RGN | Tanga Resources

Page 1

WWW.RESOURCEGLOBALNETWORK.COM


MINING | Tanga Resources


Resource Global Network

TAN G A MELBANA ENERGY RE SO U RCES

Unlocking reserves in Cuba’s underexplored offshore oil basins On the road towards base and precious metals exploration in Namibia


MINING | Tanga Resources

In 2018, ASX-listed Tanga Resources decided to shift its focus from gold exploration in Tanzania to precious and base metals in a new African jurisdiction – Namibia. Tanga initially acquired the Joumbira Zinc Project and followed it up with the Hagenhof CopperCobalt Project in August 2018. Chief executive Matthew Bowles explains that part of the reason for the move into Namibia was in response to the recent changes to the Tanzanian mining code. “From our perspective, this had a fairly significant impact on investor sentiment into the country, and when you are a junior explorer it impacts you even more so,” he says. Most recently, Tanga has expanded its relationship with Namibia’s state-run Epangelo Mining, further cementing the company’s position in this attractive jurisdiction.

All of these attributes are factored into the

When searching for a new host country,

projects all within the highly prospective

Tanga saw in Namibia significant exploration

Damara Orogenic Belt – a highly mineralised

potential, an established mining industry

geological formation running through

with a long history of metal production,

Namibia.

excellent infrastructure in place and a

Fraser Institute’s Annual Survey of Mining Companies, which consistently ranks the Southwest African country highly in terms of being an attractive destination for mining and investment. For instance, in its latest report Fraser ranked Namibia as the fourth highest African jurisdiction for mining and investment and the 61st highest in the world – which is no mean feat for a sparsely populated country of 2.6 million. “For us, it was about moving to a stable jurisdiction, with significant geological upside, that was open for business from a mining and exploration point of view. A number of major mining companies are already operating in country, including B2Gold, Rio Tinto and Vedanta Zinc. “On top of that, there is excellent infrastructure in Namibia, which is probably some of the best in Africa, and that has really helped us to decide where we want to be.” Tanga has been in Namibia for almost 12 months and has spent much of this time on the ground reviewing several regions and

friendly attitude towards exploration and

Epangelo Mining JV

development.

The company began its ascent into Namibia by partnering with the government for the


Resource Global Network


MINING | Tanga Resources exploration and development of the Joumbira Tanga conducted a small diamond drill Project, via an earn-in agreement with

campaign in May last year which confirmed

Epangelo. The project offers potential for a

the existence of high grade zinc, lead and

large high grade zinc-lead-silver orebody over

silver mineralisation zones within a much

a vastly underexplored licence covering 210

larger lower grade mineralised zone.

km². Most notably, zinc mineralisation of up Tanga’s relationship with Epangelo has

to 15% was intersected, within a broader

further blossomed since the initial alliance

+40 metres zone of moderate grade in

was formed at Joumbira. In February

the final three holes of the campaign, and

2019, the company signed another earn-in

mineralisation remains open in all directions,

agreement with Epangelo to further increase

which provides significant resource potential.

its ground position in Namibia to over 1,700 km².

The Hagenhof Project Despite the initial exploration results of the

“Our strategy has always been to expand

Joumbira project, Tanga has since refocused

our presence and build a new footprint in

its near-term priorities on the Hagenhof

Namibia and our relationship with Epangelo

Copper Project after the outright acquisition

has supported us in doing this,” reveals

of 100% interest in the 197 km² licence in

Bowles.

August last year.

“We get on really well with the Epangelo

Once again, the company is utilising

team. They like that we are exploring

geological reports on the licence from the

in-country and we share with them our

1970s to guide its initial exploration targeting

technical ideas, and they will provide some of

at the project. Historical drilling undertaken

their input and thoughts on our exploration.

by Phelps Dodge in 1972 returned results of 18 metres @ 0.9% copper from 93 metres,

“It’s a very good relationship on both sides

including 12 metres @ 1.08% copper from 96

and we are looking forward to making a

metres, including 3 metres @ 2.37% copper

discovery in the future that will be of benefit

from 96 metres and 24 metres @ 0.88%

to all stakeholders.”

copper from 74 metres.

Returning to Joumbira, the project was first

This historical data has confirmed copper

drilled in the 1970s with some fairly advanced and cobalt mineralisation at Hagenhof, but and interesting results emerging from the

Bowles reveals that the area has never been

campaigns, according to Bowles. “We will

assayed for gold.

look to repeat some of those results as we advance the project.”


Resource Global Network

“It was about moving to a stable jurisdiction, with significant geological upside, that was open for business from a mining and exploration point of view.� Matthew Bowles, chief executive Tanga Resources


MINING | Tanga Resources


ResourceGlobal GlobalNetwork Network Resource “That is quite exciting for us and when we undertake the drilling at Hagenhof, we are going to be assaying for a multi-commodity analysis, so we hope there might be gold in the system as well.” Tanga will conduct a 1,200 metres RC drilling programme before the end of H1 2019, with the ultimate goal to confirm some of the historical results and test the potential scale at Hagenhof. “The main gossan at Hagenhof outcrops for over 400 metres and from the historical drilling we know the mineralisation plunges to the Southwest, so this drill programme is initially to confirm those historical results

Capital Drilling, a leading provider of exploration and production drilling services, are proud to partner with Tanga Resources to deliver their drilling projects in Tanzania.

www.capdrill.com

|

info@capdrill.com

and also to test the depth and plunge of that mineralisation,” says the chief executive.

“We are now looking to expand and build our team around him and have already got

Tanga recently announced the appointment

two other Namibian exploration geologists

of vastly experienced Namibian geologist

working with Wynand. It’s important for us to

Wynand Slabbert as the company’s

use the local resources.”

exploration and country manager, a move which Bowles thinks is critical for Tanga’s

The situation in Tanzania

ongoing growth strategy in Namibia.

The Tanga management team is also closely monitoring developments in the Tanzanian

“When you have overseas projects, you want

mining industry in relation to the Hanang

to build a team that is based in-country.

Gold Project – the company’s original

Wynand’s appointment is vital for Tanga, as

exploration project before it expanded into

we look to build our presence in Namibia

Namibia.

from a management position. Located in a highly prospective region of the “Wynand is an exceptional geologist with 10-

Archaean Greenstone Belt, Tanga owns 400

15 years of experience working as a senior

km² of prospecting licences for the project,

geologist for AngloGold Ashanti in Africa, at

which possesses over 50 km of potential

Navachab Gold Mine in Namibia and Siguiri

strike along a major mineralised corridor,

Gold Mine in Guinea.

with multiple high priority targets.


MINING | Tanga Resources

However, Tanzania’s mining sector has

and Tanga is adopting a ‘watch and wait’

fallen into a state of inertia over the last two

approach so that it can see with greater

years, after a material change to the Mining

clarity when deciding how to operate in the

Code, while a dispute continues between the

future.

government and Acacia Mining, in relation to the latter allegedly under-declaring export

“A lot of the circumstances arose because

revenues.

of the issues between the Tanzanian government and Acacia Mining. We are

Tanzania has since increased its royalties on

waiting to see how they are resolved before

mineral exports including gold and uranium,

we look to revisit and crank up exploration

and project participation interest, which

again in-country,” explains Bowles.

has served to negatively impact investor sentiment into the mining sector.

Building a footprint in Namibia

Nonetheless, resolution negotiations

Since pivoting away from Tanzania, Tanga has

between the government and Acacia’s parent

applied a strategic approach to building its

company Barrick Gold are progressing

presence in Namibia on the back of several


Resource Global Network

geological assessments and an evolving

Despite adopting a new multi-commodity

relationship with the state mining investment

focus through the Namibian projects,

company Epangelo.

Bowles is hopeful that the company can still demonstrate its trademark expertise in the

“Having Epangelo as a JV partner is a

field of gold exploration.

complementary move for us and a great endorsement of our company when you

“While we are primarily chasing copper at

consider that we already have two farm-in

Hagenhof, there are some gold signatures

agreements with them. I believe we have built there too. We’ve got some pretty exciting the foundations of a very strong precious and

copper targets at Hagenhof, but we are

base metals company in Namibia.”

certainly not overlooking the gold potential in the region as well,” concludes Bowles.

ASX:TRL

a j


Published by Anderson Murray Media Ltd

To tell the resource market your story, contact: editorial@resourceglobalnetwork.com

WWW.RESOURCEGLOBALNETWORK.COM


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.