Member Info for AGEOS

Those “potential additional development opportunities” which AC alludes to in today's tweet, clearly relate to Congo [Brazzaville] and reinforces the numerous RNS and other publicized hints of further acquisitions in that jurisdiction.

The most relevant RNS is that of 07.07.2020 re “Joint Venture Agreement for acquisition of second oil production asset in the Republic of the Congo” with a local oil and gas company. As previously detailed, in a post dated 10.07.2020, I identified the most likely acquisition target as being the Kundji Field, one of the four MKB fields [Mengo, Kundji, Bindi & Tchiniambi, 700sqkm] all operated by SNPC and producing on a very limited scale from the Mengo reservoir sands. Following the acquisition of Tilapia, ZEN's negotiations could extend beyond Kundji, with the Mengo Field being the major prize. The postulated middle-eastern loan finance would have to be an essential component of the package however, as the Mengo is a 'tight' reservoir requiring technical stimulation. Elf extracted 1.5million bbls from the MKB Mengo sands over 12 years to 1992, and Panoro Energy & PetroCl each with 20% interest resumed test production in 2010 but subsequently handed the license back to SNPC. MKB has an estimated >1billion bbl in place in the Mengo sands which are oil saturated but resistant to flow, and further untested potential in the deeper Vandji sandstone the main producer in the nearby M'Boundi Field.

An additional or alternative target is indicated by the references to “majors offloading marginal assets producing less than 12,000bopd”. In the Congo context only ENI the Italian global O & G company conforms, as in July 2020 it indicated a wish to dispose of its interests in the M'Boundi [83%], Kouakouala [75%], Zingali & Loufika [85% or 100%] fields, the only developed portion of its 4725sqkm onshore interests. Of these the M'Boundi O & G field has been by far the most productive. Discovered in 2001 by Maurel & Prom it was acquired for $1.434 billion, by ENI in 2007, together with the other three fields when producing around 17,000bopd. ENI financed construction of a sea-water pipeline to the field for water-injection stimulation thereby upping production to c40,000bopd and commissioned a gas to power scheme for two power plants in Djeno supplying most of the country's electricity. 2019 bopd numbers for M'Boundi are not ascertainable but I suspect are well down from the 2010 peak so maybe below that 12,000bopd figure mentioned by AC. ENI retain very considerable O & G offshore production interests in the Congo and also finances a wide range of community and related social and environmental projects in the country, so disposal of their onshore O & G production interests would not necessarily involve the acquirer also having to shoulder the responsibility of related infrastructure which is probably considerable. A mighty challenge for AC's negotiating skills but maybe the Italian connection has its advantages.
AGE

Those who have read and applied the information in my posts of 11.12.2020 & 29.01.2021 will be well placed to assess the contribution of the anticipated well-logs and assays to the potential resource at APTA as and when published. Chief amongst these are the results from 075 & 077 which are step-outs from 072.

In anticipation of these step-out results I have constructed a 100m block-model centred on the vertical plane occupied by these three drill-traces in order to quantify the potential Au resource of this portion of the VMS, which contains by far the thickest high-grade intercepts recorded to date. An assessment of the 925-825m asl [above sea level] block, extending 50m to both N & S along strike [ at 90 degrees to max dip] incorporates the data from hole 072 and 9 legacy holes to provide the following resource estimate:

114,907oz Au, based on 1,234,530t @ 2.895g/t Au.

Hole 075 will provide data for resource assessment of the 825-725m asl block, and hole 077 for the 725-625m asl block, but without any corroborative data for the 50m along strike to N and S. Data is also lacking for any extension of the high-grade zone from 925m asl to ground level [c 1100m asl] The block modelling may be extended southwards if sufficient drill data is forthcoming.
AGEOS

So OMI have finally acknowledged that APTA is primarily a VMS system, a hypothesis I have been advocating via numerous detailed posts since 21.10.2018.

Although the extent of an undoubted epithermal overprint at APTA remains unquantified, the implications of recognising the primary mineralisation as VMS, has considerable significance for investors. This significance is inherent and often specifically stated in many of my posts during the past two years and has resulted in considerable negative response from this forum.

I will not repeat the relevant content of those posts at this time but will endeavour to summarise the most important implications of the VMS model for potential at APTA when I have more time,. hopefully this coming weekend.
AGEOS

A fascinating interview hinting at some substantial developments in progress, including the following:

15.23mins “so in Congo we are discussing already our second and possibly third and fourth assets...” I've posted details of potential targets in several posts eg 10.07.2020

24.20mins “process that can have the ability to bring us to 18-20K bopd in 12-18 months, because the simple calculation is if we only take two fields that average 9-8K bopd...” This followed his explanation of how the majors were off-loading marginal fields, which they defined as anything up to 12K bopd. The M'Boundi Field in Congo [ENI] is such a target.

27.10mins “..if we do something in Angola...” I referred to Angola as a possible target in previous posts [21.02.2020 & 21.06.2020] so it seems this may still be on-going.
AGEOS

Magictrades
Thanks for the endorsement of Friday's contribution relating to the APTA drilling program. Also reassuring to know you agree with the hypothesis of APTA possibly being a part remobilised Cretaceous VMS of Kuroko type with an epithermal overprint [your post Wednesday 16.51]. Early days still and a lot more drilling required to clarify the structure and its extent.

With reference to the section [Fig 1]included with the Jan 25 RNS, this is the first indication of a detailed stratigraphy beginning to emerge from the core data, albeit very poorly represented visually and difficult to decipher. However, if I have interpreted it correctly, the 4.10m @6.52 g/t Au in 072, which is referred to as “a thin hanging wall mineralised fault”, is from the key described as 'lodolite'. Frankly I've never come across this term before and it appears to have a very dubious usage and not at all in a scientific context. As you will be at the cutting edge of geochem interpretation, is a distinct horizon of Au enriched, chlorite infused quartz [lodolite] of significance in the metallogenesis story?
AGEOS

Rob, just reading it is insufficient. You have to refer to the page 8 map and the Tech Report cross-sections. If after that you have any questions, post them Sunday and I will reply.
Not a case of being "happy" or otherwise as it is entirely factual. As Brad would say "the geology never lies".

continuation

MAP-074 This appears to be drilled from the pad used previously for holes 35 and 36, @ azimuth 295 ie WNW and 58 degrees dip. For a cross-section go to Figure 42, page 110 of the Technical Report NI 43-101 January 2019 via the company website. Holes 35 and 36 were drilled at c70 degrees dip, so 074 at 58 degrees should intercept c50-60m of the main breccia 70-80m updip. Hole 036 recorded 20.4m @ 5.4g/t Au and 21m @ 2.16g/t Au within the main breccia so expect comparable assays but higher if supergene enrichment is a factor. Hole 074 should also intercept at shallower depth, two narrow zones of mineralisation which represent the central zone of the three shown as high grade zones on the page 8 presentation map.

MAP-078 For some inexplicable reason this is being drilled from a point just N of pad 38 and at 295 azimuth and 50 degrees dip. So it appears to be an exploratory hole into the hyaloclastite west of the main breccia zone.

MAP-073 & 076 These are drilled from locations c20-30m N of legacy drillpad 11 @ 295 azimuth, so WNW and at 50 & 58 degrees dip. For the cross-section go to maps 20 & 33, page 113 of the Tech Report detailed above. Holes 073 & 076 are located to intercept the complex multi-zone mineralisation previously logged, including the 5.8m @ 29.48g/t Au within the massive gypsum horizon. These holes should also intercept at shallow depth, the most easterly of the three main high grade zones, not shown in the two cross-sections.

Significant as these additional drill holes are, it is clear they are confined to the previously drilled APTA area and limited to the 500m N-S x 200m E-W extent of the high grade zones as shown on the page 8 presentation map. I leave others to draw whatever conclusions they wish from this data.
AGEOS

The recent RNS includes the coordinates, azimuth and dip for each of the 8 holes in the current drill program at APTA. For those who wish to evaluate the potential of these within the context of the 71 legacy holes, simply access the drill data map on page 8 of the “December 2020 Turner Pope Investment Presentation – Orosur Mining Ltd – next chapter” via the company website [Investor Centre/Presentations] and supplement as follows:

MAP-072 This was drilled from a point 60m ESE of drillpad 43 @ azimuth 293 [ie WNW and approx parallel to hole 43. Note that holes 60 and 62 which are included in the drill-section [figure 1] of the RNS were drilled from a pad c40m NE of pad 43 and in a NW direction so they intersect the main mineralised breccia zone 50m N of the 072 drill hole. This indicates that the high-grade breccia logged as 110m thick in 072 thins to c75m max in 060/062 along strike [ie 90 degrees to dip] and continues to thin northwards to an inferred close just N of hole 45.

MAP-075 This is a step-out from 072, from a drillpad c60m further E and at 51m lower altitude. It runs parallel to 072, and as shown on the fig 1 section and reported in the RNS, it intersected over 100m [not true thickness] of the high grade main breccia zone 90m downdip from 072. Assay results comparable with that of 072 ie a weighted average of 70.5m @ 3.53g/t Au or above would be encouraging. Anything significantly less might indicate local supergene enrichment at the 072 level..

MAP-077 This is drilled from the same pad as 075, @ the same azimuth, but at 69 degrees dip, so targeting the main breccia a further 70-90m downdip. Comparison of breccia thickness and assays with those of 075 will be indicative of further depth potential.

To be continued

The 08.01.2021 Investor Call is now accessible via the ZEN website [ click on News & Media]. Having missed the original event I've just played it through; difficult to follow at times due to AC's rich accent but worth the effort especially regarding the following revelation which I am not aware of anyone having posted details previously. Apologies if anyone has.

During the Q & A session, beginning at 36.00mins and in response to a question regarding assets, AC outlines, through to 39.50mins, the intention of acquiring a single substantial producing asset in “Central Asia or Africa” and states “our main target in the next six months is to conclude acquisition of a single field producing 2000-5000bopd”. He refers to “two peer companies” having such fields in addition to many smaller fields, implying current negotiations in progress on two fronts. It is also clear from this and the rest of the presentation that this potential acquisition is in addition to Tilapia, Nigeria and Tunisia [Sidi El Kilani]. He also refers to such a 2000+bopd producing asset justifying a £50-£60m mkt cap, a figure which I recall was previously posted but without the context I have outlined.
AGEOS

Magictrades, 3.58mins into his presentation Brad states, if I have transposed it correctly, “previously noted that the gold events are quite young....Late Miocene, but recent and earlier drilling showed a VMS system....don't know whether these two are related or separate events exploiting the same structures”

He is clearly referring here to the APTA prospect and to the possibility of multi-phase mineralization including a Miocene age epithermal overprint onto a Cretaceous VMS phase. I detailed a possible variation on this in a post dated 16.01.2019 relating to the NI 43-101 ANZA Tech Report [see post paragraphs 3-6] including comparison with the El Roble Mine further south.

You will of course appreciate the significance of a VMS component to the massive sulphides at APTA especially if this proves to be the major primary source of the Au. Will be very interested in your analysis.
AGEOS

Click on AGEOS top left; it's all in post history to which you are welcome.

magictrades. Welcome fellow-geologist. As I've been carrying the baton here for two lone years I shall be only too happy to pass it on to you, if you wish to take over. I've just been through your post history and video and am suitably impressed.
Best wishes.

Potential news flow should also include a possible W African acquisition for which, as I have posted previously, Gabon appears the most likely candidate.

The BCRA Credit Rating Report of August 2020 provides the latest reference as below.
“Currently,Zenith is in the final stage of negotiations to acquire assets in Nigeria and in another Western African country to be named “

An RNS of 12.02.2020 provided the following details:
“Potential acquisition of major production asset,
West Africa Zenith Energy Ltd., ("Zenith" or the "Company), (LSE: ZEN; TSX.V: ZEE; OSE: ZENA-ME), the international oil & gas production company, is pleased to announce that it has entered into final stage negotiations with a national oil authority to secure a material oil production license in West Africa. ("Potential Acquisition")
The Potential Acquisition, formerly operated by a major international oil company, last produced at a rate in excess of 1,000 barrels of oil per day.
Following extensive due diligence, the Company believes an initial production rate of approximately 1,000 barrels of oil per day can be achieved via a rehabilitation programme, the costs of which Zenith expects will be repaid within a timeframe of 2-3 months once production has successfully been restored using a conservative oil price benchmark of US$40 per barrel. “
AGEOS

Florida, if the Africa Oil+Gas Report is factually correct in stating that “161 companies, in total, are in the three tiers” and we assume that the Field ZEN were bidding for is not one of the “four fields left unawarded”, it seems reasonable to conclude that yes ZEN's bid has been successful thus far.

If we are in Tier 1, then ZEN and its partner are through to the next stage (Step 9) which is defined as “Farm-out Agreement Negotiation and Signing”. If we are in Tier 2 or 3, then there will presumably have to be negotiations with other interested parties before procedure to the “Farm-out” stage which is likely to entail a “Joint Farm-out Agreement”.

Each Marginal Field is subject to an Oil Mining Lease (“OML”) so Step 9 involves negotiation with the holder of that Lease to agree a “Farm-out Agreement”, which allocates responsibilities and liabilities of the parties as well as the royalty payable and terms for accessing infrastructure. The OML may be held by an International Oil Company. If a Farm-out agreement cannot be achieved then the DPR [Nigerian Dept of Petroleum Resources] will step in to broker one.

That's as far as I understand the situation and process.

Ezhik, pleased to read your contribution and agree entirely with your analysis. Whatever the Tier allocation of the ZEN bid I have every confidence in AC's ability to negotiate a favourable deal or if deemed too risky, to walk away. I admire the tenacity of the man but also believe that he won't jeopardise his goal of creating a mid-tier energy company by involvement in an unduly problematic venture.
How's the armchair? Probably sick of my backside this year, as is evident from an over-indulgence in BB posting. First evidence of a lapse in covid and I'll be off to one of my mountain retreats.

ZEN appears to be a step nearer to achieving its ambitions in Nigeria but much will depend on which of three tiers its bid falls into as indicated in the Africa Oil+Gas Report below:

https://africaoilgasreport.com/2020/12/farm-in-farm-out/three-tiers-of-winners-to-emerge-in-nigerias-marginal-field-bid-round/

If Tier 1, it appears the Field will have been allocated to ZEN plus its as yet unnamed Nigerian Oil Company partner. If Tier 2, they will have to contend with another bidder presumably either as a rival or a potential third partner. If Tier 3, there could be any number of rivals or possible partnerships.

The signature bonus will apparently be comparatively low, ie less than $1m. However as the 18.09.2020 RNS stated “In the event our Bid is accepted, we have already received positive indications from a number of pan-African financial institutions regarding obtaining the necessary financing to develop the asset and achieving commercial production. “ we have some reassurance regarding the financial implications.
AGEOS

Toonarmy2011

No I have never worked for Miranda/Outcrop. My reference to colleagues at Outcrop Gold is a recognition of 'fellow geologists'.
If you had read my posts you would know that I have detailed aspects of the Miranda / Newmont 2018 Agreement regarding Lyra and Pantagora numerous times especially 12.08., 29.05.2020 and 10.03.2019.
Your statement “In 2020 Newmont's geoscientists and field geologists advised Newmont that Miranda/Lyra ( effectively the land between Buritica and Anza ) was not worth pursuing and Newmont withdrew from the agreement, to focus all their attention on OMI.” is not one I recognise so could you please supply the exact reference to its origin. If it is of your own making then I suggest you might like to reconsider.

Obviously the Agreement was terminated but I am unaware of any publicly stated reason either from Miranda/Outcrop or Newmont as to why it ceased. Both parties were free to withdraw without liability and as Eric Sprott became a major strategic investor in Outcrop Gold in February 2020 on the basis of the Au/Ag Santa Ana prospect in S Colombia, it is equally possible that Outcrop terminated the Agreement, not Newmont. Eric Sprott's billions wield huge influence in the Au/Ag mining industry and he would not tolerate a potential competitor.

Toonarmy2011, suspecting you to be a fellow celt I thought in the interests of solidarity I should disavow you [and your 8 recommenders] of your mistaken impression as expressed in your post below:
Ageos - I don’t [know] why all the world’s leading mining companies employ field geologists at very high salaries when they can just recruit an armchair geologist like yourself, who will direct them on a computer screen to huge mineral deposits.

The days when mining companies employed “very highly paid field geologists” are long gone. They will be well paid but are mostly the junior 'rock-knockers' high on the excitement of travel and exploration in exotic places. That soon wears thin as Brad implied with his reference to the ausy outback. The very highly paid company geologists are the geochemists, geophysicists and geo-mathmeticians specialising in project probability assessments, who sit in front of computers manipulating the field and laboratory derived data. It is they who 'find' the huge mineral deposits often without ever being in the field except perhaps on a company 'jolly'.

Thanks for prompting recollection of the quarter million miles I walked through the ice-fields, tundra, deserts, jungle and mountains of the world, as I recline in my geologists armchair with computer screen at hand.

Walkabout, apologies for not responding to your post yesterday evening. I do have a life beyond this forum and Sunday evenings are for family.
Do I believe....there is only approx 500,000oz of resource to be extracted? “Resource” is assessed as “defined” and “inferred” based on assays from drill cores. So from the drill results to date from APTA, as I have posted in detail, the resource is approx 500,000 oz Au max. Could it be more? Of course it could, based on further drilling. If you bother to read my 2018 post detailing my resource estimates I clearly state there is scope for up to 1M oz Au based on available evidence. If further drilling proves an anticlinal structure at APTA, as postulated in the detailed Snowden Tech Report, there could be a very significant down-faulted extension to the high-grade zones, a few hundred metres west of the core structure.
For the other existing license areas of Charrascala and Guaimarala only drilling will reveal further resource but as evidence from soil samples, aeromagnetics etc suggests , there is a 'probability' assessment in favour of a positive outcome.

On what grounds would Brad say this has the potential to be a massive top tier source? For all the reasons he clearly states, ie because ANZA is geologically within the Cauca Mineralisation zone which has proven economically mineable mineral resources. The emphasis must always however be on the word “potential”.

Most of your other questions appear not intended to elicit facts, rather opinions intended to provoke argument, a pointless exercise I shall avoid. If you wish to rephrase them in less confrontational terms I will be happy to reply. Contrary to what some claim I do not have an “agenda” regarding OMI, I simply report the geological realities as I understand them. My understanding at times may well be at fault, in which case please high-light such errors but always with supporting evidence. Opinions and beliefs count for nothing.

I do not disclose personal investment details and never have done.

Best of luck with your investing; 'luck' is a significant factor but evidence is important too.

Professor1, in the context of the mid-Cauca belt epithermal is potentially more favourable as evidenced by the extent and grades of Buritica.. VMS has the potential of occurring in clusters, each deposit usually less than 1M oz Aue [Au equivalent] as often multi-element, but always high-grade, eg the 15 prospects aligned N-S of the El Roble Mine. As I posted on 16.01.2020, [paragraphs 5 and 6] APTA has stratigraphic similarities and therefore continuity to that N-S El Roble trend.
Re your earlier queries, there is also a shallow tonalite-diorite intrusion in the vicinity of Charrascala-Guaimarala so another potential source for both porphyry style and epithermal mineralisation and hence their target status.