Guinea

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Source: CIA Factbook

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Richly endowed with minerals, Guinea possesses over 25 billion metric ton of bauxite--and perhaps up to one half of the world's reserves. In addition, Guinea's mineral wealth includes more than 4 billion tons of high-grade iron ore, significant diamond and gold deposits, and undetermined quantities of uranium.

Aluminium

The country has reserves exceeding 25 billion metric t of bauxite or approximately half the known world reserves. Joint venture bauxite mining and alumina operations in northwest Guinea historically provide about 80% of Guinea's foreign exchange. The Compagnie des Bauxites de Guinea (CBG) is the main figure in the bauxite industry. CBG is a joint venture, in which 49% of the shares are owned by the Guinean Government and 51% by an international consortium led by Alcoa and Alcan. CBG exports about 14 million metric tons of high-grade bauxite every year. The Compagnie des Bauxites de Kindia (CBK), a joint venture between the Government of Guinea and Russki Alumina, produces some 2.5 million t annually, nearly all of which is exported to Russia and Eastern Europe. Dian Dian, a Guinean/Ukrainian joint bauxite venture, has a projected production rate of 1 million t per year, but is not expected to begin operations for several years. The Alumina Compagnie de Guinée (ACG), which took over the former Friguia Consortium, produced about 2.4 million t of bauxite in 2004, which is used as raw material for its alumina refinery. Both Global Alumina and Alcoa-Alcan have signed conventions with the Government of Guinea to build large alumina refineries with a combined capacity of about 4 million t per year.
Alcoa is present in Guinea as a 45% shareholder of Halco Mining, a partnership which owns 51% of Compagnie des Bauxites de Guinee (CBG). CBG, a partnership with the Government of Guinea, has exclusive rights to mine bauxite in Guinea's Sangaredi Plateau. In addition to mining in Sangaredi, CBG operates a port in Kamsar for drying and shipping bauxite to refineries worldwide.
Global Alumina Corporation is negotiating to form a joint venture to develop and operate the company's 2,8 million tonne alumina refinery project in the Republic of Guinea with the BHP Billiton group, Dubai Aluminium Company Limited (DUBAL) and Mubadala Development Company PJSC . DUBAL is the owner of one of the largest single site aluminum smelters in the western world. It is wholly owned by the Dubai government and produces and exports primary aluminum products to more than 40 countries world-wide. Canada-based Global Alumina Corp. would retain a one-third stake in the refinery, which is due to start production early in 2009. The Sangaredi Refinery project involves construction of a three million tonne/year alumina refinery, a nine million tonne/year bauxite mine, and associated infrastructure. Global Alumina retains a 33.3% stake with Dubai Aluminium and Mubadala Development Company owning 25% and 8.3% respectively.

Diamond

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  • AREDOR, a joint diamond-mining venture between the Guinean Government (50%) and an Australian, British, and Swiss consortium, began production in 1984 and mined diamonds that are 90% gem quality. Production stopped from 1993 until 1996, when First City Mining of Canada purchased the international portion of the consortium.
  • De Beers systematically prospected for kimberlites within Guinea between November 1995 and February 2004. During this period, geophysical surveys were conducted along with the collection of reconnaissance and follow-up samples. From these activities De Beers were successful in the discovery of 25 new kimberlite occurrences. Between beginning of 2004 and May 2006, no active exploration was taking place, but De Beers still maintained a presence in the country. In 2006, the Guinean subsidiary company Debsam Guinea was awarded three exploration licences in the eastern part of the country. Currently a team of geophysicists is on site conducting preliminary assessments.
  • Trivalence Mining Corporation (Canadian, TMI.V, also active in Botswana) has restarted its diamond production at the Aredor alluvial mine. Two of the company's Manitowoc draglines are operating at BAX Block, based on the sampling data from Bridge Oil the BAX Block is estimated to contain an indicated resource of approximately 1,8 million tons of gravel to yield a projected 100,000 carats.
  • African Diamonds plc (AFDM.PK, AFD.L) and its wholly owned subsidiary Grampian Resources Limited, holds the rights to three Exclusive Exploration Licences, Seria and Bomboko, located on the River systems of Bomboko and Bonbokoni, and Fangamadou, located on the flood plains of the River Meli.
  • West African Diamonds plc, the AIM-listed diamond exploration firm, has won the right to explore the six hectare Droujba kimberlite pipe in Guinea.

Gold in Guinea

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Geology

Proterozoic Birmian rocks which consist of turbidite facies sedimentary sequences. There are two main types of gold deposits that occur in the Siguiri basin: laterite mineralization and in situ quartz-vein-related mineralisation. The laterite mineralization occurs as aprons of colluvial or as palaeo-channels of alluvial lateritic gravel adjacent to and immediately above the in situ vein-related mineralisation, which is hosted in meta-sediments with the better mineralization associated with vein stockworks that occurs preferentially in the coarser, brittle siltstones and sandstones.
  • AngloGold Ashanti (NYSE:AU; JSE:ANG) operates the Siguiri mine, situated in the Siguiri district in the north-east of Guinea, about 850 kilometres from the capital city of Conakry. It produced 246 000 oz gold in 2005. Proved and probable ore reserves amounted to 60,3 million t grading 0,85 g/t Au
  • Crew Gold Corporation (UK, TSX:CRU.TO) operates the Lefa mine (Lero-Karta mine), approximately 700 km north-east of Conakry. Proven reserves amount to 24,9 million t at a grade of 1,7 g/t Au or 1,43 million oz gold. After completion of a new CIP plant, expected production will be between 320 000 and 350 000 oz gold per year.
  • Semafo's Kiniero mine is located 500 km north-east of Conakry in central Guinea. It produces approximately 60 000 oz of gold per year and has reserves of 5,07 million t averaging 3,12 g/t Au.
  • Wega Mining is exploring gold anomalies in the north-eastern part of the country called Haute-Guinée, in Mandiana and Siguiri préfectures.
  • Cassidy Gold Corporation announced on December 4, 2007, that drilling resumed at the company's 100% owned Kouroussa Gold Project in Guinea.

  • Siguiri Basin Mining Inc. (SBMI) has a joint venture with Consolidated Mining Inc which includes 5 miles of the Tinkisso river. A dredging permit was granted on August 9, 2002 for a period of 10 years. The permit is renewable in incremental five-year periods and it awarded the exclusive right to mine for gold and related minerals in the bottom sediments of the Tinkisso river.

Nickel

  • Mega Uranium Ltd (MGA.T) explored the Mt Kakoulima Cu-Ni-Co-PGM Property in Guinea. The project, located 35-50 km northeast of Conakry, the capital and principal port of Guinea, comprises two contiguous exploration licences (total 298 km2), covering a 30 km strike length of the northern and southern margins of the mafic/ultramafic Kaloum Igneous Complex (KIC). Between 1996 and 2001, previous explorers Semafo/Afcan and Rio Tinto intersected several narrow high grade Ni-Cu-Co-PGM sulphide intervals within a gabbro-pyroxenite unit in the upper part of the KIC. In 2005, drilling continued to intersect sulphide disseminations and blebs in the immediate vicinity of the basal contact within pyroxenite/gabbro plus transitional and brecciated lithologies. Overall, in 2004 and 2005, a total of 9303,5 m was drilled in 23 diamond core holes, 16 on the northern contact zone and 5 in the southern area. Drilling results included 14,7 m @ 0,35% Ni, 0,39% Cu, 0,17 g/t Pt and 0,79 g/t Pd, and maximum values over one metre intervals of 0,45% Ni and 0,47% Cu.
  • FNX Mining Company Inc (AMEX:FNX) (TSX:FNX) announced in February, 2008, that they have signed an option/joint venture agreement with Maple Minerals Corporation (MPM-TSXV) on FNX's recently optioned Mt. Kakoulima Ni-Cu-Co-PGE exploration project in Guinea. Maple will provide the initial exploration funding and FNX will provide the mineral rights along with geological and exploration expertise.

Oil and Natural Gas

Houston's HyperDynamics Corporation has been meeting with government officials to discuss hydrocarbon development plans in the country. The company has exploration and data marketing rights for the entire continental margin of Guinea, which covers 210 miles of coastline and up to 150 miles offshore.

Uranium

  • Murchison United NL (Australian) has been granted six uranium exploration licences and started drilling the Firawa prospect in southern Guinea in May, 2007. The company intends drilling the Bohoduo prospect and doing reconnaissance exploration at the Sesse uranium prospect during 2008.

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