Thor Exploration’s Segilola Gold Project – A historic milestone for Nigerian mining
Minister O. Abegbite and Segun Lawson, Chief Executive Officer, Thor Explorations, Canada at the stone laying ceremony on the construction site of Segilola Gold mine project, Osun state.
In recent years the mining industry in Nigeria has been recognized as an attractive investment destination. The country has traditionally had the oil and gas industries driving its economy, but mining companies are beginning to make sure the industry is on the economic roadmap for years ahead.
An example of this is indicated by trailblazer Thor Explorations’ flagship Segilola Gold Project located 120 km northeast of Lagos. The project is a proposed open-pit project based on an indicated mineral resource defined by a comprehensive drilling program over 16,000 m of reverse circulation and diamond drilling to define a high-grade resource and probable reserve that indicate:
- Probable Reserves of 3,345,000t @ 4.2g/t for 448,000 oz
- Indicated Resources of 4,037,000t @ 4.3g/t for 556,000 oz
- Inferred Resources of 2,030,000 @ 4.7g/t for 305,000 oz
Thor Explorations, a listed company of the Toronto Stock Exchange, has received a commitment from Norinco International Cooperation for financing a section of the lump-sum turnkey engineering, procurement and construction contract value awarded to Norinco International for the development of the project. This follows the announcement of Investment Committee approval for US$78 million of funding from the Africa Finance Corporation. Through support from Norinco International, the Africa Finance Corporation and several other avenues, funding for the project now totals US$84.5 million.
Thor Explorations’ Segilola Gold Project has the potential to produce 80,000 oz of gold per annum. The company aims to have the project operational in early 2021 and employ more than 1,000 Nigerians.
The progress of this project, particularly from an investment view, will undoubtedly draw the attention of other large mining houses looking to expand their footprint in Africa. One of the significant reasons for this will be that most of the gold-producing countries are saturated with sector business. A stone laying ceremony for the project was held on 19 March 2020 with Nigeria’s Minister of Mines and Steel Development, Olamilekan Adegbite and the Secretary to the Osun state government, Oluwole Oyebamiji representing the governor of Osun state, Gboyega Oyetola.
Minister Olamilekan Adegbite will be the official host for Nigeria Mining Week 2020.
The topics of exploration, investment and development of Nigeria’s mining industry will be discussed in-depth at this year’s Nigeria Mining week. In fact, it is notable that Segun Lawson, CEO of Thor Exploration was a speaker at last year’s event.
Nigeria aims to increase mining’s contribution to GDP to 3% by 2025. The government is creating a geological cadastre to provide easy access to prospective investors on potential areas to target for exploration. It has also put in place incentives, including a tax holiday of as long as five years for projects entering production and the removal of import duties on mining equipment.