UNTAPPED ’S MINERAL POTENTIAL

UGANDA’S MINERAL SECTOR

LEGAL AND REGULATORY FRAMEWORK, MINERAL PROSPECTS AND OPPORTUNITIES FOR INVESTMENT

ENG. MAYANJA JACKSON LUSABUNGA [email protected] +256-7888-33067, +256-7519-75639 LEGAL FRAMEWORK

• Mining Act, 2003 • Mining Regulations, 2004 • Mining Policy, 2001 • Under review to benchmark with the best international practices in the mineral sector

• Licenses granted include Prospecting, Exploration, Retention, Location licernces as well as Mining Lease OVERVIEW OF GEOLOGICAL POTENTIAL

• 75% of the geology of Uganda is dominated mainly by Precambrian rocks ranging from Archean (>2,500Ma) and Lower Proterozoic to Middle Proterozoic (2,500-1,000Ma).

• Uganda has favourable geology for discovery of world class deposits due to the country’s location at crossroads of major regional structural trends.

• National Geological Mapping and Airborne Geophysical Surveys coverage is at 80% of the country.

• Geological maps at scales of 1:50,000; 1:100,000 and 1:250,000 are available.

OVERVIEW OF MINERAL POTENTIAL

• Minerals mined in Uganda include: gold, copper, cobalt, tin, beryllium, tungsten, vermiculite, tantalite- columbite, phosphate, limestone/marble and silica sand.

• Mineral occurrences with potential include: PGM, REE, nickel, zinc, lead, precious stones including diamond and dimension stone. GENERAL GEOLOGY AND MINERAL OCCURENCE MAP OF UGANDA

STRATEGIES FOR MINERAL SECTOR DEVELOPMENT

• Uganda has acquired extensive geoscientific data: airborne surveys, mineral resources assessment and this has resulted into several new mineral prospects.

• Review of current Mining Code with benchmarking from international practices enshrined in the AMV and other mining codes like A

NEW MINERAL TARGETS

With new geophysical and geological data integrated several new mineral targets were identified:

1. Iganga gabbro intrusion -Nickel – PGE potential. 2. Zeu (Zombo District)- gold potential. 3. Moroto area -Chromite–PGE-Marble potential 4. Kidera (southeast Uganda)-Kimberlite Potential 5. Naigobya Geophysical Anomaly (Ni, Cr, Cu and Co and Rare Earth Elements) 6. Bukusu carbonatite (Limestone, Phosphate, Iron ore, Titanium,Vermiculite and REE potential) 7. – Falls area (Ni,Cr,PGE, Fe potential) 8. Kitaka–Buhweju Area (gold potential) 9. Packwach area -Diatomite prospects 10. Kaiso-Tonya-Kaolin-Bentonite clays 11. Mayuge area- Iron ores 12. Kafunzo area -Nickel potential 13. Makuutu area - radiometric Anomaly (Rare Earth and Uranium potential) 14. Hoima-Kafu area -gold potential 15. Kaliro-Ivukula area -gold potential 16. Aboke-Alo area - gold potential 7 17. Buhara- Kabale -Iron Ore 18. Butogota –Kanungu-Rutenga-Iron Ore INVESTMENT OPPORTUNITIES IN THE MINERAL SECTOR

Precious Metals

• Gold and other precious metals occur in districts of: Bushenyi, Mbarara, Kabale, Kisoro, Rukungiri, Kanungu, Busia, Mubende, Karamonja region Hoima, & in many streams of West .

CROSS ROADS OF MAJOR REGIONAL TRENDS (Courtesy of AMF) - Major Regional Structures

REGIONAL GOLD DEPOSITS (Courtesy of AMF) GOLD OCCURENCES IN UGANDA

Moyo

Kitgum Arua Abim Moroto

Kapchorwa

Fortportal Mubende Iganga Busia Bushenyi Rukungiri Mbarara Kabale Kisoro GEOTHERMAL RESOURCES

• Geothermal energy, can contribute in many important ways to resolving one of the fundamental challenges faced by Uganda - that is how to acquire energy to assure the health, prosperity, and security of Ugandans. • Geothermal energy resources is a perpetual, self-replenishing, cost- competitive and inexhaustible energy resource. • Currently, there is an on going project aimed at developing the country’s geothermal resource. • Also a number of companies have been granted exploration licenses to develop this resource.

GEOTHERMAL RESOURCES MAP

13 GEOTHERMAL RESOURCES LICENSES

14 TECHNOLOGY

Some of the geophysical equipment used in geothermal exploration MINERAL CONCESSIONS MAP OF UGANDA ACTIVE MINING AREAS

Anglo Ugandan Corporation-Gold Tororo Cement- Jan Mangal (u) Ltd- Limestone Gold

Kisita Mining company limited-gold Tororo Cement- Limestone Ataco services Ltd.-Gypsum Gulf resources - Vermiculite

Greenstone Kilembe resources Ltd.- Mines- gold Limestone Building Majesties- Granite Hima (Dimenson Licementmite stone) d-Limestone A FEW NORTABLE PROJECTS WORTH INVESTMENT

• There are quite a number of projects that have been started but they lack the required financial push to reach their optimum capacity and profitability. • These projects have gone through the initial exploration phase with initial pre-feasibility completed. These include: LUBALI MINE – KANYEMERA HILL MINING PROJECT UNDER OPTIMA MINES AND MINERALS LIMITED

• Underground mining operation under development to 100t/d with average grade of 5g/t • Small to medium scale Mineral processing operations with two (2) 60 t/d (total 120 t/d) CIP gold processing plant. • Mining License over an area of 48 Ha • Exploration License measuring 140 SKm 30km away from the operation • An inferred resource of over 791,700 tonnes of Ore at an average grade of 5.89g/t ( total insitu gold value of 4,663 Kg of gold) • An initial Investment of 5 Million dollars invested • Need for additional investment to uplift project to medium scale and increase gold production to over 50 kg per month NAMAYINGO GOLD PROJECT ALJOUDA MINING COMPANY LIMITED

• Two high potential exploration properties covering an area of 200 square kilometers. • Mining concession measuring 16ha in size with a 100t/d CIP gold processing operation • Eight (8) parallel reefs with an inferred resource of 624,000 Tonnes at an average grade of 2g/t • An initial investment of $4m USD already injected in the project • Need for additional investment to increase mine production. OROM GRAPHITE PROJECT Consolidated African Resources Limited

• 3 Contiguous Exploration Licenses covering 525 Square Kilometers • Measured resource of 120mt at 8% graphite 40% to 80% in large (+180µm) to Jumbo (+300µm) size fraction. • Graphite grade good for production of lithium batteries and graphine. DAO MARBLE LIMITED

• Mining Concession measuring 4 square kilometers • Measured resource of 23MT white marble suitable for Dimension stone and Calicium Carbonate/lime (Ca2CO3) production • Assets include Micro-Mill for lime, Mining Pit and Equipment for productions of Marble blocks and a marble cutting and polishing plant with a capacity of 5000t/month • An initial $10mUSD investment already completed OTHER PROJECTS UNDER DEVELOPMENT

• African Minerals Limited marble Mining and Lime production operation

• Auranda Minerals Ltd Tantalite prospects in Western and Central Uganda.

• Mulin Mines and Minerals Limited over 100m tonnes Limestone Prospect in western Uganda

• Iron ore Mining and processing in Kabale CONCLUSION

• Uganda possesses good potential for variety of minerals: Precious metals & stones, base metals, industrial minerals and geothermal.

• The on-going further exploration by companies using the new acquired geo-scientific data has generated more reserves, e.g., a new target at Kamalenge-Kyasampawo identified by the airborne geophysical surveys was recently followed by AUC Mining Company with detailed mapping and numerous gold bearing rocks (quartz veins) which bear an estimated five (5) million troy ounces of gold on the surface have been estimated; and Gulf Resources Ltd using the new data increased reserves of vermiculite from 5MT to 49.9MT.

• Uganda has put in place investor friendly policies and legal regimes for good returns on investment opportunities in the mineral Sector.