Quartz, Limestone, Mica,

Oyo Clay, Feldspar, Granite, Limonite, Iron Ore, Kaolin, Quartz, Talc, Marble, Dolomite, Tourmaline, Aquamarine, Amethyst,

Plateau Monazite, Columbite, Feldspar, Clay, Cassiterite, Gemstone, Kaolin, Dolomite, Mica, Zicron, Marble, Limonite, Barite, Quartz, Talc, Galena.

Rivers Petroleum, Natural Gas, Silica Sand, Glass Sand, Clay

Sokoto Silica Sand, Clay, Salt, Limestone, Phosphate, Gypsum, Kaolin, Laterite, Potash, Granite,

Taraba Flurspar, Gamet, Tourmaline, Sapphire, Zicron, Tantalite, Columbite, Cassiterite, Barite, Gelena, Limestone, Laterite, Calcite, Bentonitic Clay

Yobe Salt, Trona, Diatomite, Clay, Gypsum, Kaolin Silica Sand, Limestone, Epsomite, Iron Ore, Shale, Uranium, Granite, Bentonic Clay

Zamfara Gold, Alluvia Gold, Granite, Chromites, Chamorckite, Clay, Feldspar, Spring Water.

FCT Limestone, Kaolin, Granite, Marble, Feldspar, Mica, Dolomite, Clay, Sand, Talc.

STATES COMMERCIALLY AVALIABLE MINERALS


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Venmyn DeloitteNigeria - Coal Deposits

Nigeria – Coal Deposits

Nigeria has vast amounts of unexploited coal resources which the government intends to utilise

in order to increase Nigeria's electricity generating capacity. There are virtually 3 billion tonnes of

indicated reserves in 17 identified coal fields and over 600 million tonnes of proven reserves. The

coal seams were first discovered in outcrop along the eastern boundary of the Anambra Basin

early in the 20th Century. The Anambra Basin is well known for the presence of coal and hosts

five coal seams.

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3Anambra Coal BasinAnambra Coal Basin

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1. Maiganga Project (Federal Republic of Nigeria)

4 Reserves development stage

4 Exploration completed by Ashaka Cement Co in May 2012

4 Estimated reserves of 760Mt

4 The Maiganga deposit occurs in six seams intercepted at depth of 18m to 50m,

with a varying thickness of 0.2m to 0.4m

2. Obi-Lafia (Federal Republic of Nigeria)

4 Reserves Development Stage

4 Metallurgical coal

4 Estimated reserves of 128.3Mt

4 Exploratory drill program completed by the National Steel Raw Material

Exploration Agency in May 2012

3. Lamza-Chikila (Federal Republic of Nigeria)

4 Exploration stage

4 Metallurgical coal

4. Okpara

4 Sub-bituminous coal


4 Depth of coal is 180m

4 Underground mining

5. Onyeama



4 Underground mining

6. Ogboyoga



4 Depth of coal is 20-100m

4 Surface and underground mining

7. Ezimo





8. Inyi





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6 7

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22Independence you can trust

Venmyn DeloitteNigeria - Iron Ore

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Kotonkarfe Project (Federal Republic of Nigeria)


4 Reserves & Resources of 850Mt

4 Grade of 52% Fe

Agbaja Kogi Iron Ltd Project ( )

4 stageFeasibility


4 Grade of 41% Fe

Itakpe Project (Federal Republic of Nigeria)



4 Grade of 40% Fe

Ajabanoko Project (Federal Republic of Nigeria)



4 Grade of 36% Fe

Gidan Buzu Project (Federal Republic of Nigeria)



4 Grade of 46% Fe

Lamba Project (Federal Republic of Nigeria)



4 Grade of 70% Fe

Gyaza Project (Federal Republic of Nigeria)



4 Grade of 46% Fe

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Iron Ore Projects

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Venmyn DeloitteNigeria - Gold

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Gandau 1 Gold Licence (EcoPhoenix)4 lies in the Maru Schist Belt4 the host rocks are hard meta-

volcanics

EcoPhoenix Gold Projects4 Extensive Artisan Mining Industry4 significant production from

artisanal and colonial mining and gold grades from 5-1,000g/t

Maru

Anka

Au Grade = 123-6329ppb

Malele

Au Grade = 30ppm

Tsohon Birnin Gwari

Variable gold mineralisation

reaching 5-100gm/t

Kwaga

Variable gold mineralisation

reaching 5-100gm/t

Gurmana

Bin Yauri

Gold grades vary between

5-15ppm in vein materials

Okolom-Dogungaji

Iperindo

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Zam

fara In Maru-Zuru Schist Belt, mineralisation

is composed of gold-quartz-sulhide veins and

occurs as structurally controlled primary veins

In Kushaka Schist Belt, the gold mineralisation

occurs in reefs between 3-7km long with

associated minerals such as pyrite, sphalerite,

galena and magnetite

Situated in the southern part of the Kushaka

Schist Belt. Gold-quartz sulphide veins occur in

amphibolite and gneiss with pyrite, chalcopyrite

and galena

Mineralisation in the Zuru Schist Belt occurs in

sulphide-carbonate veins in a fault zone at the

contact of granodiorite batholith

In Egbe-Isanlu Schist Belt, south west Nigeria,

gold is found in quartz veins hosted I N-S, NNE-

SSW trending shear zones as gold sulphide reef

system with a total length of 3km

Kaduna

Kebi

Nig

er

Kogi

Gold Projects


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Venmyn DeloitteNigeria - Limestone

Nigeria – Limestone

Limestone occurs only in the sedimentary basins in Nigeria. Abundant and economically

viable limestone resources are found mainly in the Benue Trough. The majority of limestone

deposits in the country are used for the manufacture of cement. Cement Plants are located

near quarries of suitable limestone or marble deposits.

Cement Plants:-

0 200kmScale

5° 9° 13°

5°

9°

13°

Gombe

Bauchi

Nassarawa

Taraba

Benue R

Benue

Ebonyi

C/River

AbiaImo

EnuguEdo

Kogi

FCTNiger

KwaraOyo

Ogun

Niger R

Sedimenatary Basin

Basement Complex

Rivers

Marble

Limestone

Ashaka Cem Co Plc

(Lafarge)

4 Production capacity: 1 MMT

WAPCO

(Lafarge)

4 Production capacity: 4.5 MMT

Dangote Cement Works Ltd

(Dangote Cement)

4 Production capacity: 6.0MMTPA

Benue Cement Company

(Dangote Cement)

4 Production capacity: 4.0MMTPA

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4


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Nigeria - Gemstone

4 Nigeria is enriched in multiple coloured gemstones

4 Gemstone mining has flourished in various parts of Plateau, Kaduna and

Bauchi states for years. Gemstones identified for commercial development

include:-

8 Aquamarine

8 Tourmaline

8 Emerald

8 Sapphire

8 Garnet

8 Ruby

4 Other gems of less value include;

8 Topaz

8 Amethyst

8 Floride

8 Zircon

8 Morganite

8 Lolite

8 Kunzite

Sapphire

Ruby

Fluorite

Zircon

Corderite

Amethist

Beryl

Emerald

Tourmaline

Aquamarine

Topaz

Spessartite

Morganite

Kunzite

Quartz

Venmyn DeloitteNigeria - Gemstones


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Venmyn DeloitteNigeria - Bitumen

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Nigeria - Bitumen

In Nigeria, bitumen occurs on the surface and sub-surface. Bitumen deposits are found in Lagos

State, Ogun State, Ondo State, and Edo State. Most bitumen used for road construction in

Nigeria is currently imported.

Bitumen Deposits


Alluvium

Meander belt

Mangrove swamps




Chad Formation

Ilaro Formation

Bende Ameki Group

Gwandu Formation

Ewekoro Formation


Sokoto Group

Abeokuta Formation

Lower Coal Measures



Eze Aku Shale Group

Asu River Group


Marine facies

Bima-Yola Formation


Rima Group

Nupe Sandstones

Illo Formation

Gundumi Formation

Granite

Rhyolite

Older Granite


Quartzite



Kogi State


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Venmyn DeloitteNigeria - Tantalite

Nigeria – Tantalite

Nigeria tantalite endowment is impressive. The reserve is estimated at 25 metric tons. Tantalite is

one of the solid minerals being aggressively marketed to both local and foreign investors for

exploration and exploitation owing to its unique potential economic value

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Tantalite Deposits


Alluvium

Meander belt

Mangrove swamps




Chad Formation

Ilaro Formation

Bende Ameki Group

Gwandu Formation

Ewekoro Formation


Sokoto Group

Abeokuta Formation

Lower Coal Measures



Eze Aku Shale Group

Asu River Group


Marine facies

Bima-Yola Formation


Rima Group

Nupe Sandstones

Illo Formation

Gundumi Formation

Granite

Rhyolite

Older Granite


Quartzite



Kogi State


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Venmyn DeloitteNigeria - Major Mining and Solid Minerals Companies Operating in Nigeria

NAME OF FIRM COUNTRY OF ORIGIN MINERALS NATURE OF OPERATIONS

Tropical Mines Limited Australia Gold Exploration

Savannah Mining Limited Nigeria/Australia Gold Exploration

C G C Nigeria Limited China Gold Exploration

Erin Resources Limited Australia Gold Exploration

Dangote Cement Plc Nigeria Limestone/Clay Quarying

Kenlyn Global Resources Limited Japan Manganese Exploration

Kogi Iron Limited Australia Iron Ore Exploration

Australian Mines Limited Australia Gold Exploration

Zuma Energy Nigeria Limited Nigeria/Ukarine Coal/Gold Mining/Exploration

AshakaCem Plc Nigeria Nigeria/France Limestone-Coal Quarying/Mining

Segilola Gold Limited Australia Gold Mining

Royal Salt Limited India Lead/Zinc ore Mining & Development

Multiverse Resources PLC Nigeria Lead/Zinc ore Quarying/mining

Tongyi Allied Mining Limited China Cassiterite & Columbite Exploration / Mining

Earthstone Nigeria India Iron Ore Exploration/ Mining

West African Ceramics India Clay/Quartz Quarrying

Julius Berger Nigeria Plc Nigeria/Germany Granite Quarrying

Crushed Rock Industries Limited Germany Granite Quarrying

Wapco/Largfage Nigeria Nigeria/France Limestone/ Clay Quarrying

Iss - Hass Nigeria Limited Nigeria/China Gold Exploration


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36

Venmyn DeloitteNigeria - Capability

Exploration nioatluvat EjecPro

TECHNICAL / SCIENTIFIC SERVICES

§ Statistical Design of Exploration

Programmes

§ Independent Sign-Offs

§ Sample Trail Audits

§ 3D Geological Modelling

§ Mineral Resource Estimation

§ Technical Trail Audit

§ Technical Environmental, Health,

Safety and Community Statements

§ Structural Modelling

§ NI 51-101 Oil and Gas Reports

REPORTING - Compliance with all Global Reporting Codes and Securities Commissions

§ Prospectivity Reviews

§ Listing Documentation and Readiness

Appraisals

§ On-Going Reporting

§ Independent Sign-Off on Press

Releases

§ Sarbannes-Oxley Compliance Checks

§ Investor Promotional Documentation

§ Competent Persons’ Reports

§ Techno-Economic Reports

§ NI 43-101 Independent Technical

Reports

§ Expert Reports

§ Full Technical Independent Reviews

and Report Compilation

§ Annual Reporting

§ Compliance Gap Analysis

Level Of Confidence

Fill the gaps, find the value...

Pro

ject

Valu

e

§ Pit Optimisation

§ Reserve Estimation

§ Preliminary Economic Assessment

§ Preliminary Feasibility Studies

§ Feasibility Gap Analysis

§ Database Verification

§ Technical Environmental, Health, Safety

and Community Scoping and Feasibility

Studies


§ Definitive Feasibility Study

Management and Review

§ Mass Balances

§ Cut-Off and Pay Limit Calculations

§ Metallurgical Studies and

Statements

§ Technical Environmental, Health, Safety

and Community Feasibility Studies


§ Macro Analysis of Commodities,

Markets and Trends

§ Cost Analysis

§ Support Structure Assessment

§ Technical Environmental, Health, and

Safety Compliance Audits

§ Equator Principle Reviews


ytilibisaeF

uctid oo nrP


37



38

Venmyn DeloitteNigeria - Capability

Exploration

STRATEGY

§ Strategic Portfolio Assessment

§ Market and Commodity Reviews

INDEPENDENT MINERAL ASSET VALUATION

§ Financing Purposes

§ M&A Purchase / Sale of Mineral

Property

§ Insurance Purposes

§ Statutory Filing and Reporting



Property



§ Feasibility Studies and Technical and

Financial Due Diligence

§ Purchase Price Allocations (in

conjunction with corporate finance)



Property



§ Feasibility Studies and Technical and

Financial Due Diligence

§ Purchase Price Allocations (in

conjunction with corporate finance)



Property



§ Fair Value Impairment Testing

§ Mergers and Acquisitions*

§ Deal Structure Assessment

§ Independent Techno-Economic

Due Diligence

§ Mergers and Acquisitions



Due Diligence

§ Mergers and Acquisitions



Due Diligence

FINANCIAL SERVICES - Independent Financial Reporting in Compliance with all International Reporting Codes (SAMVAL, VALMIN, CIMVAL)

§ Mineral Asset Valuation

§ Commodity Valuation Curves

§ Corporate Finance


§ Fair and Reasonable Statements

§ Fairness Opinion

§ Oil & Gas Valuation Curves

§ Economic Evaluation of Project

Options

§ Capital Efficiency Studies*

§ Risk Assessment*

§ Decision Analysis*

§ Independent Valuation Reports

§ Capital Gains Tax Certificates


§ Full Economic Evaluation

§ Tax Structure Advice

§ Corporate Finance*

§ Risk Assessment*

§ Maximisation of Capital Return*

§ Business Case Robustness *

Review


§ Quality of Capital Investment

§ Risk Return Analysis

§ Tax Structure Advice

§ Corporate Finance*

§ Risk Assessment*

§ Maximisation of Capital Return*

§ Business Case Robustness *

Review

FUNDING OPTIONS

§ Access to Capital through Debt and *

Equity

§ Commodity Backed Finance*

§ Private Equity Markets Advice*

* IN CONJUNCTION WITH GLOBAL DELOITTE ADVISORY SERVICES


Equity




Equity




Equity



Project Evaluation Feasibility Production


39



40

AKINTOLA WILLIAMS DELOITTE

Mike Vincent - Deloitte West Africa

+234 1 271 7800

[email protected]

AKINTOLA WILLIAMS DELOITTE

Francis Anatogu - West Africa Energy & Resource Leader

+234 1 904 1727

[email protected]

VENMYN DELOITTE

Andrew de Klerk - Exploration Manager

+27 (0)11 517 4167

[email protected]

Venmyn DeloitteNigeria - Leadership and Key People

Leadership and Key People

VENMYN DELOITTE

Andy Clay - Managing Director

+27 (0)11 517 4205/6

[email protected]

DELOITTE CONSULTING

Andrew Lane - Energy & Resources Leader, Director, Monitor

Deloitte

+27 (0)11 517 4221

[email protected]

VENMYN DELOITTE

Gbenga Ojo - Manager (Venmyn Deloitte West Africa Leader)

+27 (0)11 517 4205/6

[email protected]


41



42

www.venmyndeloitte.com

+27 (0)11 656 1450 | P.O. Box 782761, Sandton, 2146, South Africa | Deloitte

Place, The Woodlands, Building 33, 20 Woodlands Drive, Woodmead, Sandton.

Compiled by Technigraphics

[email protected] | +27 (0)11 517 4205/6

Andy Clay - Managing Director

+27 (0)11 517 4205/6

[email protected]

Gbenga Ojo

+27 (0)11 517 4205/6

[email protected]

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Touche Tohmatsu Limited and its member firms.

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