Morocco-based Managem Group has entered into a second cooperation partnership with China-based Wanbao Mining Group for the development of a large-scale gold mining project in Sudan.
Under the terms of the partnership, Managem will retain 65% ownership (excluding any interest attributable to the government of Sudan) in the exploitation and exploration licence – Block 15 – and the associated Gabgaba gold mine (pictured) and expansion project, as well as exploration licences, being Blocks 9 and 24, with Wanbao Mining owning the remaining 35%. In addition, Managem will own a 35% stake in the exploration licenses Blocks 64 a-b-c and 66 a-b-c currently owned by Wanbao Mining.
Through this partnership, Managem and Wanbao Mining will be aiming to:
Expand the existing Gabgaba operation
The Gabgaba (Block 15) expansion project assumes an increase in annual gold production from around 60,000 oz/y to 200,000 oz/y with an estimated capital expenditure of some $250 million. Both partners intend to deliver a definitive feasibility study in order to expand the Gabgaba gold mine within three years. Managem will remain the operator of Gabgaba mine and project. As part of its commitments under the terms of the partnership, Wanbao Mining is to provide the requisite assistance in securing up to 70% of the project funding, Managem says.
Develop new projects within the existing exploration licences
The goal of the partnership is to capitalise on the vast untapped exploration potential embedded within the existing licences and develop another gold mining operation within three years with projects ultimately owned on joint, 50/50 basis, Managem says. Wanbao Mining has agreed to fund up to $30 million of exploration and evaluation expenditures, and to conduct the exploration work as the operator with co-management of Managem on the licences subject to the partnership.
Cooperate and grow the presence in Sudan
Managem says it has a long-standing track record of successful operatorship and presence in Sudan and the newly established partnership with an experienced and committed partner, such as Wanbao Mining, provides an even stronger base for future growth in gold production within and beyond the existing licences of both partners in the country with unparalleled untouched potential.
Imad Toumi, Chairman and CEO of Managem, 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 200,000 oz/y in the medium term, in addition to strengthen our exploration efforts for a new mining project in the other blocks.
“I am convinced that this new strategic cooperation, based on trust and mutual respect, will have positive impact on both our companies and will lead to a multi-million-ounce gold mining operation in Sudan.”