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