USD1.8-MILLION INVESTMENT FOR LIONS BAY RESOURCES
• PROJECTS AND EXPLORATION
Image by Natanaelginting on Freepik
Stating an objective to maintain the current production profile for another three months, a mid-term six-month aim to replace depleted resources and in the longer-term, implementation of a programme of regional reconnaissance drilling to extend the life of mine.
Source: supplied by Galileo Resources
We feel that there are many opportunities within the conventional copper belt
geology to discover small to medium-sized mining propositions to assist tomorrow ' s high demand for copper.
USD1.8-MILLION INVESTMENT FOR LIONS BAY RESOURCES
Location: South Africa Phase: Development Resource: Gold
Lions Bay Resources( LBR) is receiving an investment of up to USD1.8-million to cogenerate a plant located in Karbochem Industrial Park, Newcastle, South Africa, from Metals One.
The critical and precious metals exploration and development company, Metal One, said the investment would be made by way of convertible loan notes( CLN). LBR is a South African private company formed in 2025 to hold partnership assets. Owned by Lions Bay Capital Inc. and by the Salamander Mining management team( Salamander), headed by Graham Briggs.
LBR has secured an option for USD1.36-million, with research and planning having commenced around modifying the plant to produce power and steam while also roasting refractory gold concentrates, common to mines in the region. Both companies have recently conducted due diligence on the plant and have agreed to apply part of the funds from the CLN to exercising the option.
The plant currently has these specifications and associated infrastructure:
• 2 x 30 tonnes per hour( TPH) Thermax combustion boilers
• 6MW GE‐Triveni steam turbine
• The plant is configured to take coal from local dumps and biomass as feedstock
• Boiler house, turbine, control room and motor control centre
• Compressed air plant and electrical sub‐station
• Inclined conveyor to six silos( 1 500m 3 each)
The plant was inspected and verified by Terravista Solutions in October 2025 and ascribed a replacement value of USD39.6-million. Subject to receipt of a competent person ' s report, to be funded from the proceeds of the CLN, it is expected that the plant will require approximately USD4.5-million to restart production of steam and power.
A large chrome smelter operation adjacent to the plant, requiring power and steam, has been engaged and discussions around a mutually beneficial offtake agreement are underway. Pending confirmatory research and studies, LBR plans to reconfigure the plant to include a gold concentrate roasting complex, an alternative solution to exporting gold‐bearing concentrate from South Africa to Asian smelters. This process has the potential to create a further revenue stream by toll processing material from regional mines, while sustaining production of steam and power. At the election of Metals One, part of the proceeds from the CLN will be applied to commissioning a further technical report on the reconfiguration of the plant to include a gold roaster.
The region is host to numerous multi‐million‐ounce gold deposits and tailings resources, the mining of which generates concentrate, all within a 300km radius of the project. In addition to the larger mining complexes, there are several small deposits which are unable to satisfy the high capital requirements of standalone operations that would benefit from a large centralised roasting facility such as LBR ' s.
The near‐term strategy for LBR is to acquire regional gold mining and tailings assets as potential feedstock for the gold roaster. The companies are working together on identifying acquisition opportunities that suit the potential configuration of the plant and gold roaster, some with substantial gold inventory and mining infrastructure.
Metals One has conditionally agreed to subscribe for up to USD1.8- million CLNs in LBR in tranches, subject to the satisfaction of certain conditions in respect of each tranche, as below.
• Metals One is satisfied with legal, financial and technical due diligence on LBR and its assets( including the plant)
• In respect of tranche 1, a technical report confirming the replacement value of the plant, having been issued by a competent person
14 • African Mining • March 2026 www. africanmining. co. za