Toronto Stock Exchange-listed, diversified natural resources group Vangold Resources has bought a 90% interest in seven rare metal mines in Uganda. The acquisition was facilitated through Vangold’s subsidiary, a British Columbia private company, Horn Rare Metals.
Vangold has a portfolio of 29 diverse advanced stage projects, including revenue generating oil and gas projects and a gold project in Papua New Guinea.
In Uganda, in addition to its new rare metal mines, Vangold has licenses covering over 60 km2 in the prospective Kilembe copper/cobalt belt, licenses covering over 300 km2 in the Kilo Moto region – the west Nile region of Uganda – and licenses covering over 287 km2 in the Kafunzo area. The Ugandan government is currently spending US$42 million of airborne geophysics in the area of Vangold’s licenses.
Some of Vangold’s Kilembe licenses are located in the former Kilembe Mine concession area previously owned by Falconbridge and which was mined between 1956 and 1977. That mine produced over 16 million tonnes of ore grading 1.98% copper and 0.17% cobalt. Falconbridge explored the named prospects from 1959-1972 to identify additional ore bodies to increase the life of the mine. Each of the prospects has mention of copper mineralisation in a similar geological environment to that of the Kilembe Mine.
The history of the mine indicates that these areas would have been explored and possibly developed as required to replace reserves as the Kilembe Mine matured. This was never undertaken because of political turmoil in 1972 that forced closure of the mine before additional reserves were necessary.