Mining firm Managem Group has joined forces with Wanbao Mining Group to jointly develop gold mining projects in Sudan.
Under the arrangement, Managem will have 65% stake in the exploitation and exploration license Block 15 and the associated Gabgaba gold mine and expansion project.
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It will also own majority stakes in exploration licenses, Blocks 9 and 24.
Wanbao Mining will own the remaining 35% interest in these blocks.
Additionally, Managem will hold 35% interest in the exploration licenses Blocks 64 a-b-c and 66 a-b-c. These exploration blocks are currently owned by Wanbao Mining.
Through the partnership, the two firms plan to undertake the Gabgaba (Block 15) expansion project with an estimated investment of $250m.
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By GlobalDataThe project involves increasing the mine’s annual gold production to 200,000oz from approximately 60,000.
Within three years, the partners plan to complete definitive feasibility study for the Gabgaba gold mine expansion project.
Managem chairman and CEO Imad TOUMI said: “Today, we give new impetus to our growth strategy in Sudan by bringing forward the development of a large-scale gold project in Block 15, with target production of 200,000oz per year in the medium-term, in addition to strengthen our exploration efforts for a new mining project in the other Blocs.”
In addition to exploiting the untapped exploration potential within the existing licenses, the partnership will develop another gold mining operation within three years.
Additionally, Wanbao Mining will fund up to $30m for exploration and evaluation programmes as well as undertake exploration work as the operator on the licenses with co-management of Managem.
Managem expects the partnership to provide stronger base for future growth in gold production within and beyond the existing licenses in the country.
