mining sector paper_sierra leone

7/24/2019 Mining Sector Paper_Sierra Leone

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Mining SectorMining Sector

OverviewOverview

SIERRA LEONE

Prepared for INDABA 2004


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Emerging Pride of West Africa

Sierra Leone Minerals Sector Overview, prepared for INDABA 2004 2

LocationLocation


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Introduction

GeographyGeography


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Mining & EconomyMining & Economy

Introduction

Economy primarily based on agriculture and mining

Promulgation of Minerals Act (1927) led to formal industrial mining sector

Revenue from mining in the 1980s was around US$100m / yr

Government recognises vital future role of mining in economy

Mining contributes: 17% GDP, 70% Foreign Exchange and 15% revenue

Rapidly growing number of foreign direct investors


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GeologyGeology

Geology & Mineral Resources


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Resource BaseResource Base


Diverse and very rich mineral resource base

Heavy mineral sands, Diamonds, Bauxite, Gold, Iron Ore & Platinum

Significant discoveries in 1930s-40s; Iron Ore, Chromite & Diamonds

World class Sierra Rutile operation; low cost and very high grade

Highly prospective


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Major MineralsMajor Minerals


Titanium minerals from erosion of the Kasila Group granulites

Diamondiferous kimberlite pipes and dykes

Bauxites within the extensively weathered Kasila Group

Gold within the major greenstone belts

Platinum in streams around the Freetown layered igneous complex

Iron-ore within the Marampa Group


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RutileRutile


Sierra Leone has one of worlds largest natural rutile (TiO2) reserves

4 key deposit groups discovered in the Southern Province (1954)

Until 1995 Sierra Rutile Ltd (SRL) produced 25% of world supply

World class deposit: 154Mt at 1.5-2.0% rutile; very robust economics

MIL (Investments) SARL and US Titanium own 75% and 25% of SRL

Sierra Rutile mine being brought back into production


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DiamondsDiamonds


Quality and quantity of Sierra Leones diamonds is world renowned

20,000km2diamond fields in eastern Province; Kono, Kenema & Bo

970 carat Star of Sierra Leone is the 3rd largest diamond ever found

Koidu Holdings SA has resumed mining of Koidu Pipe 1

Peak national diamond output of 2 Mct/yr in 1960's

Export certification scheme in place under Kimberley process


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BauxiteBauxite


High-grade 55km wide metamorphic NNW belt (Moyamba to Kambia)

Product of weathering hypersthene feldspar-rich Kasila Group

Sieromco commenced mining in 1963 (1.5 Mt/yr), closure in 1995

Mokanji deposit; variable quality at 55% Al & 4% Si (blended)

Port Loko deposit 100 Mt reserves at 48% Al & 3% Si

Good infrastructure links via iron-ore railway and existing ports


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GoldGold


All the major greenstone belts proven to host gold

Major gold belts occur in Sula Mountains (Sonfon and Yirisen), Kangari Hills

(Baomahun), Nimini Hills, Loko Group & Gori Hills

Current operators include Mano River Resources Inc. (in Joint Venture with

Golden Star Resources Ltd), Harry Winston Inc. & Afcan Mining

Highly prospective and under explored gold province


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Platinum & ChromitePlatinum & Chromite


Alluvial platinum discovered in late 1920's on Freetown Peninsula

Platinum sourced from erosion of Freetown basic igneous complex

5,250oz Pt produced (1929-1949) by panning and sluicing of gravels

Hangha chromite (42% Cr2O3) mined intermittently by open pit


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PetroleumPetroleum


A frontier province for oil exploration, first bid round announced in 2002

5,700km seismic survey off southern coast processed

Seven blocks packaged for licensing

Four blocks awarded in 2003 to three companies

Reservoir quality sands & mature source rocks identified

Numerous and relatively widespread trap sites exist

New Petroleum Act promulgated in 2001


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Kimberley ProcessKimberley Process


Sierra Leone introduced the UN SC Resolution 1306 (2000)

Kimberley Process commenced in 2003 to provide wider coverage for the

certification scheme

Sierra Leone's diamond exports increasing to $76m in 2003 from US$1.5m in

1999 at the peak of instability


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Summary of Diamond ExportsSummary of Diamond Exports(2003)(2003)


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OperatorsOperators

Current Operators


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REBUILDING SIERRA LEONE - REBUILDING SIERRA RUTILE LIMITED

As Sierra Leone continues on the road to recovery, Sierra Rutile Limited will spendupwards 60 million USD in 2004 to fully refurbish its plants and begin shipment ofrutile. This demonstrates Rutiles belief, as the largest private sector investor, in thefuture of Sierra Leone.

SIERRA RUTILE LIMITEDWorking for a better Sierra Leone


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Sonfon

Pampana

Nimini

Kono

Mano River Resources Inc.Mano River Resources Inc.

Sierra LeoneSierra Leone

LiberiaLiberia

GuineaGuinea

Tel +44 (0) 1235 810 740Fax: +44 (0) 1235 810 733Email: [email protected]

AIM: MANA

TSX-V: MNO

www.manoriver.comwww.manoriver.com

Pole Position inPole Position in

Emerging West AfricanEmerging West African

Gold & DiamondGold & Diamond

ProvinceProvince


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Pursuing Diamond andPursuing Diamond and

Nickel OpportunitiesNickel Opportunities

Worldwide.Worldwide.

!!Sierra LeoneSierra Leone

!!MadagascarMadagascar

!!GreenlandGreenland

!!NamibiaNamibia

Symbol:Symbol: DFIDFI--TSXTSX


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Sierra Leone Diamond Company LimitedSierra Leone Diamond Company Limited(formerly Africa Diamond Holdings Limited)(formerly Africa Diamond Holdings Limited)

_Significant Gold andDiamond Land Position in

Sierra Leone

_High Resolution Airborne

Survey Being Flown Over AllProperties With 2 Aircraft

_Extensive Alluvial DiamondProgram Evaluation

Underway2ndFloor, 26 Siaka Stevens StreetFreetownTelephone: 232 22 226331Email: [email protected]

www.sierraleonediamond.com


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African Diamonds is a U.K. stock exchange listedcompany with operations in Sierra Leone, Guinea,

Botswana and Lesotho.

The company holds three concessions covering 405 sq kms in the Koiduregion

Trial mining on Pipe 3 adjacent to DiamondWorks in the Koidu area begins inMarch 2004

An extensive dyke swarm has been mapped in the Koidu region and will bebulk sampled in 2004

Detailed heavy mineral concentrate sampling is underway on the previously

unexplored licence to the South East of Koidu

www.afdiamonds.com


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HARRY WINSTON INC.

Is a fully integrated international diamond company, which specialise in the marketing of diamonds and diamond

jewellery throughout the world.

Associated with Sierra Leone since the 1950s.

Through its Sierra Leonean subsidiary Baomahun Gold Mines Inc. has two gold exploration licences at

Baomahun and Victoria in the Kangari Hills.

Historically 17 diamond drill intersections averaged a width of 55m @ 6.2 g/t gold. 12 intersections from 9 holes

in a later programme averaged 5.4 g/t over 16 metres gold

A geographically limited resource of 290,000 tons @ 5.2 gms/ton has been identified in one small part of the

prospect.

A programme has commenced to demonstrate a resource in the rest of the prospect with at least a one million

ounce deposit likely.

CONTACT : Dr. Leslie Wright / Richard R. Duncan

Telephone: 232 22 227467

Email: [email protected]


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Golden Prospect plc

Diversified natural resources investor

In Sierra Leone since 1995

Investing in both listed and unlisted opportunities

Listed on the London Stock Exchange AIM market since 1999 Strong shareholder base

Portfolio consists currently of strategic equity holdings in 16 investeecompanies based in Africa, Australia and North America

AIM: GOL www.goldenprospectplc.com


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Initiatives in past yearInitiatives in past year Government introduced a Core Mineral Policy (CMP) to:

- Review and amend Mining Laws, Regulations and Associated Laws to make them

as attractive as possible for investment

- Strengthen the Institutions that Administer, Regulate and Monitor the Mineral Sector

- Develop and Strengthen Human Resources in the Minerals Sector

- Attract Private Investment in the Minerals Sector

- Ensure that Sierra Leones Mineral Wealth Supports National Economic and Social

Development

- Improve the Regulation and Efficiency of Artisanal and Small-Scale Mines

New Corporate Tax reduced from 37% to 30% (regionally very competitive)

Summary


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Progress in past yearProgress in past year Signed a revised agreement with Sierra Rutile

Held 3 workshops (DfiD, World Bank & MMR) in association with donors to create a way forward for the attraction of private

sector investment

Koidu Holdings SA rehabilitated mine and commenced diamond production

Sierra Leone Diamond Company Ltd commenced airborne geophysical survey on north eastern part of the country Mano River Resources continued exploration in Kono, Yirisen and regional exploration for diamonds in south eastern

quarter of the country

Several companies/projects nearing pre-feasibility work for gold mines

Summary


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SummarySummary

Highly prospective and under explored

World class Sierra Rutile mining operations recommencing

Koidu diamondiferous kimberlite pipe mining underway Several key hard rock gold and diamond projects advancing rapidly

Working with international community to facilitate mining investment

Growing investor confidence with a resurgence in activity and interest

The emerging pride of west Africas mining sector

Summary

mining sector paper_sierra leone

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