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MINISTRY OF INDUSTRY, MINES TECHNOLOGICAL
DEVELOPMENT
CAMEROON A NEW MINING DESTINATION IN AFRICA
By Hon. SECRETARY OF STATE FUH. Calistus
Gentry, PhD PDAC Toronto 09 March 2010
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Location
The REPUBLIC of CAMEROON lies midway between West
and Central Africa. It stretches from the Gulf of
Guinea in the South-West to Lake Chad in the
North and lies approximately between 11 of
(attitudes (01 80f - 13 00f N) and 08
longitude (08 251 - Yaounde, 2008 2 1620f E).
It is bounded to the South-West and West by
the Gulf of Guinea (the Atlantic Ocean) and the
Federal Republic of Nigeria respectively North
by Lake Chad North-East and East by the
Republics of Chad and Central Africa
respectively South by the Republics of Congo,
Gabon and Equatorial Guinea.
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Infrastructure

• Hydroelectric dams of Edea, Song-Loulou, Lagdo
  for a total of 1200 MW
• Nyassa in Douala thermic central of gas has been
  launched for energy capacity enhancing
• Construction of Lom-Panger and Memvele
  hydroelectric dams starts 2008
• Construction of a thermic central of gas at
  Kribi ( 150 MW)
• 5000 km of asphalted roads, 45000 km of
  maintained laterite roads
• Three International ( Douala, Yaounde-Nsimalen
  Garoua), and three national airports for home
  flights

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Infrastructure (ctd)

• Railway linking Douala Yaounde Ngaoundere
  western railway (1009 km)
• Deep sea port at Kribi geotechnical
  topographical studies have started in january
  2010
• Limbe deep sea port preliminary studies have
  started.

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Simple approach to mineral title
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Licence overview
Permit Quarry Reconnaissance Exploration Exploitation
Purpose Open pit various materials Geological and geophysical surface work All types of work for the definition of mineral deposits Mine development including facilities
Property As necessary According to administrative boundaries Polygon, no limitation in depth Rectangle as per exploitation permit
Area Defined act of allocation 10,0000km2 1,000km2 1,000km2
Validity 5 years, renewable indefinitely for periods of 3 years years, Fee per m2 1 year, Renewable Flat fee 3 years Renewable Fee per km2 25 years renewable for 10 years until exhaustion of resources
Delivery by Hon. Min. of Mines Hon. Min. of Mines Hon. Min. of Mines HE. President Rep.
Notes Exclusive rights, must have a sizeable deposit, environmental impact Gives priority for exploration permit Exclusive rights, gives priority for exploitation permit Exclusive rights, must have proven deposit, environmental impact study with a mining convention
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Duration for processing applications

• Applications for grant of exploration permit or
  mining title shall be processed within the
  following time-frames research permit within 30
  (thirty) days of registration of the application
  exploration permit within 45 (forty-five) days
  of registration of the application mining
  permit within 90 (ninety) days of registration
  of the application.
• Where the application for mining title is not
  processed within the time-frame prescribed above,
  the title shall be considered as granted, unless
  the service in charge of mines duly informs the
  applicant, of the extension of the time-limit for
  examining the application. Such time-limit may
  not be longer than the initial time-frame.
• Where an application for renewal of a mining
  title is not processed before the expiry date,
  such title shall continue to be in force for the
  land for which the renewal is requested until
  notification of the renewal or rejection.

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GEOLOGY
Cameroon's geological history begins with the
Archaean era between 3.5 and 2.5 billion years
(Ga) ago. Its different phases of development are
illustrated by geological masses formed during
successive orogenic cycles characterized by the
formation of mountain ranges, and subsequent
extension phases by the splitting of the
continental crust.
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GEOLOGY (ctd)
Cameroon is generally acknowledged to have
experienced three orogenic cycles 1.   The
Liberian cycle, exemplified by the Ntem complex,
which dates from the Archaean era, and is about
2.5 billion years old 2. The Eburnean or
Transamazonian cycle, with the Nyong and Ayna,
formations, which date from the Palaeoproterozoic
period (2.5-1.8 billion years ago) 3.  The
Pan-African cycle, which comprises formations
from the Neoproterozoic era 1,000-600 million
years (Ma) ago.
Mintom Limestone
Kitongo granitic Scarp (Poli)
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GEOLOGY (continued)

• The extension phases consist of
• The Lower Palaeozoic period, during which
  Mangbaii-type series were deposited, around 580
  million years ago
• The Cretaceous era, is exemplified by the Benue
  trough and its coastal and continental
  counterparts, which were formed around 110
  million years ago
• The Tertiary era, when the plutonic and volcanic
  complexes of the Cameroon Line were formed, about
  70 million years ago.
• The Quaternary period is exemplified chiefly by
  continental erosion and recent alluvial deposits,
  particularly on floodplains and in subsidence
  zones.

Syenites outcrop (Lolodorf)
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Geological ensembles Craton of Congo

• The geology of Cameroon is divided into five
  geotectonic units (J. Vicat el al, 1998).
• The Craton situated at the extreme south part of
  the country, it is called the Ntem formations
  and comprises charnockites, leptynites, gneiss
  granodiorites, all cut by greenstones dykes.
  These formations are estimated to be dated
  between 2.8 and 3.6 Ga (Archean age) and are
  composed of Nyong, Ntem and Ayina series (from
  the W to the E) in which green stones belts have
  been identify
• Craton cover (proterozoic ) is located in the
  southeast Cameroon on the border of CAR and Congo
  Republic. Its discordant with the Mbalam belt
  and covered partially in the north by the
  yaounde nappe. This Craton Cover include the
  upper carbonated), Dja series (650-540 My)

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Geological ensembles (ctd) Congo Craton cover
Panafrican

• The Bélé-Libongo tillite complex, (850-650
• My) the Boulou and Mouloundou
• sandstones, arkoses, conglomerates and
• shale series of the lower Dja , and the
• Lobeke numerous dolerites dykes and sills
• occur with pillow lava and occasional
• syenite plutons
• the Panafrican Chain is covering the
• greater part of the territory and its
• formations have been put in place during
• the orogeny of the whole continent of Africa.

Mobilong conglomerates
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Geological ensembles (ctd) Panafrican Chain

• Its characterized by a strenching belt directed
  E-W from Sudan to Gulf of guinea and which
  extends into Brazil
• territory. This chain (including two entities)
  the christallophyllian and migmatitic formations
  formations of paraderived origin, and granitoïds
  which are either anatexic or syn and post -
  tectonic and most of them are calco-alkili),
  which belongs to the Oubanguides one, is cut
  by destral mylonitic shear zones trending NE-SW
  the Sanaga Fault (SF) and the CCSZ (Central
  Cameroon Shear Zone).

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Geological ensembles (ctd) Sedimentary basins

• The Paleozoic and the Cretaceous are the two
  types identified in Cameroon
• (1) Paleozoic (northern part) is azoic
  volcanic-detrital deposits ( Hoye near Poli)
  Mangbei (Chadian border) dated
  Devonian-Ordovician (370-490 My by K/AR)
  overlying the Panafrican
• (2) Cretaceous
• fluvio-lacustrine deposits with Aptian,
  cenomanian and Turonian sandstone (Mamfé Benoué
  areas)
• Coastal basins (Rio del Rey, Douala
  Kribi-Campo, Bakasi area) with deposits dated
  Eocene Miocene contain oil gas.

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Geology Mineral potential

• This geology is favorable to the mineralization
  of substances as precious metals (gold, diamonds)
  base metal, rare metals etc, and hydrocarbons. So
  that we can have for example in
• Congo Craton - Archaean Greenstone belts (South)
  iron ore (Mbalam, Kribi), uranium (Lolodorf),
  Diamond (Mobilong)
• Central Cameroun shear - Poli series (North)
  uranium, saphire, gold,
• Sanaga shear zone - Lom series (East) gold
• Pan African Mobile Belt (Placer gold)
• Sedimentary basins oil gaz (Douala, Campo,
  Kribi) salt, sapphire (Mamfé).

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SUMARY OF THE EXPLORATION ISSUES

• From 1960 to1990, some of these indices
  discovered trough the exploration carried out
  since the beginning of the last century, were
  investigated with the bilateral cooperation
  agreements between Cameroon and international
  bodies like BRGM, UNDP, BGR and others. This
  resulted in the iron in Mbalam Kribi, bauxite
  in Ngaoundal and Minim Martap and Fongo Tongo,
  Nickel-Cobalt in Lomie, titanium in Akonolinga,
  Tin in Mayo Darle, Uranium in Poli Lolodorf,
  Gold in the East region, Diamond in the south
  east region. These projects form the current axis
  of the mineral exploration exploitation
  activities in Cameroon.
• Actually
• 87 research permits have been granted to some
  companies
• one mining permit in Ni-Co and 3 for limestone
  and marble have been issued.
• The present review has focused its attention to
  some basic metal and precious substances
  projects which are going on in Cameroon territory.

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Some major projects under development

• Due to this favourable environment for
  mineralization some principal project are under
  developpment and intensive exploration. They are
• Ni-Co in Lomié area exploitation permit
  (GEOCAM)
• Bauxite in Minim-Martap and Ngaoundal,
  tworesearch permits (Cameroon Alumina Ltd,
  derived from Hindalco-Dubal-Hydromine Inc
• Iron ore in Mbalam (CAM IRON SA/SUNDANCE
  RESOURCES Ltd)
• Iron in Kribi (SINOSTEELCAM)
• Diamond in Yokadouma ( CK Mining)
• Gold in Batouri (African Aura Resources)
  Uranium in Poli and Lolodorf, Gouna ,Salaki, and
  Voko.(Mega Uranium Cameroon).

DIAMOND GOLD NUGET ROUGH
SAPPHIRE WASHED Ni- Co SAMP.
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Ni-Co in Nkamouna achievements

• (1) October 16, 2009 Increase in resources at
  the Nkamouna Cobalt Project
• Measured and indicated resources increased 97
  to 120.6million tonnes .
• Inferred resources increased 25 to
• 202.5 million tonnes.
• (2) December 9, 2009 Lycopodium appointed to
  update feasibility
• studies deliverable date Q2 2010.
• (3) December 16, 2009 Standard Chartered Bank
  engaged by Geovic Mining Corp as financial
  advisor to the Nkamouna Cobalt Project.

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Ni-Co (ctd) Resources reserves

• Mine Permit 1,250 km2
• Nkamouna Proven Probable Reserves
• 54 million tonnes 0.25 cobalt, 0.69
• nickel and 1.33 manganese within a
• mineralized area of 13 km2
• Physical Concentration of this ore
  yields 12 million tonnes with upgrades to
  O.72 Co, 0.90 Ni and 3.71 Mn
• Mada Inferred Resources
• 145 million tonnes 0.21 Co, 0.48 Ni
• and 1.15 Mn within a mineralized
• area of 60 km2
• Five other deposits contain 264 km2
• of mineralized area

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Ni-Co Updated resources reserves

• Measured and Indicated resources increased 97
  to 120.6 million tonnes, grading 0.23 cobalt,
  0.65 nickel, and 1.34 manganese.
• Inferred resources increased 25 to 202.5
  million tonnes, grading 0.20 cobalt, 0.59
  nickel, and 1.20 manganese.
• The January 2008 estimate of Nkamouna's
  Proven and Probable reserves, at 54.7 million
  tonnes grading 0.25 cobalt, 0.69 nickel, and
  1.33 manganese, was projected to support a
  19-year mine life. The approximate doubling in
  Measured and Indicated resources suggests the
  potential to double this period.

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• Ni-Co (ctd) Some favorable caracteristics

• Cameroon cobalt mineralization is higher
  grade and coarser size than all other known
  laterite deposits
• Cobalt is upgraded nearly three-fold using
  low-cost washing and sizing similar to
  simple sand and gravel operations
• Shallow open pits only 16 meters deep
  enable low mining costs, concurrent backfill
  and reclamation blasting not needed
• Recent test work indicates opportunity
• to utilize simpler leach chemistry
• and processing equipment

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Iron ore of Mbalam Resources reserves
Deposit Resource category Tonnage (Mt) Grade () Grade () Grade () Grade () Grade ()
Deposit Resource category Tonnage (Mt) Fe SiO2 Al2O3 P LOI
Mbarga Indicated 168.7 60.5 9.5 2.1 0.08 1.4
Mbarga Inferred 10.4 57.5 13.0 2.7 0.06 1.6
Mbarga south Inferred 21.8 58.8 9.4 3.0 0.06 2.9
Metzimevin Inferred 14.2 61.8 10.3 3.6 0.09 1.8
Total-indicated inferred resource Total-indicated inferred resource 215.1 60.2 9.8 2.3 0.08 1.6
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Iron ore of Mbalam (ctd) Resources reserves
Deposit Resource category Tonnage (Mt) Grade () Grade () Grade () Grade () Grade ()
Deposit Resource category Tonnage (Mt) Fe SiO2 Al2O3 P LOI
Mbarga Indicated 168.7 60.5 9.5 2.1 0.08 1.4
Mbarga Inferred 10.4 57.5 13.0 2.7 0.06 1.6
Total-indicated inferred resource Total-indicated inferred resource 215.1 60.2 9.8 2.3 0.08 1.6
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Mbalam Iron Ore Recents achievements

• The indicated resource of itabirite hematite is
  sufficient to provide beneficiation feed required
  for the proposed production of high quality
  Direct Reduction grade and blast furnace grade
  iron concentrate during the first 20 years of
  project operation.
• To enhance the high grade hematite, another RP
  (N143) has been granted to CAM IRON SA/
  SUNDANCES RESOURCES Ltd for further exploration
  activities.

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Mbalam Iron Ore Recent achievements (ctd)

• 20,000 metres budgeted in 2009/10
• 3 new drill rigs purchased
• Transport and port scope
• defined site investigations commenced
• Framework Agreement signed with Government
• Feasibility Study under review for Mining
  convention negotiations
• Environmental and Social Assessment report under
  Government review
• Full funded Definitive Feasibility Study to be
  completed in 2010 -90m capital raising
• Deutsche Bank appointed as strategic partners and
  arrange project financing.

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Yokadouma Diamond Resources Reserves
The conglomerates are the source rocks
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Yokadouma Diamond Resources Reserves (ctd)
ZONES DIMENSIONS OF THE CONGLOMERATE OUTCROPS (m²). TOTAL SURFACE AREA OF THE BLOCKS CONCERN (m²).
MOBILONG gt/150.000 gt/11.934
LIMOKOALI/MOMIKOGUI and MOMETCHOBI gt/483.249 gt/10. 62
TOTOBI gt/1.75 gt/9. 888
NONPEDA/MPMALOUDOU and LINGUI gt/3. 564 gt/13. 469
TOTAL SURFACE AREA gt/9. 296 gt/ 45. 911
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Yokadouma Diamond(ctd) Open pit mining

• Open pit mines are used when deposits of minerals
  are found near the surface or along kimberlite
  pipes. This method is used when the "overburden,"
  or surface material covering the deposit, is
  relatively thin and/or the minerals are imbedded
  in structurally unstable earth.
• In open cut mining, the ore shall be removed from
  deposits that crop out at the surface, lie on a
  hillside, or are covered by a shallow overburden
  that is stripped before or simultaneously with
  the removal of the ore.

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Yokadouma Diamond (ctd)Environmental issues

• The first step in developing exploitation is the
  removal of vegetative cover of trees and
  underbrush. Next, the overburden of topsoil and
  subsoil is removed and stockpiled for future
  reclamation. The ore is exploited in the
  preferred method to be applied.
• Considering the fact that the zone is located in
  a tropical dense forest area, a detail
  environmental study is planed to be carried out
  in the different target zones which include,
  Mobilong, Limokoali/Momikogui, Momitchobi, Totobi
  and Nonpeda areas. This shall be done following a
  well defined reference terms based on
  socio-economic, flora and fauna that is found in
  this zone.

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Bauxite Resources Resrves
Exploration campaign was conducted between
January 16th and May 25th 2009. 11 plateaus on
Minim-Martap and 3 plateaus on Ngaoundal were
drilled, and 11,358 samples were collected,
prepared, and analyzed. Estimated Bauxite
resources are around 550 Mt with potential for
additional 100-200 Mt in the southern region of
Minim-Martap deposit.
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Bauxite(ctd) Environmental Issues

• Total population in the project area is around
  45,000, but none of them is living on the
  potential mining pits.
• The base line study covered the Exploration
  Permits area and a buffer zone of 10 km around
  their perimeters. It basically showed that the
  area is fully suitable for implementing mining
  operations, with no endangered or protected flora
  and fauna specie, nor any migratory path within.
  Air, water, and noise monitoring followed the
  same pattern.

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Bauxite (ctd) Alumina refinery
Alumina refinery, planned to be established near
the bauxite deposits, will have the capacity of 3
Mtpa of smelter grade alumina (SGA). It will be
built in two phases. Proven and robust
technologies have been chosen in the process
design, which is based on a typical low
temperature digestion, given the gibbsitic nature
of the bauxite. Process and operating parameters
will be in the first quartile of the industry.
The plant will be operated to adhere to the best
safety, environment, and efficiency standards in
the industry.
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Bauxite(ctd) Recents achievements

• The port facilities Government of Cameroon
  intends to develop at Lolabe, about 860
  kilometers by rail from the preferred refinery
  site.
• The total yearly cargo to be transported by rail
  will amount 6.4 Mtpa, when the refinery is fully
  developed.
• The existing railway line between Macor and
  Makondo has to be upgraded to support such
  additional quantities, and a new line of around
  140 km is to be by Government and/or third
  parties.

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Uranium of Poli Resources Reserves

• Detailed mapping, ground radiometrics, trenching
  and sampling of the Salaki radiometric anomaly in
  the Salaki concession, 22 kilometres WSW of
  Kitongo. The work delineated a 500 metre long
  zone of elevated radiometric values of
  100-12000cps in microdiorite, brecciated basic
  volcanics and volcaniclastic sediments along a
  major NW-trending fracture. Ten representative
  grab samples of the various lithologies in the
  prospect assayed in the range 324-8293ppm U3O8.

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Uranium (ctd) Teubang

• Mega conducted a detailed helicopter-borne
  magnetic-radiometric survey over the area,
  comprising 8900 line kilometres at a line spacing
  of 150 metres and flying height of 30 metres. The
  survey highlighted numerous radiometric anomalies
  and other areas of interest and ground follow up
  is planned to began in may 2010.

Distribution of the anomalies on the Teubang
research permit
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Uranium (ctd) Lolodorf

• A detailed 7350 line kilometre helicopter-borne
  magnetic-radiometric survey over the entire
  Lolodorf property at 150 metres line spacing and
  flying height of 30 metres. The more prominent
  radiometric anomalies detected in the survey have
  been followed up by ground radiometric surveys,
  trenching and geochemical sampling. Several
  drilling targets have been identified, but
  drilling has been deferred due to budget
  constraints.

Trenching to expose uranium mineralization in a
prospect
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Gold of Batouri resources reserves (ctd)

• 3.5km envelope of gt250ppb Au in soils (2)
• Granite hosted quartz vein and stockwork deposit
  (4)
• Extensive artisinal pitting on coarse-gold
  bearing veins (4)
• gt8,900m of diamond drilling completed, high grade
  results 1m _at_ 132g/t (3)
• 6.8m _at_ 8.86g/t (5), 1.5m _at_ 49g/t (3), 1.5m _at_
  43g/t (2) 2.67m _at_ 66g/t (2)

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• THANK YOU
• FOR YOUR KIND
• ATTENTION