AMN - EGYPT: Hamama to be second gold operation

Aton Resources, through its wholly-owned subsidiary, Aton Mining, has notified the Egyptian Mineral Resources Authority (EMRA) of its intention to make a declaration of commerciality at its Hamama Gold Project. Hamama is, therefore, set to become Egypt's second operating gold mine.

Aton intends to move towards its goal of construction of a producing mine on or before the end of 2019.

In this regard Aton, as per its Concession Agreement, will finalise its study in support of its commercial discovery on or before May 20, 2018.

The project study will encompass an open pit heap leach mining operation, with production commencing from the gold oxide cap at Hamama West.

The company plans to continue its regional exploration program over the highly prospective Abu Marawat Concession.

In this regard and in recognition of the work being carried out to begin mining at Hamama, EMRA has agreed to grant Aton a two-year extension until July 31, 2020 of the company’s exploration licence covering the balance of the Abu Marawat Concession area not covered by the Hamama exploitation licence in recognition of this accelerated intention to declare commerciality.

EMRA and the Ministry of Petroleum (MOP) realise the long-term nature of mineral exploration and development, far longer than in oil and gas. As Aton’s partner, EMRA is fully aware that this continued exploration work is critical to the potential development of the Abu Marawat Concession area, and that this will unlock the overall potential of the concession, as well being a driver in the development of the economy and will increase employment in Upper Egypt.

“This is a historic day for Egypt and Aton, as we are only the second company, after Centamin in 2001, to issue its intention to declare a commercial discovery, and we will now move towards our goal of building only the second new producing gold mine in Egypt in more than 90 years,” says Aton Resources president and CEO Mark Campbell.

“Thanks to the forward thinking of EMRA, the 2-year extension to our exploration licence they are granting allows Aton to continue carrying out the critical exploration that will lead to the potential development of the rest of the Abu Marawat Concession.

“We believe that this will enable Aton sufficient time to evaluate the potential to develop other gold deposits in the concession area, which we are currently exploring, and to increase the overall production from the concession in the longer term.

“This will not only greatly impact our local region and the new Golden Triangle Authority, but will lead to increased employment and training, and will positively affect the overall economy of Upper Egypt.

“To echo what the Minister of Petroleum and the Chairman of EMRA have recently stated, that the goal is now to encourage investment to build the mining industry here and make it a ‘Pillar of the Egyptian Economy’ and one that competes in the global mining industry. Their granting us this extension is certainly a step in that direction,” he said.

www.atonresources.com