THE REPUBLIC OF THE MINISTRY OF MINERALS

Geological Research Authority of Sudan (GRAS)

MINERALS POTENTIAL OF THE SUDAN & INVESTMENT OPPORTUNITIES

By Dr. M. Abu Fatima: Director General of (GRAS) - 2018 Outlines 1. Introduction 2. Pan African 3. Why Sudan 4. Mineral Potential of the Sudan 5. The Mineral Sector Developments 6. Investment Opportunities in Mineral Development 7. Way forward

2 Web site: www.gras-sd.com Email: [email protected] Fax: 249 11 776681 Sudan Mining has a broad impact on the national economy. Mining provide jobs, pays salaries and generates value in all 18 states.

Infrastructure in Sudan is challenging due to fast growth 3 Sudan | Diversely rich country

GDP $95.6 BILLION • LARGEST ECONOMY IN EAST AFRICA (6TH IN AFRICA)

39.6M POPULATION • OVER 50% ARE BELOW 25YRS

$2,140 GDP PER CAPITA • HIGHEST IN EAST AFRICA

200 MILLION ACRES OF ARABLE LAND MINING – 2ND GOLD LARGEST PRODUCER IN AFRICA

VAST UNDERGROUND WATER RESERVES POWER & IRRIGATION – THE RIVER NILE

150 MILLION LIVESTOCK HEADS OIL & GAS RESERVES 4 The mineral sector’s influence on Sudan’s economy was significant because of petroleum production and refining. In recent years, cement and gold production became more significant to the Sudanese economy. In 2017, Sudan played a significant role in the global production of gold, accounting for nearly 4% of the world’s gold mine output.

5 Sudan | Post Sanctions

“Revival Beckons for Sudan as U.S. Lifts Economic Sanctions” - Bloomberg, 30th January 2017

• Banking Community Engagement:

– Have engaged in several forums inviting banking officials to interact with US officials including OFAC to clarify “risks” of doing business with Sudan

– Reengagement by regional and international banks aligning with sanction removal

– Employing a risk-based approach Vs. wholesale “derisking”

• International Trade and Development Organizations:

– Sudan to renegotiate debts and reactivate memberships

– Potential availability of institutional funding and finance

– Potential availability of Export Guarantees /Insurance for Sudan Business

• International Business Community:

– Reevaluate Sudan’s risk profile – move from sanctions risk to reputational risk

– Reinitiate dormant/expired agencies impacted by sanctions as first step

– Products that were previously restricted due to US content now open for 6 business ASM GLOBAL Sudan within the 20 countries producing 38% of PERSPECTIVE world gold mine production • 30 million ASMs in 50 countries Worldwide • 12% of global Gold 7 4 production (+/-350 tonnes)

Globally total Artisanal 3 workers are 30 million, 10 1 million are in Africa and more than 1 million in Sudan 9 (10% relative to Africa) 10 Ton 8 6 1 403 2 2 250 3 230 5 4 230 5 170 6 165 7 102 8 95 9 90 7 16 10 89 Mining Objectives

And add value to the mineral product - Diversify the sources of national income in order to revive the economy

- Increase Gross Domestic Product and enhance sustainable development

And attract foreign mining investment Invitation Card

 Sudan is located in the Arabian Nubian Shield (ANS) and covers a big surface area and has

diversified geology which merges with neighboring African countries.

 Sudan has a huge mineral potential, especially in the Nubian Shield, waiting to be explored , evaluated and

developed.

 The extent and orientation of major Pan-African suture zones in Sudan and adjacent areas must be researched

and mapped to guide mineral exploration.

 Infrastructure is developing, and the environment of investment is encouraging.

 Invitation is extended to investors to visit and explore Sudan, and to invest in the mineral sector. African crustal basement (after Gubanov & Mooney 2009).

The African continent preserves a long geological record that covers almost 75% of Earth’s history. The Pan-African orogeny (c. 600–500 Ma) brought together old continental kernels (West Africa, Congo, Kalahari and Tanzania) to form Gondwana and subsequently the supercontinent Pangaea by the late Palaeozoic. The break-up of Pangaea since the Jurassic and Cretaceous, primarily through opening of the Central Atlantic, Indian, and South Atlantic oceans, in combination with the complicated Douwe J. J. Van Hinsbergen et al. Geological subduction history to the north, gradually 10 Society, London, Special Publications 2011 shaped the African continent. Why Arabian-Nubian Shield (ANS)?

Arabian-Nubian Shield  +1,000 recorded ancient copper and gold mines

Arabian-Nubian Shield  +6,000 Prospects and Occurrences

 Only a handful are currently in production or, under development for mining

 Multiple deposit styles already demonstrated (Orogenic, VMS, Epithermal, Intrusion hosted, porphyry copper) Australian Shield Comparison to the Canadian and Australian Shields

 The Canadian and Australian ‘Shields’ host a number of world class ‘mining camps’ of varying mineral types (base metals, precious metals, diamonds, uranium, rare earth elements)

Canadian Shield  This implies the Arabian-Nubian Shield (ANS) is under explored and has many world class discoveries to be made 11 Gold & Base Metal Mineral Occurrences in the ANS

Orogenic Gold Occurrences - Arabian Nubian Shield (Peter Johnson Base Metal Mineral Occurrences - Arabian Nubian Shield (Peter Johnson 12 Presentation Asmara 2013) Presentation Asmara 2013) Arabian-Nubian Shield Significant Mines

SUDAN  Hassai VMS Deposit (Sudan Government 60% , Weather Investments II 40%) Arabian- Nubian Shield With Significant Modern Deposits  Commenced gold production in 1992, only modern Mine in operation in Sudan  2014 Indicated resource of 80.7mt at 1.27g/t Au (3.29moz gold) and 1.12% Cu (905,000 tonnes)  2014 Inferred resource of 36mt at 1.09g/t Au (1.29moz gold) and 1.11% Cu (403,200 tonnes)  Orca (Meyas Sand), Kosh, Managem, Delgo (Tahi), Orshab, and many others in gold production SAUDI ARABIA  Jabal Sayid VMS Deposit (Barrick Corporation 50%, Ma'aden 50%)  Only foreign controlled Mine under development in Saudi Arabia  Barricks share of 2016 Proven & Probable Reserve (627mlb copper) ERITREA  Bisha & Harena Gold rich VMS Deposit (Nevsun Resources 60%, Eritrean Government 40%)  31 Dec 2015 Reserve (607,666oz gold), (34.1moz silver), (552mlb copper), (2,582mlb zinc)  Commenced commercial gold production in February 2011 - on budget and on time  Commenced commercial copper production in Q4 2013 – under budget and on time  Zinc expansion commenced in mid 2016 and is expected to be - on time and under budget EGYPT  Sukari Gold Deposit (Centamin Egypt Ltd - 50:50 Profit Share with Egyptian Government)  Commenced commercial production in Q2 2010, only modern Mine in operation in Egypt  30 June 2015 Reserve (8.8moz gold)  30 June 2015 total Measured & Indicated resource (13moz gold) 13 Nubian Shield Mineralization

• VMS Deposits : Red Sea Region (Ariab and others), Esat , West Nub Mount (Abu Tulu), Nubia (Haissub). • Sedex (Abu Sammar). • Podiform Deposits • Epithermal Deposits: Many localities need to be revisited (Kushanteib Tohamium). • Cu Porphyry: Oheir and others. • Mesothermal & Orogenic Gold: Everywhere.

• Rare Metals: (Red Sea Region (J. Ayub, Nikrab…etc) 14 Why Sudan? | Unique Opportunity

Technical: The Republic of Sudan is one of the Africa’s largest countries after • Agro and Livestock Industries – enhancing • Highly prospective geology Congo and Algeria with estimated export value e.g. agro-processing • Clear Gold endowment 65% of the country having highly prospective geology for minerals • Oil & Gas • One of the last unexplored exploration • Extractive Industries (mining & processing) countries in Africa • Consultancy & Design Services

Local/Political: • Education – Training and Capacity Building

• One of the most stable • Power Generation governments in Africa • Financial Services • Strong legislative framework • IT services and e-commerce infrastructure • Government Support • Unique Opportunity - Market reintegrating • No Security Issues with the Global economy after 20 years • Easy to work An Open book geology 15

Map of Mineral Resources of the Republic of Sudan on geological basis in GIS format, made by Zarubezhgeologia The Republic of Sudan is one of the Africa’s largest countries after Congo and Algeria with estimated 65% of the country having highly prospective geology for minerals exploration

Sudan is Highly Prospective country with Significant Exploration Potential

Mining-Friendly jurisdiction with a Supportive Host Government

www.rosgeo.com 18 Red Sea Deep metalliferous Deposits

43-101 COMPLIANT RESOURCE ESTIMATE (ACA HOWE) •80 800 000 tonnes DSF • 1 642 630 tonnes Zn • 368 480 tonnes Cu • 3 350 tonnes Ag • 47 tonnes Au* • 5 368 tonnes Co* • 3 830 000 tonnes Mn* • 6 500 tonnes Cd* • 80 000 tonnes Pb* Average 8.5 metres of sediments *Non Compliant Resource Estimates Minimum Resource Excludes Basal Sediments & Vent Feeder Systems (high grade Cu etc.) Continuation of Major Pan-African Structures in the Nubian - Arabian Shield and the foreland region

- The extent and orientation of the Pan-African structures in Sudan need more investigations. Metallogenic province - The granitoid-greenstone terranes of the Nubian or mineral deposits and Shield are well-endowed with volcanogenic mining prospects in massive sulphide deposits (VMS), porphyry Cu, Sudan are aligned with vein gold deposits, and RM-REE. A good example the metallogenic is the VMS deposits of the Ariab Mining District. provinces that - Vein type gold deposits occur in old workings at associated with major many localities almost every where in the geodynamic events and Sudanese basement. tectonic sutures that - A Cu- Porphyry deposit has been recently characterize the discovered in Ohier. geology of Sudan. - The Pan-African shield is merging as a major province of Rare metals

Sudan Prospectivity 20 Drawing up the structural-tectonic scheme of the Republic of Sudan scale 1: 2,500,000 as vector graphics.

Nomenclature worksheets State of Sudan

Source maps : Maps of Sudan - according to the modern administrative division Map anomalies Δg (Bougué) Sudan scale 1: Republic of Sudan to the states. 2,500,000; Map of the regional component of the magnetic21 field of the Republic of Sudan. Map of the regional component of the gravitational field in the Republic of the Sudan

Map of indirect signs of faults Zonal map of the gravitational field Gravitational field zoning scheme in the Republic of the Sudan of the Republic of the Sudan on the for the Republic of the Sudan on (by geological and geophysical map of residual anomalies after the the map of regional magnetic field data) gravitational field recalculation up to 20 km. 22 Structural and tectonic scheme of the Republic of the Sudan (by geological and geophysical data

www.rosgeo.com 23 geological-structural geological map at a scale of 1: 1 000 000 on a formational basis as vector graphics.

www.rosgeo.com Geological map of the Republic of the Sudan ZARUBEZHGEOLOGIA 24 Distribution of Archean and Paleo-Mesoproterozoic Basement Complexes

www.rosgeo.com 25 Distribution of Late assemblages (Pan-African events)

www.rosgeo.com 26 Distribution of Phanerozoic assemblages ( & events)

www.rosgeo.com 27 Distribution of assemblages (sedimentary, igneous and subvolcanic)

www.rosgeo.com 28 Phosphate

Sudan has great

Pb

Cu 29 Seria Mineral Number of Number Of l No. Licenses Company

1 Gold 49 36 2 Chromite 117 46 3 Gypsum 30 21 4 Salt 37 34 5 Iron 8 6 6 Marble 26 7 7 Manganese 14 6 8 11 6 9 Copper 2 2 10 Talc 2 2 11 Feldspar 6 3 12 Quartz 5 4 13 White Sand 4 2

14 Kaolin 1 1 15 Bentonite 1 1 16 Fluorite 2 1 30 Sudan’s Potential for Industrial Mineral Sudan is well endowed with a wide range of IMs including: Bauxite clay Garnet White Silica diatomite Barite perlite Quartz Pumice Zeolite Dolomite Graphite Vermiculite Magnesite Asbestos limestone Trona gypsum dimension stones Kaolin Nitrates Pozzolana Talc Potash Bentonite Titanium minerals Salt Black Silica Phosphate Mica

Pozzolana White Sand Map of Industrial Mineral in Sudan Sudan has a long history and a big heritage of Mining culture which go back to three thousand years when Nubians extracted gold and base metals and smelted iron to make water wells.

33 Sudan Position as Next Major Mining Destination

SUDAN GOLD PRODUCTION (IN KG)

120,000 107,273

100,000 94,115 82,000 80,000 70,000 73,400

60,000 40,000

production/k.g 38,000 40,000 34,000

20,000

0 2010 2011 2012 2013 2014 2015 2016 2017 34 500 GLOBAL GOLD PRODUCTION IN TONS - 2017

450

400

350 TON

300 S 250 U 455 D 200 A N 150 270 250

100 209 170 150 140 125 50 107 100 100 90 80

0 35 China Astralia Russia USA Canada Peru South Africa Mexico Sudan Uzbekistan Indonesia Ghana Brazil 4.9

9

36 Sudan Pro-Mining Investment Framework:  Attractive Mining Code and Investment Framework  Exploration License 2+1+1 years term / renewable  Mining Licenses 25 – years term and renewable  Investors recover all capitalized exploration and development expenses  The agreement covers both the exploration and exploitation periods  Custom free importation of all mining equipment + VAT retention  Majority equity ownership It covers Sustainable Development  Right to transfer ownership aspects - EIA Assessment with  Foreign exchanges Health and Safety  No withholding taxis management plan  Access to the available data - Social or Community Responsibilities  Commercial terms negotiable The Government is entitled to: - 5 to 7% royalty rates - 15-35% free carry shares - 15% business profit tax, relatively low corporate tax rates. - Prospecting and/or mining tenement rent fees >401

79

143

179

38 39 Investment Opportunities in Mineral Development

 Investment is open for all mineral commodities, mineral industries and others . Mining Services cover: 1- Equity Financing 2- Concession Holding 3- Mineral exploration and mineral resources evaluation, 4- Mining development. 5- New techniques in extractive industry 6- Feasibility studies, 7- Equipment's providing.

40

40 Web site: www.gras-sd.com Email: [email protected] Fax: 249 11 776681 Great Gate has opened for Direct Investment opportunities and great hope for new discoveries and development in SUDAN

Capital

Technical Resources

41 Finally you are warmly Welcome To visit Sudan and share our welth

الثالثة

26-27-28

Web site: www.gras-sd.com Email: [email protected] Fax: 249 11 776681 www.sudansummit,com 43