New York City-based mining company, Tresor Gold, is currently raising capital to scale its gold projects in Sierra Leone for production within 18 months, while also pursuing strategic acquisitions of critical metal projects in West Africa.
The company is leveraging geotechnical data, predictive analytics and local expertise to identify areas of favourable mineralisation, and through its intelligent research of artisanal activity and soil sampling, will structure effective drilling programmes.
The company says that as an accredited US federal government contractor, it aims to provide a strategic solution for public and private sector interests seeking sustainable metal investments in West Africa.
The decision for the investment is based on a recent study undertaken by Tresor looking at investment opportunities in West Africa’s gold and critical metals mining sectors, which found that investment in the area is poised to become increasingly appealing.
“West Africa’s metals and mining sector, with its relative underdevelopment, attracts investors who find reassurance in the region’s growing stability,” says Tresor Gold CEO Tony Lawson.
The study was conducted by independent research agency Pure Profile during April this year as instructed by Tresor Gold, and spanned global institutional investors managing over $307.5-billion.
The study incorporated information from about 100 metals and mining investors working for sovereign wealth funds, pension funds, private equity funds, venture capital funds, and family offices responsible for assets under management in Canada, Australia, the US, the UK, the United Arab Emirates, France, Germany, Switzerland, Qatar and Saudi Arabia.
Forty-one per cent of respondents to the study believe investment in the sector will significantly gain attractiveness over the next five years.
One of the key factors attracting investors to the metals and mining sector in the region is its growing stability and relative underdevelopment.
The research findings indicate that an additional 52% of respondents expect investment to become slightly more attractive over the same five-year period, while only 2% anticipate decreased attractiveness.
Tresor Gold adheres to the World Gold Council’s Responsible Mining Principles and the United Nation’s Sustainable Development Goals, as part of its commitment to sustainable practices and positive mining impacts.
The study highlights geopolitical concerns as a major issue for investors.
Nearly all participants – about 99% – agree that the US and its allies will intensify their focus on African investment within the next three to five years, partly to safeguard the resilience of their metals and minerals supply chain.
About 37% of respondents strongly agreed with this view, pointing to recent visits by senior US politicians, including President Joe Biden, to the region as evidence.
Despite the optimistic outlook for investment in West Africa’s gold and critical metals sectors, the research conducted by Tresor Gold sounded an alarm about Chinese and Russian mining activities in Africa.
The research revealed a significant and increasing volume of metals and minerals mined in Africa by these countries, heightening the perceived risk to the US and its allies.
About 90% of respondents believe this risk will surge over the next three years, with about 24% warning of a substantial increase in the risk level.
The findings underscore the importance for investors and stakeholders of closely monitoring the growing influence of China and Russia in the African mining sector, navigating the evolving landscape, and capitalising on Africa’s promising opportunities.
West Africa stands as an “exceptional” jurisdiction for gold and critical metals mining, offering a “unique value proposition”, says Lawson.
He explains that the region boasts transparent mining policies and streamlined licensing processes, ensuring efficiency in operations. The region also maintains standard corporate taxes and royalties, which are on par with other major mining jurisdictions.
Notably, West Africa’s track record of consistent gold discoveries of between one-million ounces and three-million ounces, spanning over a decade, surpasses that of any other region globally, points out Lawson.
With a recent history of being a top gold-producing region for several years, producing over 14-million ounces a year, West Africa has showcased its abundant mineral wealth, he adds.
Supported by stable and mining-friendly governments, along with accessible infrastructure, West Africa presents a compelling opportunity for investors seeking solid prospects in the gold and critical metals mining sector.
“Junior mining companies like Tresor Gold are actively capitalising on the region’s potential, prioritising sustainability, and contributing to responsible mining practices,” concludes Lawson.