Angola

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Source: CIA Factbook

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Copper

  • CityView Corporation Ltd (ASX:CVI) confirmed in September, 2007, that mineralised copper zones exist within the Longonjo metals project in Angola.
    These assay results, drawn from selective channel sampling of all of the old exploration adits at the Catabola prospect, will be targeted during the current drilling program.
    CityView conducted channel sampling of 4 adits, representing approximately 230m of continuous sampling.
    The assay results were encouraging, with the best results coming from adit 2 which cross cuts the entire mineralised zone at Catabola.
    Sampling revealed an average of 84 m at 0.81 per cent copper in adit 2 within which exists a richer zone of 48.2 m at 1.21% copper with a peak of 4 m at 4.7% copper in one of the breccia zones.
    CityView is developing two projects in Angola, Longonjo and Ucua. The field program started at the end of April and will continue for seven months.
    The Longonjo licence covers an area of 3,764 square kilometres southwest of the city of Huambo in central Angola. The licence area lies within the Congo Craton, an Archaean basement which has been overlain by Proterozoic and Eocene sediments and intruded by a series of Proterozoic granites and Cretaceous ultramafic pipes.Work to date has revealed two prospects within the licence area. These have been named Longonjo Carbonatite and Catabola.
    Longonjo Carbonatite consists of an outer rim of altered granitoid around a series of central polymictic, carbonate rich breccias. The distribution of carbonatites in Angola is loosely related kimberlites and they are generally situated within the same NE-SW trend as the kimberlites. Longonjo carbonatite is known to be prospective for niobium, tantalum and uranium minerals in particular, as well as other minerals commonly associated with carbonatite complexes.
    Catabola is an IOCG (iron oxide copper-gold) occurrence situated in the southern part of the licence area. Copper and iron oxide mineralization has been identified over a 1.6km strike length, with copper minerals including azurite, malachite and chrysocolla constituting approximately 50% of the host rock.
    The Ucua licence covers an area of 1,358 square kilometres and hosts the Dande Pegmatite Complex. This complex is potentially an important source of beryllium, with studies conducted during the 1970’s indicating the potential for the occurrence of economic quantities of beryllium. 59 prospects have been identified in the Licence area and these will be examined in the current field season.

Diamond

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West African Diamonds/Angola (Kevin Hulsey-Jewelry)

Diamonds were first discovered in Angola circa 1912, and from 1917 to 1975 the Portuguese parastatal, Diamang, had exclusive access to the mining of Angolan diamonds. After independence, Diamang became Empresa Nacional de Diamantes de Angola (Endiama)

"Angola’s diamond hype"
  • SMC (Sociedade Miniera de Catoca), which is owned by Endiama (32.8%), Russia's Alrosa (32.8%), Brazil’s Odebrecht Mining (16.4%) and the Diamond Finance CY BV Group (18%) operates the Catoca Mine, the world’s 4th largest kimberlite. Reserves are estimated at 60 million carats. SMC intends increasing production to 5 million carats per year.
  • SouthernEra obtained government approval for the opening of Angola's second kimberlite mine, Camafuca, in 2002. The Camafuca Project is located in the Lunda Norte province of northwestern Angola, approximately 20 km southeast of the town of Lucapa. The project area covers the primary kimberlite deposits associated with the Camafuca-Camazamba kimberlite pipe, which is one of the world's largest known undeveloped diamond resources, with a surface area of 160 hectares. The Camafuca Kimberlite pipe is elongate, with its long axis oriented north-south. The pipe is 3,3 kilometres long and averages about 500 metres in width. Results of feasibility studies and exploration activities have shown that the various kimberlite facies of the Camafuca-Camazamba pipe, from surface to a depth of 145 m, contain an estimated total inferred mineral resource of some 209,5 million cubic metres at an average grade of 0,111 carats per cubic metre (cts/m3). This is equivalent to an estimated in-situ diamond content of 23 million carats.
  • Development of Angola's third kimberlite mine Camatchia -Camagio was granted to a joint venture with similar shareholders as Sociedade Miniera de Catoca.
  • Petra Diamonds, in a joint venture with BHP Billiton, is exploring the Alto Cuilo kimberlites in the northeast of the country. Petra Diamonds Ltd and its Angolan partners, Endiama and Organizacoes Moyoweno, began drilling the diamondiferous kimberlites in 2004.
  • BHP Billiton is involved in a second joint venture with a Portuguese bank, Escom; the partners hold three concessions covering 12000km². They are at an earlier stage of exploration.
  • Xceldiam Diamond Exploration & Mining's interest in the Luangue Concession are held through the Projecto Luangue Joint Venture in which Xceldiam holds a 40% interest in the alluvial and a 39% interest in the kimberlite licenses. The other participants in the Projecto Luangue JV are the Angolan state's diamond company, Endiama, and a consortium of Angolan nationals, Bapsil Service Lda. In May 2006, Xceldiam entered into a strategic cooperation agreement with Petra Diamonds. In terms of this agreement information is shared and technical, operational and other related activities are co-operated on in the development of Xceldiam’s Project Luangue and Petra’s neighbouring Project Alto Cuilo (where the latter is in JV with BHP Billiton). Petra Diamonds will buy Xceldiam’s Angolan assets in an all-share transaction valued at £32 million, and it has raised a loan of $20m through its partner BHP Billiton to develop Angolan diamond projects, Petra CEO Johan Dippenaar said on March 1, 2007.
  • Trans Hex Group has been involved in the mining of the Fucauma (32% share) and Laurica (35% share) alluvial deposits since 2003 and has signed a contract with state diamond miner, Endiama, on the Luana deposit (33% share). The company has also continued kimberlite exploration on its Gango concession where potential for a moderate to low diamond bearing kimberlite has been identified.
  • Sociedade de Desenvolvimento Mineiro de Angola, S.A.R.L. (SDM) is a joint venture between Endiama (50%) and Odebrecht (50%) exploiting the Tazua alluvial deposit at its Luzamba project.
  • Sociedade Mineira do Lucapa (SML), representing Endiama (51%) and Sociedada Portugese de Empreendimnetos (49%), along with operators ITM Mining, operate several alluvial concessions in the Lundes, viz the Calonda project that produced 199 000 ct, the Mufuto project that yielded 244 000 ct and the Lucapa project 69 000 ct in 2001. SML also holds a 15% interest in Southern Era’s Camafuca project.
  • Associacao Chitotolo, owned by Sociedada Miniera de Lumanhe (15%), ITM Mining (50%) and Endiama (35%) mines alluvial deposits and produced 232 000 ct in 2001.
  • De Beers involvement in Angola: De Beers first undertook grassroots prospecting in Angola from 1970 to 1975 as the company Condiama, a joint venture with Diamang, the Portuguese parastatal. Operations terminated with the outbreak of civil war in mid-1975. Diamang became Endiama, and De Beers later returned as MATS (Mining and Technical Services) in a joint venture with Endiama, operating from 1979 to 1984 mining the alluvial deposits in the Lunda provinces. Following the conclusion of negotiations with the Angolan Government in 1996, prospecting agreements were entered into for three concession areas being Lunda northeast, Quela (central) and Mavinga in the southeast. From 1996 to 2001 De Beers embarked on an ambitious prospecting programme in partnership with Endiama, to discover and evaluate kimberlites. Due to poor security conditions on the ground at the time, no work was possible in the Quela and Mavinga concessions, but in the Lunda concession some 60 kimberlites were discovered. Most are located under deep sand cover and require further investigation and detailed sampling before some idea of their economic potential is understood. Over this period De Beers spent over U$32 million on the prospecting programme alone. Operations were suspended in May 2001 pending negotiations with the Angolan Government and Endiama on the terms applicable to mining and marketing of diamonds from mines discovered from De Beers prospecting. Following a period of four years in which De Beers could not operate in Angola, in its session of the 27th May 2005, the Angolan Council of Ministers approved the Joint Venture Contract between Endiama and De Beers Angola Prospecting Limited – DEBAP, to exercise the mineral rights for prospecting, evaluation and research of kimberlite deposits in the Lunda North Concession area. The Contract was signed on the 17th of June 2005, and the Joint Venture Company is known as ENDEB. Prospecting operations were scheduled to commence in the third quarter of 2005.
  • Gem Diamonds signed a Cooperation Agreement and an option to acquire an interest in the Chiri kimberlite concession in the Lunda Norte province of Angola. A feasibility study will be conducted over Chiri, whereafter Gem Diamonds will have an opportunity to acquire up to 20% of Chiri, a known diamondiferous kimberlite cluster. Chiri is located approximately 5 km from Catoca, one of the world's largest diamond mines and amongst a cluster of other known kimberlites. The Cooperation Agreement concluded with Avantis Angola Inc also provides for a joint venture relationship for the future exploration and exploitation of other Angolan diamond assets.
  • Pangea Diamond Fields plc (Also active in Congo -Kinshasa, Central African Republic and South Africa) has been pilot mining the Cassanguidi alluvial project, Lunda Norte Province, north eastern Angola. Diamondiferous gravels are extracred from river terraces and hill-wash deposits using conventional open pit methods and river bed gravels, by pumping from a raft. A total of 25,416 cts was produced by pilot mining from Cassanguidi during the period February 2005 to March 2006. Stone sizes for the open pit operation have varied between 0.23 ct/stone and 0.42 ct/stone, with an average of 0.35 ct/stone. Continuing mining operations were hampered in the fourth quarter of 2006 due to the excessive seasonal rains, resulting in diamond production being significantly less than expected; 5,690 carats were produced during the quarter. Average diamond revenue from sales to Sodiam, Endiama’s marketing arm, have been disappointing and, in the Company’s opinion, well below market value. Plans to develop the project further will be deferred until there is a mechanism in place to ensure sales at market-related levels can be achieved and are sustainable. Discussions regarding the sale and marketing procedures are ongoing.
  • Nare Diamonds Ltd (Lonrho Mining Ltd) has signed a joint venture agreement with state-owned Endiama to develop the 3,000 sq km Lulo diamond concession in Angola. The Lulo concession is located in the Cuango River catchment area within the Lunda Norte Province of northeastern Angola.
  • International Gold Exploration AB has been granted a concession right in the Luanda Norte province, one of Angola's richest diamond regions, and one in the Kwanza Sul province. The Kwanza Sul province hosts the third most important diamond primary source in Angola. Luxinge and Nhefo in Lunda Norte and Cariango in Kwanza Sul are both primary and secondary diamond exploration projects.
    Based on the results from the bulk-sampling program underway, the concessions are expected to produce 120,000 carats per year once IGE enters into its 5-year full production program in 2009. The Angolan government authorised the concession of rights of diamond prospecting of the Lacage kimberlite, Luacheze district, eastern Moxico province, to the National Diamond Company of Angola (ENDIAMA), in an area of 3,000 square kilometres. In the same document the government authorised and approved the setting up of the Association in Participation in Lacage, between ENDIAMA, International Gold Exploration (IGE), the "Sociedade Mineira do Leste" (Somileste) and Magma - Commerce, Industry and Supply of Services.
    Participation quotas of the referred contract are 51 percent for ENDIAMA, 43 for IGE, four for Somileste and two for Magma.
  • Signet Mining Services Ltd secured a concession to mine diamonds in Angola. The pipe Chirri is situated near the town of Saurimo and approximately 5km from the Catoca kimberlite mine.
    Catoca and Matikara have conducted historical work at the site, including bulk sampling and delineation drilling. Although the drilling programme was small, the pipe was confirmed to be to be over 600m in width and estimated to be as large as 50 ha.

Gold in Angola

Gold Home

No industrial gold mining operations exist in Angola. Approximately 90% of the country's production has been mined by artisanal miners. Both Huila and Cunene Provinces have been prospected by companies such as Ashanti Gold Company Limited and Anglo American plc in the past.
  • Gold mining in Angola has largely been concentrated in the Maiombe region of Cabinda province. It has been reported that approximately 500 kg of gold have been removed from this region, mainly from small tributaries of the Luali River in central Cabinda. The alluvial gold was associated with vein quartz in granite. The average recovered grade varied between 1 and 2g/m3 however, a number of higher grade "pockets" were recorded. Some 90 percent of Angola’s gold production is from the area, but other alluvial gold deposits are found in Kwanza Norte, Huila and Cunene provinces.

  • The Mpopo deposit is the largest known primary gold deposit in Angola, some 36 km south-west of Cassinga. This deposit comprises auriferous quartz veins, and has an estimated possible mineral resource of 700,000 t at 8 g/t. It is thought that 23 300 t of ore at 6 g/t gold (a total of 140kg gold) have already been removed from this deposit. Alluvial placer deposits also occur nearby, and have been mined in the past.

Oil and Natural Gas

China reportedly accounts for 35% of oil exports from Angola.

Click HERE for an overview

Click HERE for a Concession Map showing operators and production figures

According to Oil and Gas Journal (OGJ), Angola had proven oil reserves of 8.0 billion barrels as of January 2007. The majority of the reserves are located in Angola’s offshore blocks. Blocks 15 and Zero have been the most prolific offshore blocks. Proven reserves are also located onshore near the city of Soyo.
Angola’s crude oil production has more than quadrupled over the past two decades. In 1986, crude oil production averaged 280,000 barrels per day (bbl/d), while production in 2006 averaged 1.4 million bbl/d. According to EIA estimates, Angolan oil production is set to reach two million bbl/d by 2008, when new deep-water production sites are expected to come online. Also consistent with EIA estimates, in December 2006, the World Bank announced that Angola will likely see peak oil production in 2011 at 2.6 million bbl/d followed by production declines if there are no new oil discoveries.
Angola exports crude oil primarily to China (477,000 bbl/d as of November 2006) and the United States. In 2005, the United States imported approximately 473,000 bbl/d of oil from Angola, which made Angola the eighth largest supplier of crude oil to the United States. As of October 2006, the United States had imported an average of 526,000 bbl/d of oil from Angola. Angola also exports crude oil to Europe and Latin America.
In 1976, the Angolan government created a national oil company called the Sociedade Nacional de Combustiveis de Angola (Sonangol). In 1978, Sonangol became the sole concessionaire for oil exploration and production in Angola. Sonangol works with foreign companies through joint ventures and production sharing agreements (PSAs), while funding its share of production through oil-backed borrowing. Major international oil companies operating in Angola include BP, Chevron, Devon Energy, ExxonMobil, Maersk, Occidental Petroleum Corporation , Roc Oil and Total.
  • Oil production: 1.6 million bbl/day (2005 est.)
  • Oil proved reserves: 25 billion bbl (2006 est.)
  • Natural gas production: 750 million cu m (2004 est.)
  • Natural gas proved reserves: 45.87 billion cu m (1 January 2005 est.)
  • Cabinda Gulf Oil Company (CABGOC), a Chevron subsidiary and has been the operator of Block Zero since 1955. In May 2004, Sonangol and the Angolan government extended CABGOC’s contract, which was set to expire in 2010, to 2030. Other partners on Block Zero include Sonangol, Total and Eni. Block Zero is located offshore Cabinda province and accounts for approximately 370,000 bbl/d of Angola’s oil production, or almost one-third of Angola’s total crude oil production. In addition to Block Zero, CABGOC is the operator of deepwater Block 14. A total of nine discoveries have been made on the block with Kuito being the first in 1997. Two years later, Kuito became Angola’s first producing deepwater field. Chevron's combined average net production in Angola and Nigeria was 264,000 barrels of oil equivalent per day in 2005.
  • ExxonMobil's Kizomba B project in deepwater offshore Angola Block 15 commenced production in July 2005. Block 15 has estimated recoverable hydrocarbon reserves of 4.5 billion barrels, and at peak production, Block 15 is expected to produce 750,000 bbl/d.
    The current production rate is more than 250 thousand barrels of oil per day.
  • Total's Girassol field was discovered in April 1996 by Elf Exploration Angola. Just over 2 years later, on 8 July 1998, the company obtained the official go-ahead from Angola’s national oil company Sonangol and the Girassol partners to launch a development project. Girassol, which was the first field on Block 17 to go into production. It has the capacity to produce 200,000 barrels per day. Total operates Block 17 with a 40 percent share, while Sonangol is its franchise holder. Other shareholders include ExxonMobil, BP, Statoil, and Norsk Hydro. Total has six discoveries on Block 32, which is located in ultra-deep water, 40 miles from Block 17’s Girassol find. Currently, the discoveries are being analyzed for a potential joint venture project. Total, as operator of the block, is joined with partners Marathon Oil Company, Sonangol, ExxonMobil and Petrogal.
  • Petrobras began operating in the country almost thirty years ago, in 1979, and has exploration and production agreements via participation in six offshore Blocks, one in production (Block 2) while the other 5 being explored.
  • In February 2003, Devon Energy Corporation acquired a 25 percent stake in Block 24 from ExxonMobil. This acquisition increased Devon Energy’s total share of the block to 40 percent, making the company the operator of the block. ExxonMobil retains a 20 percent share. Sonangol and Petronas are also partners on the block. Devon Energy Corporation owns interests in three Angolan offshore exploratory blocks (blocks 10, 16 and 24) and one onshore block.
  • In February 2004, Sonangol approved BP’s plans to develop the Greater Plutonio project in Block 18. Six fields (Colbalto, Cromio, Galio, Paladio, Platina, and Plutonio) will be developed using a single FPSO. Scheduled to come online in mid-2007, the Greater Plutonio project is expected to produce 240,000 bbl/d. BP maintains a 50 percent interest as the operator of Block 18 and Sinopec owns the other 50 percent share. In October 2006, BP announced its 11th discovery on Block 31. Industry experts believe Block 31 to contain 500 million barrels of commercial reserves. The block is located 118 miles offshore. BP is operator with 26.67 percent interest and is joined with partners ExxonMobil, Sonangol, Statoil, Marathon, and Total.
  • In December 2006, Sonangol awarded French-based Technip a $70 million contract to develop the Gimboa field in Block 4.
  • Tullow Oil plc concluded a farm-in agreement with Sonangol P&P in November, 2005, acquiring a 15% interest in Block 10/05 offshore Angola. Block 10/05, located in the Southern Kwanza Basin, is operated by Devon Energy. In early January 2006 Tullow completed a further farm-in agreement with Ocean Angola Corporation, a subsidiary of Devon Energy, acquiring a 15% interest in Block 24/99. In late July 2006 Tullow was formally advised that it had been awarded a 50% operating interest in Block 1/06, a 3,839 sq km oil exploration concession in the Lower Congo Basin, offshore Angola. The Production Sharing Contract came into force in December 2006. Block 1/06, which extends from a water depth of 40m to approximately 300m, contains three undeveloped oil fields, Pitangueira, Bananeira and Sapesapeiro.
Source: Tullow Oil

  • On November 2, 2006, VAALCO Energy, Inc officially signed a Production Sharing Agreement (PSA) for Block 5 offshore Angola.
    VAALCO has a 40% interest in the block, and is the operator of the concession for its partners Interoil Exploration & Production ASA (40%) and Sonangol (20%). Block 5 covers an offshore area of approximately 1.4 million acres.
  • In addition to licensing rounds, Angola signed various bilateral oil agreements in 2006 with Russia, Sao Tome and Principe, South Korea and Venezuela. The agreements promote increased collaboration on future oil exploration activities in Angola.


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