Africa Barrick to start drilling gold prospect sites in western

UK-based miner Africa Barrick Gold (ABG) will commence drilling and testing on the western Kenya prospecting sites acquired 2012 in the current quarter.

The company has been mapping and collecting samples across sites since October, when it acquired the Kenyan unit of Australia-based rival Aviva Corporation, which held a number of prospecting businesses in Nyanza and Western provinces in a joint venture.

In January, it reported it had encountered multiple zones of high-grade traces of gold on the Ramula prospect within Siaya County after the minimal drilling carried out so far.

“Regional drilling and soil sampling programmes are expected to commence during the second quarter, following the completion of Presidential elections during the first quarter,” the company said on Friday.

“Additionally, we expect to complete a programme of diamond core drilling across the Ramula, Rosterman and Bushiangala prospects targeting sufficient gold mineralisation to move each target up our exploration and development pipeline.”

Africa Barrick said it was also planning tests on several gold prospecting sites in Kakamega and around Lake Victoria.

The Sh2.67 billion acquisition handed ABG access to exploration blocks estimated at about 2,800 square kilometres. Through the deal the UK-listed firm landed a 51 per cent stake that Aviva Mining (K) held in a joint venture with Lonmin Plc.

(Read: UK company buys Kenya gold rights for Sh2.7bn)

The deal also gave ABG access to Aviva Mining’s right to earn up to 75 per cent interest in a second joint venture with Advanced Gold Corporation.

The principal assets of the present joint venture between Aviva and Lonmin Plc are two special licences — SL123 and SL213 — located in Nyanza province’s Ndori and Siaya, respectively.

The second joint venture between Aviva and Advanced Gold has three main assets — SL265, SL266 and L267 — in Western province’s Bukura, Sigalagala and Rosterman, respectively. The firm also has large mining businesses in Tanzania.

Interest in the Kenyan mining sector has grown in recent years following the discovery of substantial reserves on valuable minerals such as gold, niobium and rare earth which are expected to rake in significant foreign income.

President Uhuru Kenyatta on Thursday created a special ministry to cater for the mining sector which remains neglected despite its huge potential.
The ministry will face a raft of challenges such as providing laws to promote the sector while ensuring the country benefits from mineral exploration.

Kenya lacks the appropriate laws and policies to manage the sector with some mining firms only paying royalties at their own discretion.

The country presently relies on the Mining Act of 1940 which has only been revised twice in 1972 and 1987 but with little in-put on contemporary practices in the sector such as fair sharing of revenue. However, a new Mining Bill is in the works.