Despite the COVID-19 pandemic, Thor Explorations, which is listed on the Toronto Stock Exchange, continues to make steady progress in its Segilola gold allocation in Nigeria and is ready to pay for the first gold in the 2021 quarter.
However, as SEGUN LAWSON, CEO, points out, Segilola is more than the company’s flagship project; it is Nigeria’s first large-scale gold mine to lay the groundwork for attracting more mining investment to the country. GERARD PETER Reports.
Lawson has led Thor Explorations since its inception in 2011 and has led all of the corporation’s acquisitions and financing. In August 2016, the corporation completed the acquisition of a 100 percent stake in the Segilola gold allocation in Osun state, about 120 km away. northeast of the capital, Lagos.
The gold allocation includes a indicated resource of 556,000 oz . . . at 4. 2 g/t, an alleged appeal of 306,000 oz . . . at 4. 7 g/ty a probable reserve of 448,000 oz . . . at 4. 2 g/tA 25- annual mining permit issued in September 2016 and environmental approvals are already in effect.
Under Lawson’s leadership, the gold allocation went from the exploration phase to the structure phase that began in February of this year. In August, Thor Explorations announced that the structure was progressing as planned and within budget, despite COVID-19 closing restrictions. He has been able to achieve all this by committing the physical condition and protection of his equipment, without reporting any injuries detained to date.
“We have made progress in key areas of construction,” Lawson begins. “We have finished the installation of the water garage and, of course, it will be filled to its maximum height for the next 4 months. We also built the camp and administrative areas, adding all the we are also working on the processing plant and in July we poured the first concrete.
Off-site, the other key detail is that 60% of purchases of delayed items have been completed for a long time. “The first shipment of parts has already arrived at Lagos port and we expect delivery in the fourth quarter of this year, with SAG and ball generators delivered in January 2021,” Lawson adds.
Part of the explanation for why Thor Explorations was able to continue its steady progress is that the company was able to ensure that it had staff on site prior to the start of the COVID-19 closure in Nigeria. the site in February and has been able to isolate the site ever since.
“This means that all key staff are housed on site and that the workforce has been recruited and housed in neighboring villages in the immediate vicinity of the site. We have also limited out-of-area monitoring and mitigation measures for COVID -19 are underway on site.
Segilola’s EPC entrepreneur is Norinco International, in China and, according to Lawson, this benefited the allocation because the Chinese are one step ahead of the rest of the global in terms of managing the coronavirus pandemic.
“The team brought their COVID-19 manual and implemented measures such as handling, temperature testing, social distance and access control. Which is also very vital for using signage around the site and surrounding villages to raise awareness of the virus and how it spreads and, fortunately, to date, we have not had cases of COVID-19 in Segilola.
Communities are stakeholders
Lawson explains that network engagement is a key pillar of the company’s vision.
“As a giant assignment in a remote area, we have a duty to care for and the network is one of our stakeholders. Not only do we provide them with jobs, but we have a duty to make them aware of COVID-19. »
To this end, the company organized workshops and placed posters in nearby villages. Thor Explorations also donated to a state lab to supply kits to local villages.
In addition, the company has much-needed local jobs. More than 360 jobs have already been created, 92% of whom are Nigerian citizens and approximately 56% of local communities.
However, Segilola’s progression extends beyond Osun’s borders, a historic allocation that demonstrates that allocations of this magnitude can be effectively implemented and constructed in Nigeria.
Lawson adds that the implementation of the allocation will increase investor confidence in the country and attract more exploration dollars to Nigeria.
“Moreover, given the extent of Nigeria, it is to think that there is no large-scale mining in the country. This shows that much of Nigeria’s geological heritage is under-explored. “
“Segilola will show foreign investors that projects like this can evolve effectively in Nigeria. This will result in job creation, skills and a source of income for the country. “
Building the foundations of success
There is no doubt that Nigeria does not rank first on the list of African countries brimming with mining potential, largely because it has depended on the exploitation of its oil reserves.
And that’s why it was difficult for Thor Explorations to secure an investment for Segilola.
“Investors don’t know the country and geology of the country, so from the beginning it was going to be a big demand.
“We had to think outdoors for the allocation to be funded. We ended up getting about $104 million from sources, adding up our spouse’s investment EPC, and worked with the African Finance Corporation to save $86 million.
“The organization is 40% owned by the Central Bank of Nigeria, so it was willing to worry about the transfer and we reached this agreement, Segilola has much more horny with the foreign mining investment community.
Lawson is that Segilola will lay the groundwork to unleash Nigeria’s mining potential.
“You don’t need to go far to locate case studies on how mining can gain advantages in a country. If you look at Burkina Faso, you only have to go back 20 years to see how the creation of the first mine led to progression. 15 mines in immediate succession. I think Segilola will be the first, but it will open the door to further mining progressions in Nigeria,” he concludes.