The gold mine which was built to place Nigeria on the list of major gold producing nations, is expected to create about 400 direct and 1,000 indirect jobs by carefully exploring the abundant wealth inherent in the gold value chain.
The Gold Mine tagged “Segilola” is a high-grade gold project being developed in Osun, Nigeria, is expected to hasten Nigeria’s diversification of the economy and reduce unemployment among the youth populace.
Pictures of the gold mine surfaced on social media platform – Twitter, suggesting that the country’s first and largest industrial-scale gold refinery will be completed some months from now, this year.
What you should know
- Nairametrics reported last year that the Minister of Mines and Steel Development, Olamilekan Adegbite disclosed that Nigeria was set to commence gold production in 2021 after the launch of the Segilola Gold Project in Osun state.
- However, Thor Explorations Limited announced that a set of encouraging drill results from its in-pit and extensional diamond core drilling program revealed that the gold mine is on course to pour its first gold in Q2 2021.
- The Segilola Gold Project, is considered Nigeria’s first and most advanced gold project, with an indicated resource of 556,000 ounces grading at 4.2g/t, an inferred resource of 306,000 ounces grading at 4.7g/t and a probable reserve of 448,000 ounces grading at 4.2 g/t.
- The mine is projected to produce 100 000 ozpa in its first operating year and an average of 80 000 ozpa over its current five-year open-pit lifespan – averaging around 4.2 g/t.
- It is expected to play an active role in driving exponential growth in the Mining sector, as investments in the sector begin to crystallize.
- In line with this shift, the Mining sector has been projected to contribute 3.0% of the nation’s GDP by 2025.
Why this matters
The mine is an open letter to the world on Nigeria’s brewing industrial revolution, as the country looks set to tap into its untapped deposits of metals including iron ore, gold, zinc and lead, in a bid to create value, generate wealth and create employment opportunities for the Nigerian youth.
In addition to the aforementioned, the project is expected to create primary employment for local artisanal miners and mining cooperatives across the solid minerals value chain.
In this regard, the Segilola gold mine when completed will prove to the Nigerian government and the international financing community that mining can be a viable proposition in Africa’s largest economy, as the economic potential of mining communities would be unleashed.