Despite riches of gold, iron ore, chromite, zinc, aluminium, nickel, and many other minerals, mining in Sudan contributes just 4% to the country’s GDP, with the yellow metal being the main driver. Now the industry may be in for a further boost as Pan African Resources has secured five prospecting concessions in a +/- 1 100 km2 area in the north east of the country and shortly begins exploration.
A robust production portfolio with strong, sustainable assets has been a central strategic pillar that’s enabled Pan African Resources to cement itself as one of the lowest-cost gold producers in Africa.
Now the Group is assessing a number of exciting prospects in Sudan to add further production growth to its project pipeline on the back of promising rock samples yielding an average grade of 13.6 g/t obtained during site reconnaissance.
- 5 prospecting concessions
- 1 100 km in the Nakasib Suture Zone (NSZ)
- 70km2 northwest of Port Sudan
- US$7 million investment during the first 3 years
- Awarded by Sudan’s Ministry of Minerals for 3 years, renewable for a further 2 years.
Five prospecting concessions have been secured in Block 12, a +/- 1 100 km2 area in the Nakasib Suture Zone (NSZ), about 70 km northwest of Port Sudan, a regional trading and shipping hub. Block 12 is located on the same suture zone as the Hassai Gold Mine, the largest gold mine in Sudan with historic production of some 100 000 oz. per year.
Exploration commences in the second quarter of 2022, when results for the initial identified targets will be verified.
Geology & Formation
The Nakasib Suture Zone is located within the Arabian-Nubian Shield (AND), an exposure of crystalline rocks that formed during the Pan-African orogeny between 500 million and 900 million years ago. It consists of a number of terrains that are separated by sutures represented by wide shear zones. Here, gold mineralisation can be found as both alluvial and orogenic gold.
A Pan African Footprint
PAR’s operational expansion in Sudan also represents another significant milestone as it marks the growth of the Group’s footprint into Africa. While we also continue to expand our South African assets, such as the recent acquisitions of Mintails and Blyvoor, strategic innovation and growth – in technologies, skills and geographies – will guarantee the Group’s excellence and shareholder value is sustained in the future.
Detailed due diligence analysis, site reconnaissance and detailed desktop studies by Pan African’s technical team suggest the Block 12 concession areas could be an excellent strategic investment by the Group.
Our management team has been visiting Sudan for the last two years to identify prospective gold mining sites. We believe that the Block 12 concessions are highly prospective, and we look forward to reporting exploration results from these properties.
Cobus Loots, Chief Executive Office, Pan African Resources
Ten initial target areas have been identified for further exploration, based on the size, extent of artisanal workings, presence of alluvial workings and associated tailings, prospectivity and upside potential.
Innovative governance and strategic planning have developed with sustainable mineral reserves ensured and deliver excellent value for shareholders.
More about mining in Sudan
While the majority of the country’s mineral reserves remain underdeveloped, mining in Sudan contributes about 90 tonnes of gold to the global market per annum, making it the 10th largest gold producer in the world. Most of this is mined in the Hassai Gold Mine, where iron ore and base metals are also mined.
Apart from the Arabian-Nubian Shield, gold can also be found in the North Kurdufan and Blue Nile regions, and along the Nile River. Other mineral reserves include chromite, gypsum, phosphates, zinc, lead, nickel, aluminium and cobalt.