Rakai Resources has two distinct differences when compared to typical junior exploration companies – the first is our social compact with the Artisanal and Small-Scale Mining (ASM) community; and the second, a technically-focused difference, is Rakai’s decision to focus on small-scale gold mining to fund our traditional large-scale exploration programs.
Most junior companies use shareholder capital to fund exploration programs that search for large-scale mineral deposits. Such large-scale mineral deposits can then be sold (typically at great profit) to larger mining companies for further development and production. As Rakai’s social compact requires close co-operation with the local mining community, Rakai will develop a small-scale gold mining operation as a priority, and then use funds generated from this program to accelerate efforts to explore for large-scale deposit for sale or joint venture to a major mining company.
Where we are
After extensive review of the existing literature on the region and a fulsome analysis of the geo data produced during an airborne survey (Rad/Mag) commissioned by the Ugandan government in 2010, Rakai’s geological team decided to focus on the region of Karamoja for its perceived mineral potential and the availability of greenfield opportunities. Through the analysis of the available academic and geological literature, Rakai identified a number of potential high-potential zones
in the area in and around the Abim region. Artisanal operations were reported to be producing significant quantities of alluvial gold in the region, and Rakai’s goal of developing near-term production could be explored. With an ultimate goal of combining both short-term production and longer term exploration with the immediate engagement with local ASM communities, Rakai quickly took advantage of the opportunity to stake properties and look at a number of potential joint- ventures for consideration in the region.
Projects and Scope
Rakai holds 4 exploration licenses, centered in the Abim District of the Karamoja region in northern Uganda. These licenses cover a total of 1,125 square kilometers. Rakai has also entered into a joint-venture agreement to acquire 3 additional exploration licenses in the same area covering 608 square kilometers. The total land package is contiguous and covers 1,733 square kilometers, prospective for gold and potentially other minerals.
Rakai confirmed that there are a number of areas within and near our licences where informal artisanal mining for gold has been a viable income-generating activity over multiple generations. A stream-sediment survey indicated that many of the watercourses in the central, north and north eastern areas of Rakai’s Exploration Licence 1189 have gold in their sediments. However, the most exciting discovery was the presence of visible native gold in-situ within pegmatic dykes of golden muscovite in the same area, indicating a potential source for the alluvial gold that has been recovered by the local artisanal miners.