DGAP-News: Sumo Resources PLC: Business Update - 09 July 2018

It is with pleasure that we provide an update of the business activities of Sumo Resources over the past months.

SR Tanmin Maniema Exploration Operations

 

Maniema Province is well known for deposits of Gold, Tantalite, Tin and Wolframite. 

 

The Environmental Rehabilitation Plans for the seven Maniema concessions have been submitted. As of this writing we have not received formal approval but expect that it will happen in the next month or two. 

 

In the interim we have started developing geological surveys aimed at identifying targets in each concession for next level of exploration.

 

SR Tanmin Tanganyika Exploration Operations

 

Tanganyika Province in the DRC is known for deposits of Tantalite and Tin.  

 

The Environmental Rehabilitation Plans for the Tanganyika concession was submitted. As of this writing we have not received formal approval but expect that it will happen in the next month or two. 

 

In the interim we have also started developing geological surveys aimed at identifying targets in this concession for next level of exploration.

 

SR Tanmin Maniema Trading Operations

 

The company's subsidiary SR Tanmin was granted a Gold Trading License and a Tantalite Treatment and Trading license for the Maniema Province in the Democratic Republic of Congo. The licenses enable SR Tanmin to source Gold and Tantalite from artisanal miners, co-operatives, local sellers and mines. The end product may be exported by SR Tanmin to its international trade partners.

 

The supply of Gold to our trading facility in Kindu has been erratic. There are many factors relating to artisanal mining that influence production including periods of heavy rain when there is too much water and times of little rain when there is not enough water. Nevertheless we are optimistic that this will improve and continue to make a contribution to revenues.

 

As per the previous update the vetting of the Tantalite treatment and trading business by the iTSCi is still ongoing. As recently as last week we received further questions from the auditing company, which were the first questions asked this year. The iTSCi is a non-profit organization that assists companies to track the origin of product through the supply chain from the mines to the end product.  Tagging of Tantalite is mandated by the DRC government before it can be exported. 

 

Staff Developments

 

The company dismissed Mr Elie Masala as an employee of the company in any capacity. Mr. Elie Masala is an associate of SR Tanmin and was part of the establishment of SR Tanmin.

 

The reason for the dismissal was that the company found that Mr. Elie Masala was running a parallel structure in Kindu for gold trading and exploitation. In addition to this he also diverted funds intended to purchase gold to his own operations.

 

Criminal charges have been filed against Mr. Elie Masala for theft and other legal actions initiated to terminate any association to SR Tanmin.

 

In his absence the directors have taken full control of SR Tanmin and acquired the services of local residents to fulfill the tasks he was responsible for and stabilized operations in Kindu.

 

Funding

 

The company is actively looking for ways to fund planned exploration and leverage assets. There are a couple of plans in development and updates will be provided in due course.

 

Summary

 

In summary we can say that solid progress is being made on all fronts although we would off course prefer things to move faster. The outlook for the business remains positive.

 

Contact:
[email protected]