OUR PROJECTS
AUO has invested in 17 assets across a range of mineral resources and geographies.
Baobab Steel & Vanadium is an advanced Vanadium TitanoMagnetite project in the Tete region of Mozambique boasting a global resource of 759 million tons across a 2.4 square kilometre concession.
With over $ 70 million spent on exploration and studies to date, the project is at a DFS phase with 74 million tons proven to a JORC measured status and additional resources at indicated and inferred levels creating opportunities for a long-term project critical to global demand and strategic to local economic development.
The current DFS focuses on rebar and vanadium slag production flow, however our vision for the project, with newer technologies and infrastructure potential, is to maximize the value through a more advanced product mix including Vanadium Pentoxide, Titanium and Titanium Aluminide products and ultimately a Green Steel product once the Mphanda Nkuwa 1.5GW hydro project, situated 40km away, is commissioned in 2035.
Limestone on the property provides access to flux needed for midstream processing as well as the potential to unlock value from tailings as a “Blue” Philadelphian Cement.
Synergies with Tata and the neighbouring MidWest project further improve potential and economics for the project.
Statistics
| Project | |
| Country | Mozambique |
| JV Company | Baobab Steel |
| Life of Mine | 45-90 years |
| Resources | |
| Measured | 74.3 Mt |
| Indicated | – |
| Inferred | 688.7Mt |
| Mineralisation | |
| Fe | 33.81% |
| Vanadium | 0.39% |
| Titanium | 13.27% |
BUFFELSKLOOF | VANADIUM
Synopsis
Buffelskloof project based in South Africa boasts extremely high-grade V-Fe content ideal for easy extraction, open-cast mining at a 5:1 strip ratio.
Recent studies (2021) conducted by Tecoma Strategies, led by Matthew Mullins in 2021, specifically around pit optimization improved the mineralization from 54% Fe to 76% Fe making this an extremely cost-effective project when looking at a concentrate basis. With a small resource base of 5Mt our strategy is focussed on a concentrate product, rather than looking to capitalize major infrastructure for further processing. Modeling highlights selling into the domestic market to the like of Samancor and Bushveld Minerals for mid-stream processing yields the best returns.
The project is ready to start almost immediately, and while exploration budget has been allocated for studies required around mining schedules and technical studies – however these should not in any way detract from establishing on site as soon as funds are available to disburse.
Statistics
| Project | |
| Country | South Africa |
| JV Company | Mbuyelo |
| Life of Mine | < 10 years |
| Resources | |
| Measured | 5,01 Mt |
| Indicated | 130 Kt |
| Inferred | – |
| Mineralisation | |
| Fe | 76,68% |
| Vanadium | 1,69% |
| Titanium | 12,69% |
CHIFUNDE | GOLD
Synopsis
The Chifunde Gold project presented a few key criteria that supported investment. Mined 42koz of gold (valued at $84m with $2000/oz spot price) in the last 5yrs.
ALG managed to secure a full mining concession over the total 17,000 Ha exploration license.
A 20 ton/hr pilot plant is planned to be operational in Q2-24, producing gold from artisanal tailings and surface stockpiles (producing 277 Oz/month at 2g/t). Our Phase 1 modelling includes an additional 50 ton/hr expansion to cater for new ROM extraction when mining activities start.
The Chatsunda exploration target has been calculated to produce between 220koz and 1,3 Moz of gold by VBKOM consultants.
High-grade channel samples of up to 124 g/t (over 0.7m) gold from mining faces.
17 additional targets with similar geophysical, structural, and lithological interplays have been identified on the Chifunde property. Some of these areas have shown results for Copper-Cobalt bearing ore which has the potential to increase overall value of the project once studies have been completed.
Resource definition drilling is planned to commence in Q1-24, with JORC resource declaration, pit design and mine schedule finalized by 1 September 2024.
Statistics
| Project | |
| Country | Mozambique |
| JV Company | African Lion Gold |
| Life of Mine | + 10 Years |
| Resources | |
| Measured | 2,00 Mt |
| Indicated | – |
| Inferred | 16,5 Mt |
| Mineralisation | TBC |
| Gold | 2,6 g/t |
| Copper | – |
| Cobalt | – |
BLESBERG | LITHIUM
Synopsis
Blesberg is an old Tantalum mine, in which spodumene (lithium mineral) was discarded and placed on the dump.
This equates to immediate spodumene accessibility through a sorting process of the old dump which comprises of 0.35MT of spodumene at 5.6 – 6.1% Li
The immediate value lies in the initial stockpile reclamation with major upside in an already- opened in situ resource of approximately 0.78MT at around 6.0% Li
Since exploration started, Phase 1 (exposed pegmatite) and Phase 2 (pegmatite strike extension) have been completed, comprising of angled 40 diamond NQ drillholes at a total of 2,330m.
Statistics
| Project | |
| Country | South Africa |
| JV Company | Marula Mining |
| Life of Mine | – 10 years |
| Resources | |
| Measured | 1,1 Mt |
| Indicated | – |
| Inferred | ~ 4 Mt |
| Mineralisation | |
| Spodumene | 6%-12% |
| Li02 | 6% |
| Feldspar | 8% |
| Mica | * |
| Niobium | * |
| Tantalite | 0,04% |
NYORI NYORI | GRAPHITE
Sypnosis
Nyori Nyori presents an easily accessible large-flake graphite ore, which remains a key component in the battery market.
Preliminary assessments have identified an ore strike extending at least 2.6km in an east-west direction and the project can be moved quickly into development as the ore body is shallow in nature and easily mineable.
It is expected to bring a high amount of quality ore which is greater than 2.0MT at an anticipated grade of around 6.0% Gr with Travorite semi-precious gems as a by-product (previously mined through artisanal methods).
Nyori Nyori is one of 2 Graphite projects in the portfolio, and we have earmarked it for exploration during the Phase 1 capital raise to ensure it’s ready to move into production as we progress to Phase 2.
In addition to the 2.6km strike for which we currently have permitting in place, an additional 50 permits have been applied for to extend the total prospecting area.
With many smaller artisanal mines operating in the area, and studies being performed by local experts Geofields, we are confident that the project will yield good results.
Statistics
| Projects | |
| Country | Tanzania |
| JV Company | Marula Mining |
| Life Of Mine | 2-5 years |
| Resources | 51% |
| Measured | – |
| Indicated | – |
| Inferred | 2 Mt |
| Mineralisation | $ 134 400 000 |
| Graphite | 6,00% |
| Tsavorite | * |
| P1 Marketing EBIT | N/A |
KINUSI | COPPER
Synopsis
Kinusi includes a series of 10 licenses in a known copper hosting area, which has been exposed over the years to become a highly sought-after prospecting target.
High grades of 7.0% Cu have been sampled with some reaching 31% Cu in value. Regardless of these results, we have modelled based on a discounted 3% Copper content in the ore based on large-scale mining.
The ore is hosted within the pegmatite dykes showing consistency in strike and dip, with all artisanal operations mining at shallow depths of 4m below surface.
The current exploration programme has resulted in a resource increase from 5MT to 15MT and is anticipated to increase to 50MT as prospecting continues.
The next phase of exploration is being finalized and will include diamond drilling, geophysical surveys and a variety of primary and secondary interpretation methods.
In the interim, access to current feedstock from previous mining at Kinusi as well as smaller surrounding mines proves profitable for short-term returns until exploration and establishment activities conclude.
Statistics
| Project | |
| Country | Tanzania |
| JV Company | Marula Mining |
| Life of Mine | + 10 years |
| Resources | |
| Measured | – |
| Indicated | – |
| Inferred | 10 Mt |
| Mineralisation | |
| Copper | 3,00% |
| Gold | * |
LARISORO | MANGANESE
Synopsis
The Larisoro Manganese Mine is a conventional and shallow open pit mine which commenced operation in 2012 and has operated intermittently over the past 12 years on two granted and adjoining mining permits. Mined manganese ore has ranged from 18.82% manganese (“Mn”) to up to 55.01% Mn and has averaged 33.41% Mn over the past 6 years and which is crushed and screened to produce a +37.00% Mn saleable product that has historically been sold into the Asian markets.
The current operation consists of 3 shallow open pits that extend over a cumulative length of approximately 600m and which have mined the highly visible and outcropping surface manganese mineralization by conventional drill and blast and load and haul open pit mining operations down to very shallow depths of between 1.5m and 12m.
The operation currently has mining and processing equipment, which we intend on upgrading to allow for scaling up the operation to 20 000t ROM per month.
Coltan was also discovered during the due-diligence process and is not yet included in modelling but has the potential to substantially improve value as we progress to P2.
The current licensing extends over a 5km strike, and applications for prospecting the immediate surroundings are already in process.
Statistics
| Projects | |
| Country | Kenya |
| JV Company | Marula Mining |
| Life of Mine | + 5 years |
| Resources | |
| Measured | – |
| Indicated | – |
| Inferred | – |
| Mineralisation | |
| Mn | 33,41% |
| Coltan | * |
| – Nb2o5 | 43,7% |
| – Tazo5 | 35,9% |
HENKRIES | URANIUM
Synopsis
Henkries is a surface (<15 m), easily mineable JORC compliant resource equating to 5.35Mt U3O8 at 399 ppm. A positive feasibility study was completed in 1979 by Anglo American using >9,000m of drilling and 211 test pits, including bulk metallurgical sampling.
Only 10% of the mineral right has been explored to date and desktop studies indicate potential to increase the resource by an additional 15 – 20Mt.
Currently, work is underway with Erudite and Proctara to bring in updated technology to separate the U3O8 through a leaching process.
Once these studies are completed in the next 4 months, we plan to initial construction phases to start mining within 18month to capitalize on a bullish Uranium market.
Focus of the exploration programme is to generate an update on the FS with the newly added data, and to start the exploration process of the additional rights within the channel and extending the resources to increase overall valuation.
Mining will be basic open-pit, non-blasting operation at low strip-ratio which improve margins due to low-cost feedstock at these concentrations. This also means it will be easy to start up mining once beneficiation construction has been completed
Statistics
| Project | |
| Country | South Africa |
| JV Company | Neo Energy |
| Life of Mine | + 10 years |
| Resources | |
| Measured | 5,35 Mt |
| Indicated | – |
| Inferred | 20 Mt |
| Mineralisation | |
| U2O8 Filter Cake | 399ppm |
| REE | * |