Geology and Mineral Investment Opportunities in South Sudan
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Transcript of Geology and Mineral Investment Opportunities in South Sudan
REPUBLIC OF SOUTH SUDAN MINISTRY OF PETROLEUM AND MINING
RSS/JUBA
GEOLOGY AND MINERAL INVESTMENT OPPORTUNITIES
IN SOUTH SUDAN
DR. ANDU EZBON ADDE
MAY 2013
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.
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.
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.
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.
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.
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.
• 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.
• 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.
• 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.
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.
• 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
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.
• 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
• 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
• 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.
• 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.
• 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.
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.
• 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.
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.
• 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.
• 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.
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.
THANK YOU FOR YOUR ATTENTION