Exploring New Frontiers
London 25 April 2019 - Sumo Resources Plc Business Update
It is with pleasure that we provide an update of the business activities of Sumo Resources over the past months.
SR Tanmin Maniema,DRC Exploration Operations
Maniema Province is well known for deposits of Gold, Tantalite, Tin and Wolframite.
The Environmental Rehabilitation Plans for one the seven Maniema concessions, PR 13340, have been approved. For six others supplemental information were requested and submitted.
We are proceeding with the development of desk studies which are off-site geological surveys aimed at identifying targets in each concession for next level of exploration. Specific focus is given to PR 13337 in the Kabambare territory as it has a high probability for a positive exploration result for gold.
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. Subsequently supplemental information was requested and provided in written form. The approval is pending.
In the interim we are developing the desk study for this concession, PR 13335, as a priority. It has a high probability for a positive exploration result for tantalum.
SR Tanmin Maniema Trading Operations
The company’s subsidiary SR Tanmin was granted a Gold Trading License and a Tantalum Trading license.
The trade in these minerals in Maniema has proven not to be as profitable as expected. The main contributing factors are the lack of constant supply and adherence to contractual agreements by local producers and co-operatives. We have decided to adjust our group trading strategy. More information regarding this is provided in the section below.
Development Plans for the next two years
The plans for the development of the company over the next two years include:
Establish a central operations office in Rwanda in the coming months from where trading and exploration activities will be coordinated.
Commence Tantalum ore (Tantalite, Coltan) trading from Rwanda.
Complete Desk Studies on all exploration permit areas.
Complete trenching and pitting exploration work on PR 13335(Nyunzu, Tanganyika) and PR 13337(Kabambare, Maniema).
Commence trenching and pitting exploration work on PRs 13333, 13334, 13336, 13338, 13339 and 13340. All in Maniema, DRC.
Move the listing of Sumo Resources Plc to a more liquid platform to achieve a realistic valuation for shareholders.
The company is actively looking for ways to fund to execute its development plans. The current share price, which represents a huge under valuation of the company, is an obstacle. There are options available, but they are not viable until the share price is stabilized at a much higher level. The board is considering options to address this.
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The outlook for the business remains positive.