ANKH Resources: Transforming Egypt's Mining Sector
Updated 10/3/2023 8:00:00 AM
Arab Finance: The Arabian-Nubian Shield (ANS) is a region that has been gaining attention as the world's next mining destination. With its vast mineral resources, including gold, copper, and potash, the ANS has become an attractive location for mining companies looking to expand their operations.
ANKH Resources is one such company that has established itself as an exploration company specializing in gold exploration in the ANS. In this interview, we will be speaking with the CEO of ANKH Resources Mostafa Talaat, on behalf of the company's leadership team to learn more about the company's focus on precious and strategic minerals, its exploration strategy, and its contribution to local development and employment opportunities.
1- Can you tell us about Ankh Resources Ltd. and its focus on precious and strategic minerals?
Ankh Resources, established in Jersey in 2021, is a junior exploration company that specializes in gold exploration in the Arab Nubian Shield (ANS). The Ankh Resources team of founders is comprised of esteemed mining professionals who are considered pioneers and the first generation of experts in the Egyptian gold mining industry.
Our focus on precious and strategic minerals, besides the economic value and the opportunity to generate substantial discoveries and being an attractive investment opportunity for investors, is driven by the fact that they are a limited supply resource, which is critical for the development and widespread adoption of clean energy technologies.
2-Can you provide an overview of the current state of the mining industry in Egypt and the role of Ankh Resources Ltd. within it?
The mining industry is subject to changes and developments over time. Egypt has recently undergone a major transformation in the mining sector, starting with the introduction of the new mining code, which opened doors for investment flow into the sector. The Ministry of Petroleum and Mining, led by minister Tarek El-Molla, is focused on developing the mining industry through infinitive measures, as we have seen over the last few years.
From a mere four companies before 2020 to more than 16 companies over a span of three years, is a remarkable improvement. Ankh Resources is one of these companies, and we were awarded a highly prospective gold-copper porphyry concession, DARA, in the Red Sea district of Rhas Gharib. We are committed to supporting the growth and development of the industry, which is making the mining contribution of 5% to the overall gross domestic product (GDP) of the country’s economy by 2040, compared to 0.5% currently by our focused strategy of finding Tier 1 and 2 types of resources. Our commitment is to ensure responsible and sustainable exploration and mining practices to minimize environmental and social impacts and promote a greener and more sustainable energy transition.
3-Can you describe the company's exploration strategy, and how do you identify promising mineral deposits?
Ankh Resources has a technical team with vast experience in precious metals exploration in the Eastern Desert, which reflects the company's current target generation for exploration to identify and evaluate promising mineral deposits for potential extraction. While the specific details of the strategy can vary depending on the company’s growth and its resources, I can give you a general overview of our exploration process and how we identify promising mineral deposits.
Their exploration strategy involves a systematic and scientific approach to prospecting and evaluating various geological targets. The general exploration process begins with extensive desk-based research, which involves studying existing geological maps, historical mining data, academic literature, and other relevant sources of information that help identify areas with geological features or mineralization potential that may be worth investigating further. Based on the results, the exploration team identified prospective target areas for further evaluation. Then, the exploration team conducts field surveys to gather additional geological data, which involve various activities like geological mapping, rock and soil sampling, geophysical surveys, and geochemical analyses to determine the subsurface geology and identify areas with anomalous mineralization signatures.
The most prospective targets are identified based on the results of geophysical methods, surveys, and remote sensing techniques, including satellite imagery, aerial photography, and geophysical data. From here, drilling is conducted to obtain core samples from the subsurface, which are then analyzed in laboratories to determine the mineralization and grade of minerals of interest.
4-How has the presence of multiple mining companies in the sector contributed to local development and employment opportunities?
The presence of multiple companies exploring and operating in any country has a positive impact on local development, especially employment opportunities. Mining companies often provide training programs in preparation for employment in the industry. Operating mining companies requires a significant workforce, which helps reduce unemployment rates and economic well-being. Mining companies provide an opportunity for stimulation of growth in the local supplier network to meet the increased operational demands in the industry. Infrastructural development in the areas where the mining companies operate can be beneficial to the local communities through corporate social responsibility (CSR) programs. Mining companies can also generate substantial tax benefits for the government.
5-Can you discuss any recent milestones or achievements of Ankh Resources Ltd. and how they have contributed to the company's growth?
The first considerable milestone after establishing Ankh Resources is the award of exploration rights to utilize its expertise as a company and teams in generating value for its shareholders, and this is Ankh’s current position in the market. Winning the Dara concession in the second bid round of 2020 provided us with a unique chance to explore and develop our initial resources in the ANS. The outcome of our geological investigations will play a crucial role in determining the level of success we can achieve with this project. Moreover, positive results will open doors to additional milestones and future projects, thereby expanding our company's portfolio.
6-What strategies do Ankh Resources Ltd employ to manage and mitigate the risks associated with gold exploration?
“The Right Balance” is the strategy Ankh adopts for the risk mitigation associated with gold exploration by identifying or acquiring projects that contain diversity, like geological formation, to offer strategic minerals like copper, as with our current concession.
While gold is often considered a safe investment in uncertain market conditions, it is not immune to various global factors that can dampen investor interest. In contrast, copper plays a vital role in the global shift towards green energy, making it a highly strategic mineral. This focus on sustainable energy sources is what can provide junior exploration companies with resilience during challenging periods for gold. Adopting a more ambitious approach, we are pursuing the exploration of similar deposits, despite their rarity. Our focus lies in the ANS, which remains largely underexplored, and we are committed to continuously identifying and targeting these types of deposits within the region. Considering that exploration carries inherent risks, we strive to be prudent and efficient in our expenditures, aiming to maximize value creation for our investors.
7-Can you share with our readers the financial performance of the company last year?
Our company is currently in the early stages of exploration, and our financial performance primarily revolves around annual fundraising campaigns. In the previous year, we successfully completed a fundraising campaign, securing a total of $2.5 million from our current investors since inception. This funding was primarily allocated to cover the expenses of the bid round participation and the first year of exploration activities. As our geological investigations progress and the project advances, our financial requirements will naturally increase over time.
8-Can you describe the company's relationship with local communities and how do you engage with them?
Ankh Resources has a strong relationship with the local communities, particularly in Ras Gharib, where our current project is based. Ras Gharib has already attracted significant investments in the oil and gas sector, resulting in the availability of a skilled local workforce. We are committed to engaging with the local communities and understanding their needs. We focus on identifying areas for improvement in the health sector and the overall quality of life. By addressing their needs, we aim to contribute to the well-being and sustainable development of the local communities.
9-What are some of the biggest challenges facing Ankh Resources Ltd in the current market?
One of the main challenges is the limited presence of experienced geologists due to the relatively recent increase of companies. This creates a need for substantial investments in capacity-building and training programs to develop a qualified workforce.
Additionally, the availability of suppliers and contractors who can provide exploration services is still limited in this newly opened market, which offers great opportunities for service providers who are willing to establish their businesses in Egypt. This presents a favorable environment for growth as the market continues to expand.
10-Can you share your vision for the future of Ankh Resources Ltd. and how do you plan to lead the company towards that vision?
Our long-term vision for Ankh Resources Ltd. is to establish ourselves as one of the premier exploration and development companies in the ANS region. We leverage our Middle East and North Africa origins, which provide us with a unique advantage in understanding how to operate and navigate within these countries. Furthermore, we aim to capitalize on our existing technical expertise in the ANS formation. To achieve this vision, we prioritize building strong relationships with key stakeholders and gaining a deep understanding of the strategies employed by ANS countries.
By proactively establishing these relationships and staying informed about the countries' plans and developments, we position ourselves to take advantage of first-mover opportunities offered by the right markets. We firmly believe that our strategic approach and regional expertise will position Ankh Resources Ltd. as the ideal investment opportunity in the ANS region. We are committed to delivering maximum value to our investors and capitalizing on the lucrative potential that the ANS has to offer.
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