Sudan is the second largest producer of gold in Africa and the ninth in the world. All of it comes from artisanal and small scale mining.
With sanctions lifted, 128 gold mining companies are already involved in the gold sector.
Orca Gold is the only listed company in the with a significant project.
Catalysts such as an update mineral resource and a feasibility study before the end of 2018.
Construction to start before the end of 2018.
There is a gold rush in Sudan, a country that is currently the second largest producer of gold in Africa and the ninth in the world with around 105 tons in 2017 despite all production coming from artisanal and small scale mining. There are currently around 1.5 million Sudanese involved in artisanal gold mining and gold production is Sudan’s main source of hard currency with over 35% of exports.
Since the USA lifted long-standing sanctions on Sudan in October 2017, interest from gold miners has skyrocketed and Sudan’s Minister for Minerals Hashim Ali Salim said that 13 agreements on gold and other minerals have been signed in the first quarter of 2018 alone. He added that a total of 128 gold mining companies are currently involved in the country’s gold sector.
However, there is only one project in the country that is large enough and owned by a public company and that’s Orca Gold’s (OTCPK:CANWF) Block 14. The company is definitely getting attention, and on May 28, Australian gold miner Resolute Mining (OTCPK:RMGGF) announced that it has agreed to acquire a 15% stake in it for CAD 21.8mn (USD 16.4mn). The fresh funds will allow Orca to fund its feasibility study.
Orca Gold is managed by the same team behind West Africa-focused gold major Red Back Mining which was acquired in 2010 at a valuation of more than USD 7bn.
After Red Back, the team decided it wanted to do something else on the continent but couldn’t find anything that met their criteria so they decided to start from scratch. They were looking for a large gold project that could produce a large quantity. The team wasn’t worried very much about the political climate but paid close attention to the security climate which led them to the Arabian-Nubian Shield and Sudan.