Early stage due-diligence studies indicate that there is unquestionable prospecting potential in Uganda, a country endowed with a wide variety of mineral resources, said Marius Welthagen, CEO of Thabex Exploration.

The company recently acquired 100% of Cresta Mining Company (CMCU), which owns ten exclusive prospecting licenses (EPLs) in that country.

Inspection of the EPL areas, clustered in the south-west of Uganda, has confirmed management’s initial assertion that the region holds much promise for grass-roots exploration.

Intensively mineralised, gold is predominant in the south-west, while nickel-cobalt-copper deposits, in ultramafic intrusives in Proterozoic metasediments, are also prevalent. “Apart from large companies engaged in mining and mineral processing, most mineral production is carried out by small-scale operators and artisanal workers.

“This forms part of Uganda’s hardworking and entrepreneurial culture, evident in the numerous small gold workings conducted in riverbeds through hand panning,” explained Welthagen.

One of the licensing areas, under license to Cresta Mining, has shown potential for gold, indicated by an abandoned lead-mine where commodities such as gold and copper were extracted as by-products in the past. Although mining ceased at the mine when the water table was reached, the potential exists to prospect for further extensions to this lucrative ore-body.

Other license areas show evidence of hydrothermal activity, normally associated with gold veins.

“All these geological signs and indications are favourable for a potential mineralisation event. Base-metals recovered from the random blasting and extraction validates our commitment and investment to further explore the areas with a methodological approach,” commented Welthagen.

“When these EPLs were offered to Thabex they were at an early stage of exploration. Systematic exploration had not been done. These initial results of the due-diligence study bode well for Thabex as the potential still lies uncovered and, in conjunction with CMCU, we are ahead of the pack considering the renewed offshore interest in the mineral potential of the region.

“With all base-metals bullish performers at the moment, indications are that the Uganda operation will perform well for Thabex,” Welthagen added.

“Thabex is widely recognised for its expertise in grassroots exploration. As a smaller exploration company, Ugandan prospecting license-owners are more amenable to enter into discussions with Cresta Mining/Thabex when negotiating the acquisition of additional prospecting areas.”