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The first half of 2022 reflects a loss of £237,000 from administrative costs, this corresponds to the company’s expenditure on overheads, operational and exploration costs, and legal and professional expenses primarily related to the proposed transaction to acquire a series of exploration assets in Morocco and a proposed move to the Standard List of the London Stock Exchange,” explains Charles Bray, executive chairman.

“Additional expenditure was incurred on the Musasa JV and HCK JV operations in Rwanda. Over the period, management maintained its protocols for cash management and refrained from receiving salaries.”

During the reporting period, management continued working towards the completion of the transaction announced on the 22 November 2021. The company signed a sale and purchase agreement to acquire 100% of the share capital of Aterian Resources, a 100% owned indirect subsidiary of Altus Strategies, through the issuance of new ordinary shares of £0.01 par value in the company, the grant of warrants to purchase new shares and the grant of certain mining royalties. 

Subsequently Altus has merged with Elemental Royalties Corp. and the combined entity, Elemental Altus Royalties Corp, is listed on TSX-V in Canada and OTCQX in the US. 

Aterian is advancing a portfolio of 15 copper and silver prospective exploration projects in the Kingdom of Morocco. Concurrent with the acquisition, the company will apply for admission to the Official List and to trading on the London Stock Exchange’s Main Market for listed securities and change its name to Aterian Plc.

“Upon the successful completion of the acquisition, which is conditional upon the company listing on the LSE, we will welcome EARC as a significant beneficial shareholder. This proposed transaction transforms the Company into a multi-jurisdiction, multi-commodity, critical and strategic metals exploration and development company and we are excited that EARC will become a key shareholder,” states Bray.

HCK JV – southern Rwanda

Reconnaissance prospecting and geochemical soil sampling have resulted in the discovery of multiple new pegmatite zones. Prior to commencing fieldwork, two occurrences or zones, referred to as HCK-1 and HCK-2, were known. We have now identified a further 16 zones of pegmatite, bringing the total to 18 locations on the project that will require further assessment and evaluation. The significance of these discoveries is that pegmatite dykes in Rwanda are the primary host rock for Tantalum-Niobium mineralisation.

HCK-1 exploration

The company is conducting a shallow exploration pitting programme along the strike of the HCK-1 pegmatite zone to determine the overall geometry of this occurrence. The pits are excavated along sections, spaced approximately 100 m apart, orientated perpendicular to the general strike trend of HCK-1, and separated roughly 50 m along the section lines.

Initial reconnaissance of HCK-1 had estimated the strike length to be c. 650 m. The current work indicates that the pegmatite zone continues for at least 1,500 m, with additional pitting expected to extend this further. Although additional infill work is required, the width of the zone in places is more than 100 m.

Environmental management plan

The company commissioned a local, Rwandan government registered, environmental consultancy to undertake an Environmental Management Plan (EMP) over the licence area. Although not a government requirement for an exploration project, the Company undertook the survey to outline the baseline conditions over the area, including the outcomes resulting from previous artisanal operations.

Musasa JV

Musasa operations

Based on the recommendation of our on-site processing consultants, Quiver Limited, several significant changes have been made to the plant. Material coarser than 1mm is now fed into the cone crusher on a continuous feed circuit to reduce the material to sub 1mm. The material flow circuit around the 16 shaking tables has been re-routed ensuring the product is recycled to maximise recovery.

Six additional slurry pumps were installed to ensure better material flow and, more importantly, the recycling of washed material to allow for multiple passes through the separation process and better overall recoveries.

Quiver is providing a plant manager, based on site to control and manage the daily operations and a metallurgical consultant to develop short and long-term process improvements and associated plant upgrade strategies to increase and optimise plant production, with additional material testing and analysis at approved laboratories.

“As of the end of the reporting period, the plant operation has been temporarily halted to allow for additional off-site metallurgical testing and the on-site evaluation of a new set of separation spirals recently imported from South Africa.  We will continue to evaluate how to best implement changes proposed by our processing consultants to optimise the plant’s productive capability.”

Kassava exploration

“In March, we commenced surface exploration over the Kassava Prospect, one of the five currently identified areas of mineralisation known on the project. The Kassava Prospect is located only 300 m south of the wash plant and follows a southeast trending ridge. Shallow vertical pits are being manually excavated to define the margins of the pegmatite, with data indicating the Kassava pegmatite to be lens-shaped with a maximum horizontal width of 80 m, with pits covering a strike length of 250 m.”

The geological team has identified several positive geological indicators, such as very coarse-grained muscovite, in addition to sub-cropping pegmatite, over a lateral distance of c. 500 m to the east of Kassava, suggesting the zone may be quite extensive.

“The licence application to extend the area of interest at Musasa up to 400 hectares remains pending with the Government of Rwanda.  We will be working closely with the Rwanda Mines and Petroleum Board to accelerate the grant of the licence. This application may entail a change in the working relationship with our partner, Kuaka Cooperative, to allow for faster review and possible amendment of the application.”

Metal trading

The company has been granted a licence to trade both locally and internationally in metals mined from the region. To fully activate this potentially valuable revenue stream opportunity, the company has initiated the application process to seek membership of the ITRI Tin Supply Chain Initiative (“ITSCI”).

ITSCI (the) is part of a traceability and due diligence program designed to address concerns over ‘conflict minerals’ such as tin, tantalum, and tungsten from the Democratic Republic of Congo and adjoining countries. Membership is a prerequisite for trading in Rwanda.

Gold Lion Resources has signed a mineral option agreement dated effective September 19, 2022, with Ermazon SARL, a wholly owned subsidiary of Elcora Advanced Materials (Elcora), pursuant to which Gold Lion has the option to acquire up to a 50% interest in a mining license in Morocco.

Ermazon has applied for the exploitation license of the manganese concession which will fortify ongoing strategies to supply battery and electric vehicle end-users.

The manganese site was a former French mine that was in operation for decades that Ermazon and Elcora intend to leverage on-site infrastructure and facilities. Up to 600 tonnes of raw ore from the mine is ready for processing; this development and exploration project will determine whether an open pit or underground mining operation is launched.

On execution of the option agreement, Gold Lion has acquired a 25% interest in the License by making a cash payment of $75,000 and by issuing an aggregate of 5,000,000 common shares of Gold Lion, at a deemed price of $0.05 per Share, representing an aggregate value of $250,000 for the Shares.

The shares were issued pursuant to available prospectus exemptions and will be subject to a hold period of four month and one day from the date of issuance pursuant to applicable securities laws.

Gold Lion has the option to: (1) acquire a further 15% interest in the License by making a cash of payment of $125,000 within five business days of receiving notice that Ermazon has secured the exploitation license of the manganese concession; and (2) acquire a further 10% interest in the license by making an additional cash payment of $50,000 within 15 business days of receiving notice of anticipated commencement of commercial production on the license.

Manganese represents a critical link in the lithium-ion battery supply chain. Electrolytic manganese dioxide (EMD) is an upgraded form of manganese that serves as a key ingredient of lithium-ion, alkaline and zinc-manganese batteries.

Europe’s energy crisis will propel the demand for (EV) electric vehicles that can serve as a back-up battery or utility storage bank. Batteries are necessary to fast forward electromobility, they store green energy, and can ensure that critical European infrastructure runs smoothly.

Morocco’s proximity to Europe is a significant benefit that will support the European battery manufacturing infrastructure that is largely dependent on critical raw material imports, notably cobalt, lithium, nickel, and manganese.

Gold Lion is now a vertically integrated precious metals mining and recycling company generating sustainable economic value for the lithium−ion battery/electronics supply chain.

Battery needs continue to be at the forefront of growth for the EV and electronic industries, we are actively seeking to acquire properties and establish partnerships that will yield the minerals required for the sustainable circular supply chain. The partnership with Ermazon and Elcora will allow Gold Lion to leverage its expertise and participate in large-scale battery metal production.

Gold Lion currently has 9 primary North American property claims and we are focused on exploring the full range of opportunities that these locations present for critical metals and minerals such as cobalt, copper, nickel, manganese, gold, silver, and zinc.

Furthermore, our environmentally benign proprietary recycling methodology will optimize the efficiency of the recycling process and will address the requirements of future customers and partners by drawing on the Group’s expertise in metals extraction process engineering and its operational expertise in hydrometallurgy.

Guy Bourgeois, Gold Lion’s CEO commented:

“Gold Lion is well-positioned to capitalize on the increased need for sustainable battery recycling and critical battery materials. According to the European Parliament, global battery and minerals supply chains need to expand 14-fold to meet projected critical minerals needs by 2030 and Gold Lion is actively transforming the battery supply chain.”

Pursuant to the option agreement, Ermazon will operate and manage the mining of the ore from the license for a fee equal to 20% of the pre-tax profits generated from such mining; Ermazon will manage the processing and refining of the ore mined from the license for a fee equal to 20% of the pre-tax profits generated by such processing and refining; Ermazon and Gold Lion will share the net profit from the license on an ownership pro rata basis; and Ermazon and Gold Lion will share on an ownership pro rata basis, the additional capital expenditures required to develop the License and for processing and refining.

In addition, the parties have agreed to form a joint venture respecting the License and will use their best reasonable efforts to negotiate, settle, execute, and deliver a JV Agreement in respect of the license.

The transaction is an arms-length transaction for the company and does not constitute a fundamental change or result in a change of control of the company, within the meaning of the policies of the Canadian Securities Exchange.

In digital conversations with experts in the energy and mining sectors we will consider how mines can move away from grid-connected power and embrace a more independent generation strategy.

Together with our speakers, we will try to understand the reasons for considering moving beyond the grid, the implications for the bottom line and what companies need to factor into their decision

In 2021, the mining industry accounted for 8.2% of South Africa’s GDP. During the COVID-19 pandemic, the industry carried the country’s GDP, as some operations continued. But what does this take and who is at the preface of this crucial process? My recent tour to Menar’s Kangra Coal mine in Saul Mkhizeville, Mpumalanga propelled a deep sense of appreciation for the men and women in helmets.

Our tour consisted of a group of twenty seasoned journalists and students from across Gauteng, who had been chosen to attend the 2022 Menar Mining Journalism Training, to better understand the intricacies of mining for informed reporting.

After a four-hour drive from Johannesburg to Saul Mkhizeville, we were welcomed into a rigorous safety class and indemnification process. From there, we headed to the changing room, where the work began. We put on our gear: long wool socks, one-piece overall, knee-high safety boots, thick belt, helmet, rubber hand gloves, glasses, earpiece, and a face mask. The few kg’s added were equivalent to 4 hours’ worth of work at my office in Johannesburg! (It was heavy).

As we took the bus to go have our safety lights fitted, the atmosphere changed from excitement to tension. I guess this is probably why most mine workers sing on their way to their shifts- to ease the tension. In addition to the extra 10kgs I had accumulated at the dressing room, a chemical oxygen self-rescuer was fitted onto the side of our belts in case of an emergency.

Now we were ready.

We then got to the mining site and started walking downhill toward the entrance. Lined up in silence, we all marched into the black hole…

I walked about 500m in heavy sludge that came up to the knee, depending only on the light fitted to my helmet. As we got further in, I began to see where all the magic started. Men and women were operating drill machines, some driving the mined coal toward the conveyor belt and others constantly checking for safety hazards. Greasy overalls and faces smudged in coal. It was all in a day’s work for them. The experience was both daunting and exciting.

As we finally headed out after the tour was done, I asked one of the officers who had accompanied us what made him jump out of bed every morning to spend 10 hours underground, where there’s minimal to no lighting, no glass walls and pot plants- where there was no coffee machine!

He turned and pointed to the coal that was being spewed out from the conveyor belt while a truck was loading it, and said “That has kept me coming back to work for the past 20 years.” I was inspired.

From that day, my perspective shifted.  Having a glimpse of the daily demanding activities of a mineworker, propelled a great sense of respect in me. We must also appreciate the new technology that allows miners to work in safe environments. LED lighting, proximity detections systems (PDS), netting, bolting, remote VR-led inspections and drilling all come in handy for these tough conditions.

Miners needn’t go on strike for a decent salary. They should not have to struggle to make ends meet. In fact, these are some of the workers that need to be treasured the most. If anything, I hope for a day where there will be a national day of mine workers in South Africa, that will serve as a constant reminder of the bravery, agility and service of these great men and women who risk their lives to keep the country going.

While mining output and exports are catalysts to the growth of an economy, it is always important to remember those at the helm of production.