Just over two years ago, the Australian mining company Ellipsis Mining established its bases in Morocco, in the commune of Tichla, located in the province of Aousserd, in the heart of the Dakhla-Oued Ed Dahab region, close to the border with Mauritania. Its aim: to explore the wealth of iron and gold hidden in the Saharan subsoil.

The Moroccan Sahara is presented as « a vast expanse of land rich in mineral potential and untapped resources« . Describing the region as « a blank canvas, as devoid of commercial geological endeavor as it appears at first glance« , Ellipsis Mining highlights « a unique geological composition« , promising remarkable opportunities for mineral exploration and exploitation.

Two years after it began exploring, Australian mining company Ellipsis Mining has identified promising iron and gold deposits in the Moroccan Sahara, near the Mauritanian border. Anticipating this potential, the company had already set up its subsidiary… pic.twitter.com/ujGeY8Wcib

– TelQuel (@TelQuelOfficiel) December 18, 2024

The Australians’ conviction is based in particular on Tichla’s geographical proximity to large-scale mining operations in Mauritania. To the west, the Tasiast gold mine, operated by Canadian company Kinross Gold Corporation, is one of the largest gold mines in Africa.

Further east, in Zouerate, lies the iron mine of Société Nationale Industrielle et Minière (SNIM), a Mauritanian state-owned company that ranks among the continent’s largest iron producers. « The success of these cross-border operations suggests a strong potential for mineral deposits within the Moroccan Sahara« , emphasizes Ellipsis Mining.

And indeed, after two years of exploration, Ellipsis Mining has discovered some promising deposits, including one gold and another iron ore. At the same time, the company has identified 21 gold targets in Mauritania, close to the Moroccan border.

Samples taken there reveal high surface grades, ranging from 6 to 8 grams per tonne, and estimates suggest a potential of 20 to 25 million ounces of gold.

These results, which testify to the quality of Mauritania’s gold deposits, reinforce the hypothesis that similar deposits are present in the subsoil of the Moroccan Sahara, thanks to the geological continuity of this cross-border region. « The mineral structures present in Mauritania extend right into Morocco, giving us valuable geological knowledge from one region to the next« , notes Ellipsis Mining.

A Moroccan subsidiary of Ellipsis

Confident in its future in Morocco, Australian company Ellipsis Mining, which is considering an initial public offering (IPO) on the Australian Securities Exchange (ASX) after completing its drilling programs in the next six months, has established its first Moroccan subsidiary, a mandatory requirement for exploring Moroccan soils. Called Ellipsis Resources, this limited liability company (SARL) was registered with the Dakhla court on February 21, 2023, according to sources consulted by TelQuel.

This Moroccan subsidiary is active in the fields of prospecting and mining, quarrying, trading in mineral resources, as well as the exploitation and licensing of patents, processes and trademarks. It is also involved in direct or indirect participation in any mining-related operation, according to the same sources.

At its inception, Ellipsis Resources was placed under the management of Bakr Khudeira, as sole managing director. Exploration Director of Ellipsis Mining, Bakr Khudeira is a prominent figure in the Moroccan mining sector. He sits on the boards of several companies operating in the country, including Atlas Managem, which operates in the Ouarzazate region. He is also Managing Director of Arabian Minerals, a company operating in the same sector and active in the Marrakech region.

But in March 2023, Bakr Khudeira was appointed managing director of Summit Minerals, a company owned by Frenchman Stephen Michael Ross, also CEO of Australian company Power Minerals. Following his appointment as head of Summit Minerals, the geologist resigned as manager of Ellipsis Resources. He also sold part of his stake in the company, while retaining a place on the board.

The management of Ellipsis Resources was then entrusted to Mohamed Riyad El Ghallaoui, also a member of the top management of several companies, including Anna Mining, BMAS Investment, Société Feranegoce Sud and Hayat Water.

Written by Younes Saoury. Edited in English by S.E.