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Geology and Mineral Investment Opportunities in South Sudan


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Geology and Mineral Investment Opportunities in South Sudan

Hosted by Dr Andu Ezbon Adde, Under Secretary Mining,
South Sudan
Mining On Top: Africa - London Summit
25-26 Jun 2013 | London

Published in: Technology, Business

Geology and Mineral Investment Opportunities in South Sudan

  2. 2. PRESENTATION OUTLINES 1. Introduction. 2. Geology. 3. Minerals: occurrences & work done. 4. Investment opportunities in minerals and geological materials. 5. Positive investment factors in minerals. 6. Challenges of investments in minerals. 7. Conclusions.
  3. 3. 1. INTRODUCTION • Rock types and structures optimum for metallic mineralization • Precious and base metals occur in several places • Industrial minerals/building materials are widespread. • Insignificant exploration work done; no existing mine. • Many investment opportunities in mineral sector. • Government tailors mining laws to attract investors.
  4. 4. 2. GEOLOGY • Precambrian gneisses, meta-sediments, basic volcanics and recent sediments at the lowlands. • Crystalline rocks cover about 40 % of the surface area. • Granitic intrusions of various ages. • Metamorphism: high, medium and insignificant low. • Multi-phase deformation: folding and faulting. • Metallic mineralization in Precambrian and Tertiary orogenies.
  5. 5. 3. MINERAL OCCURRENCES AND EXPLORATION WORK DONE IN SOUTH SUDAN. • There are a vast number of metallic minerals spread all over the South Sudan: gold, copper, zinc, lead, manganese, iron, silver, tin, etc. • Also industrial minerals exist: marble, limestone, dolomite, kaolin, clay, asbestos, etc. • Apart from gold at Kapoeta and Luri; copper at Hofrat Ennahas, bauxite/iron ore at Wau area and marble at Kapoeta no other mineral has been prospected to an appreciable level. • A lot of work needs to be done on the minerals to develop them exploitation subsequently development stage.
  6. 6. INVESTMENT OPPORTUNITIES IN MINERALS AND GEOLOGICAL MATERIALS. 4.1. Investment opportunities in gold. • Areas of gold occurrences in S.Sudan • Eastern Equatoria State: All Kapoeta Counties + Nimule. • Central Equatoria State: Luri, Lobonok, Yei. • Western Equatoria State: Mundri-Amadi. • Western Bahr El Ghazal State: Khor Ghana, Wau County. • Upper Nile State: Sobat County. • Some prospecting/exploration work was done on gold in the Kapoeta Counties and Luri in Juba County; other areas are still untouched.
  7. 7. Fineness of South Sudan gold Neutron activation analytical results Variable Composite gold Samples Av C1 C2 C3 C4 Au % 89.1 84.4 90.5 76.0 85.0 Ag % 6.3 10.9 3.9 4.4 6.4 Fe, % 4.2 4.1 5.3 5.9 4.9 T ppm 3395 5840 3470 -- 3179 Sb ppm 180 294 153 -- 156 Hg, ppm 77 75 39 114 76 Au Fineness [a] 891 844 904 881 880 Au Fineness[b] 934 886 959 945 930 Au/Ag ratio 14.1 7.7 23.2 17.3 13.3 [a] = 1000 Au [Au+Ag+Fe+Te+Sb+Hg]-1 [b] = 1000 Au[Au+Ag]-1 [Source; Adde, 1990] Pure gold is 24 carat or 1000 Fine; so South Sudan gold is of a very high purity it is worth investing in.
  8. 8. • The main copper-gold ore occurrence is at Hofrat Ennahas, Western Bahr El Ghazal State. • Prospected and explored by several companies, including Billington of South Africa. • Ore is strata bound with minor later basic intrusions. • Associated with radioactive minerals. • Assays commonly 1 – 5 % Cu and up to 3 g Au/t. • Ore resources 40 – 60 m tons. • Mineralisation open at depth and laterally to CAR boarder. 4.2. Investment opportunities in copper and gold.
  9. 9. • Three main areas of bauxite prospects: West of Wau City, North and east of Juba City and West of Yambio town. • Wau bauxite area 30 km by 30 km prospected by grid drilling. • Bauxite layer 4 – 20 m thick, usually underlies laterite. • Samples assay 20 - 30 % Al203, occasionally > 40 % Al203 • Bauxite ore resources estimated at about 3 b tons. • Occurrence open to the west and north. 4.3. Investment opportunities in bauxite.
  10. 10. • Extensive iron ore occurrence north and west of Wau City to borders with Sudan and CAR respectively. • Represented by iron caps as discontinuous bodies. • Generally overlies bauxitic layer. • Chip and percussion samples assay 30 – 70 % Fe203, occasionally > 80 % Fe203. • Variable ore zone thickness: 10 – 30 m. • Possible tonnage in 900 km2 drilled area about 10 b. • Ore occurrence thickens to the north. • Unlimited investment opportunity. 4.4. Investment opportunities in iron ore.
  11. 11. Other minerals of widespread occurrences in South Sudan include: • Zinc; around Torit, right to border with Uganda and south of Juba to Kajokeji. • Manganese; south and west of Juba to Yei and to the borders with Uganda and Zaire. • Lead; mostly east and north of Yei, also towards Juba and Torit. • Nickel and cobalt occur in patches in soil samples. 4.5. Investment opportunities in other metallic minerals.
  12. 12. • Areas of carbonate occurrences in South Sudan Despite presence of marble, there is no cement plant in South Sudan. 4.6. Investment opportunities in cement manufacture. No Area, State Carbonate Status 1 Kapoeta, Eastern Equatoria State Marble Explored 2 Kajokeji, Central Equatoria State Marble/limestone Unknown 3 Kineti, Torit County; Eastern Equatoria State Dolomite Prospected 4 Mangayat, Raja County; Western Bahr El Ghazal State Ferroan dolomite Prospected
  13. 13. Kapoeta marble for cement: • A lot of construction needing cement in South Sudan. • All cement in South Sudan imported and sold at 640 US $ a ton: too expensive for most people and still getting more expensive. • Kapoeta marble explored for a cement solution. ‾ Mapping. ‾ Chip sampling plus trenching. ‾ Drilling and logging. ‾ Sample assays and data interpretation. ‾ Marble reserves calculation.
  14. 14. • AVERAGE ASSAYS OF KAPOETA MARBLE, CLAY AND KLINKER SAMPLES • High CaO and low MgO contents will produce a high quality cement. (Sources, Klockner, 1978). Constituents (%) Kapoeta samples Marble Clay Klinker CaO 52.67 1.80 41.89 MgO 0.81 1.53 0.97 Al2O3 0.47 17.03 3.98 Fe2O3 0.30 8.31 2.00 SiO2 1.93 57.29 13.67 LOI*/others 43.82* 14.04 37.49
  15. 15. • Kapoeta Cement Moduli – cement quality. (Sources, Klockner, 1978) • The Kapoeta raw materials for cement production will produce a high grade cement that is in a high demand; therefore it is worth investing in cement in the South Sudan. Modul Value Optimum reference Lime standard 95 90-94, ordinary grade cement. 95-98, high grade cement. Silica modulus 2.47 2.4 – 2.7 Iron modulus 1.81 1.5 – 2.5 Harmonic modulus 2.12 1.7 – 2.2
  16. 16. • Aggregates; for buildings, roads, bridges, airports etc. Many fresh rocks to crush and sell to markets nearby. • Clays for brick making. At each depression thick clay layers exist. • Sands. Thick deposits of sands along river courses for civil engineering. • River gravels; along major winding streams. Sieved to desired sizes; preferred by heavy duty civil engineers. 4.7. Investment in building/construction materials.
  17. 17. • A huge amount of white sand deposit at current river beds. • Khor Romula sand, south of Juba studied for exploitation. • Sample assays reveal > 95 % Si02 and insignificant Fe2O3 • Unlimited tonnage and replenished yearly by erosion and deposition. • Huge and increasing demand for glass and bottles. 4.8. Investment in glass and bottles industry.
  18. 18. • There is no geological or geophysical lab in South Sudan. • A lab is vital for preparing and analysing samples. • Lab data set the way forward and check quality of materials for controls of operations. • A reliable and fast lab is a money maker. 4.9. Investment opportunities in laboratories.
  19. 19. Types of Labs to invest in. • A preparatory lab – for bringing samples to analysis stage: crushing, grinding, pelletization, thin sectioning, separation, dissolution, standardisation. • Chemistry Lab – for analysis of samples: soil, rock, ore, water etc for desired elements. • Physical Lab – XRD, hardness strength, conductivity, resistivity, radioactivity, etc tests. • Heavy mineral Lab – Separation, identification, etc. • Petrographic Lab – Thin sectioning, mineralogy, alterations, etc.
  20. 20. • Efficiency in work reflects the measure taken in training/teaching the employee to do the work. • Nations, families, groups are prepared to pay highly for a high quality training. • Apart from general and university education South Sudan lacks professional training institutes in the mineral and related sector. • South Sudanese are sent abroad for short trainings; it is found insufficient and unreliable. • Home based training will cost less but train more people. 4.10. Investment opportunities in study/training institutions.
  21. 21. Where to invest in Training. • Investment in practical geology, geochemistry and geophysical training on home soil and materials. • Investment in Lab technology to cater for exploration and hospitals. • Investment in metallurgy for extraction of metals from home ores. • Investment in drilling industry for supplying the many oil and water drilling companies with competent South Sudanese drillers. • Investment in hydrogeology and hydrochemistry for monitoring water availability and suitability for consumption.
  22. 22. • Geological factors convenient for vast mineralizations • Vast minerals to choose from. • Some background information available for a smooth start. • Mining Laws designed to encourage investors. • High demand for building materials in local market • Local personnel eager for work in the mineral sector. 5. Positive factors for investment in minerals and related things in S. Sudan.
  23. 23. • Land-locked Country – transport of heavy equipment a problem. • Poor road infrastructure – access to sites rather hard. • Most minerals occur in remote areas – haul and accommodate manpower at work place at a cost. • Training of local staff – to level of proficiency at a cost. • After-shocks of a long war ebbing slowly – long time to adjust to civil life. 6. Challenging investment factors in minerals.
  24. 24. CONCLUSIONS • About 40 % of the South Sudan area is covered by crystalline rocks. • These rocks are folded and fractured to provide dilation zones. • Several minerals are found in the South Sudan at commercial potentials. • The Government is all out to lure investors. • Many investment opportunities exist in the mineral sector.