Section 3

Section 3: Validating the Mining Resources for Fort Dauphin Madagascar.

 The research into the mining resources for Madagascar took us to three sites, in which, each gave a good perspective into the resources and mining operations in Madagascar. The first article dated 2/8/2013 published by the Times for largest mining operation in Madagascar and the article was regarding an unrest that happened during that time. The British-Australian company $940 million Rio Tinto mining operation scaled back its operation afterwards but declined to comment when the Times asked. North of Rio Tinto’s St. Luce site is a Chinese-owned Ilmenite mining concession that seemed to fast tracked through the Government red tape and social impact assessment process that would normally take it six years during that time according to the article keep that in mind. The article also indicates Madagascar has hydrocarbon, gold and half of the world’s sapphires. The next article dated 10/4/2015 published by Gold Investing News indicates that “Madagascar is an up and coming mining country, considered one of the best gold exploration targets in Africa.” But the mining and exploration is underdeveloped due to its political history. Madagascar’s primary gold deposits are of mesothermal “lode” quartz-hosted type. The gold is of this type is extremely valuable accounting for nearly 20 percent of the worlds gold deposits. The article indicates that Madagascar gold classifications are of two types primary and secondary. Primary are found in Precambrian metamorphic terrains as veins of gold-bearing quartz, or finely disseminated in the various facies of the crystalline schists while secondary are found in eluvial deposits, where the secondary material has been transported along slopes. Eluvial processes can form locally valuable deposits, despite a low-grade origin. Old alluvial deposits are found where the gold-bearing sediment is consolidated and are common along valley floors and terraces of Madagascar. Presently these deposits can be found in the gravels and sediments of present-day river beds which amount to 80 percent of Madagascar’s historical gold production. The article also indicates two mining companies Zamarat Mining a European-based exploration company that focused on development and early-stage production of precious metals and diamonds in Madagascar and Malagasy Minerals Limited (MML). The European-based Zamarat Mining seemed to have taken a number of permits for gold exploration in the large gold-rich areas in the South-West, and they seemed to started exploration in those areas with their first production back in the first half of 2011. Malagasy Minerals Limited is an Australia-based company. MML engages in mineral exploration and project evaluations. Their operation is in the lower south-central of Madagascar with projects as Ampanihy, Vohibory, and Fotadrevo projects with the Vohibory project the only one that contains some gold deposits. The final article published by The Guardian dated 11/15/2016 indicates that since the elections in 2013 the uncertainty has not lifted according to the Executive Secretary of the Madagascar Chamber of Mines which we would say they are referring to the unrest from the first article but in mid 2000 Madagascar has given the green light to two large scale mining projects Ambatovy a $8 billion nickel and cobalt project development by a consortium led by Sherritt International, and QMM, a $1 billion limonite project development by Rio Tinto. They also indicate that in 2016 Madagascar first started to export gold by Anor a national gold agency that was setup in 2015 with the hopes of exporting 500kg of gold, yet in 2011 United Arab Emirates (UAE) reported importing $250 million worth of gold and gemstones from Madagascar.

 Now that we have a good perspective in Madagascar’s resources and operations we did a search on what companies seems to be the major companies in Madagascar and found site www.FindaForestryJob.com which list 5 companies which 2 of the 5 we already know about but the others look knew which are Varun Group Madagascar, Pan African Mining Corp (PAM) and Cline Mining Corp. PAM is the only one exploring gold with other commodities. We now have to locate the mine in Fort Dauphin to get a good idea of where it’s at. According to our Original downloaded copy Valuation Report, the direct quote in Section 8.5 of the document states “the Madagascar deposit is located in the rural commune of Tranomaro where the mining permits of type PE n 15745 and n 39756 are spread over an area of 75 km² of Tsaravintana Mining Go. is located in the southeaster par of Madagascar, more precisely in Anosy Region, Disctricts of Ambosasary Atsimo, in the Rural Commune of Tranomaro.” But it’s interesting that the white paper leaves out Tsaravintana mining but is in our Original downloaded copy it’s there as shown in figure 61. Now we understand how Investreport made that link. After a search, we found www.Mindat.org and did a search of the area with their map viewer to check out the mine’s location based on the information we know as of date. And after looking at the location of Fort Dauphin mine via satellite view, I would have to say it does not look like what I expected to see as shown in figures 58-60. Remember this is the place that Karatbars stated that it had all that gold that was based on the Valuation and Audit report that we know as being a fraud from the very beginning. Also found www.miningdataonline.com after a quick search for projects, active mines in Madagascar, the results on the website resulted with only three and none showed under Commodity Precious Metals section as having gold. The other sites like the Madagascar Chamber of Mines only listed three projects Rio Tinto site, Ambatovy’s site and Kraoma’s site. Two other search results with African Mines Online and Global Companies sites showed one hit for each one QMM and Ratsimba. The only one with a gold mining with exploitation permit was Ratsimba. The last three sites gives you a look into all the Mining companies in Africa and according to www.miningafrica.net Madagascar is not even listed with any leading mining companies on their site and last we reviewed a document from the USGS 2015 Minerals Yearbook Madagascar titled The Mineral Industry of Madagascar and after reviewing it the only mention in gold mining was in section titled Structure of the Mineral Industry which validates what the other articles regarding the gold deposits are in Madagascar mainly artisanal miners producing gemstones, gold, mica, and salt as shown in figure 62. And the last part of this document shows Table 1 MADAGASCAR: PRODUCTION OF MINERAL COMMODITIES section which list gold output along with Nickel for the years of 2011 and 2013 combine as being 158 kilo grams there is no data for the years 2013 – 2015 as shown in figure 63. Also keep in mind of notes 2, 4 and 5 of the document as shown in figure 64. And in a more updated article in 2017 with www.Xinhuanet.com states that Madagascar recorded 900 kilograms of gold January to April and issued 45k professional cards for gold planners and states the government recorded only 150 kg of official gold exports but the United Nations Conference on Trade and Development (UNCTAD) reported 600kg worth had been exported illegally from Madagascar in the same period.

Figures 58-60: The screenshots below are from the Fort Dauphin Mine in Madagascar.

Figure 59

Figure 60

Figure 61: The screenshot below is the comparison of the White paper and the Valuation report.

Figures 62-64: The screenshots below are from the USGS document regarding Madagascar.

Figure 63

Figure 64

  1. http://world.time.com/2013/02/08/the-white-stuff-mining-giant-rio-tinto-unearths-unrest-in-madagascar/
  2. https://investingnews.com/daily/resource-investing/precious-metals-investing/gold-investing/gold-mining-in-madagascar/
  3. https://www.theguardian.com/sustainable-business/2016/nov/15/gold-rush-madagascars-artisanal-miners-could-benefit-from-global-downturn
  4. https://www.findaforestryjob.com/resources/directory/madagascar/71
  5. https://www.mindat.org/loc-158124.html
  6. https://www.google.com/maps/place/Madagascar/@-25.0302662,46.9656428,238m/data=!3m1!1e3!4m5!3m4!1s0x21d1a4e3ea238545:0x5244e3c1977b1388!8m2!3d-18.766947!4d46.869107
  7. https://miningdataonline.com/property/list.aspx?cat=0&lids=1072&ssids=1,2&fm=0&yr=18&vw=1
  8. https://www.mining.co.za/index.php?nav=search&keyword=fort+dauphin
  9. http://miasa.org.za/members/madagascar-chamber-of-mines
  10. https://www.companiess.com/madagascar_gold_mining_product.html
  11. https://www.companiess.com/ratsimba_info1136545.html
  12. https://www.africanadvice.com/Mining_Companies_Corporations/Madagascar/
  13. https://www.miningafrica.net/mining-companies-africa/
  14. https://prd-wret.s3-us-west-2.amazonaws.com/assets/palladium/production/atoms/files/myb3-2015-ma.pdf
  15. http://www.xinhuanet.com//english/2017-05/27/c_136318569.htm

 During this extensive research regarding Section 3, we have done intensive background search on the type of resources that Madagascar offers for the mining establishments. We validated that there is an $8 billion nickel and cobalt project a $1 billion limenite project. In 2016 Madagascar first started to export gold by an agency that was setup in 2015 and possible exporting 500kg of gold and 2011 United Arab Emirates (UAE) reported importing $250 million worth of gold and gemstones from Madagascar but according to a USGS document their table list the gold production as being 157 kilograms as of 2012.

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