Mabwe
Minerals, the majority-owned subsidiary of Raptor Resources Holdings Inc.
(OTCQB: RRHI), has assembled a land package in northeastern Zimbabwe at their
recently expanded Dodge Mine site (just northeast of Harare) which will satisfy
rapidly mounting regional demand for barite, the critical weighting agent for
drilling mud used throughout the oil and gas industry. With upwards of 80% of
API-grade barite going directly into the oil and gas sector, accelerating
regional (as well as global) drilling activity provides a strong future for
MBMI’s Dodge Mine and the company has stitched up the logistics to boot.
Over 160k
tons of annual capacity have been secured via strategic partner and the biggest
grain importer in all of Harare, PHI Commodities, whose fleet of National
Railways of Zimbabwe non-stop express train-supported rail wagons are provided
to MBMI with exclusive rights on outbound loads from the Shamva Rail Depot. Adding
engagements with local Zimbabwean trucking companies, Mabwe has lined
everything up for maximum offtake from mine to market, with a dual land
transport equation for getting product directly to the Port of Beira, southeast
across the border in Mozambique.
Angola,
Tanzania and neighboring Mozambique are huge oil development markets with a
variety of factors that make them highly appealing to foreign investment from
some of the sector’s biggest players. The Pande and Temane gas field areas in
Mozambique are of particular interest, with a spate of onshore targets now
being developed that add significantly to the already impressive offshore gas
discoveries, with Anadarko and its partners surpassing 100 trillion cubic feet
of gas discoveries since 2010. The underlying Rovuma basin, that stretches out
into the water (where Anadarko-operated Offshore Area 1 is located) from the
borderlands between Tanzania and Mozambique, holds a great deal of potential
for future oil discoveries. With limited oil exploration thus far, the upside
for MBMI and barite market dynamics in general from this one area alone should
be apparent to most investors.
Wentworth
Resources, Ltd. (LON:WRL), part of a larger consortium focused on Mozambique
and in which Anadarko Petroleum Corp. (NYSE:APC) is a major player (as well as
the operator), announced last month that they have begun drilling an onshore
concession (initial estimates in the neighborhood of 1.2B bbls of oil and 2.4
Tcf of gas) in the northern Cabo Delgado province (Rovuma basin). This drilling
is just the latest signal flare to markets regarding the extensive onshore and
offshore potential in the still largely unexplored sedimentary basins of
Mozambique.
Mozambique
becoming a fast-growing oil producer with plenty of upside potential still to
be tapped is big news for MBMI and the now over 1.1k-acre Dodge Mine complex,
which stretches across four mountains, also hosts high-grade barites. These
premium barites are much sought after and fetch top dollar for various
automotive, medical, and paint additive applications, as well as being used in
specialty robust concretes, giving MBMI access to lucrative niche markets in
addition to the larger oil and gas demand for their regular grade barite.
Secondary
limestone production at Dodge Mine can feed local agricultural/construction
markets as well and with widespread gossan deposits (a solid pathfinder for
gold and silver) alongside surface sampling that indicates the presence of
gold, as well as copper, nickel, lead and zinc, Mabwe Minerals is sitting on
some really nice dirt. With the JCI core drilling/ADIT tunnel program data from
the late 60′s having indicated a 15-year supply of barite at the Dodge Mine
roundly backed-up by the ASCON Africa validation study data, which shows
approximately 441k tons of barite and 531k tons of limestone reserves on just
7% of the now expanded property, there are a lot of reasons to like MBMI and
its parent company.
In the
U.S., where fracking has led to the country becoming top dog in terms of global
oil production as of this year, we import upwards of 75% of what need and only
15% of that imported barite doesn’t come straight from China. The broader
market for barite remains healthy for the foreseeable future and whether we are
talking regional or global, Mabwe Minerals has the digs and the throughput to
help satisfy drilling demand.
For more
info on Mabwe Minerals, please visit www.mabweminerals.com
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