Zodiac Gold

Investor Insight

A large, underexplored land package with potential for district-scale gold deposit makes Zodiac Gold a compelling opportunity amid a positive macroeconomic backdrop for the precious metal sector.

Overview

Zodiac Gold (TSX.V:ZAU) is a gold exploration company focused on its West African flagship Todi project situated in Liberia — an underexplored, politically stable, mining-friendly jurisdiction hosting several large-scale gold deposits. Strategically positioned along the fertile Todi Shear Zone, Zodiac Gold is developing a district-scale gold opportunity covering a vast 2,316 sq km land package. The project has undergone de-risking, showcasing proven gold occurrences at both surface and depth, with five drill-ready targets and high-grade gold intercepts.

Liberia – Stable, Growing and Mining-focused

Liberia is considered a favorable jurisdiction for metals and mining for several reasons: 1) the government has shown a long commitment to developing the mining sector (the mining code is based on Australian legislation), 2) the country has a well-defined regulatory framework (minimal 3 percent royalty rate and a 25 percent basic rate of tax on earnings), and 3) transparent permitting process.

As Africa’s oldest republic, Liberia has had a politically stable democracy since 2003 after signing the Accra Peace Agreement. Additionally, the country has had four successful democratic elections since 2005.

The country is well-endowed with mineral resources that largely remain underexplored. The West African craton hosts numerous world-class deposits with a gold endowment of over 450 Moz. The craton is largely underexplored (~90 percent) with most recent exploration having occurred in the previous 30 years.

Just this year, US iron ore conglomerate High Power Exploration (HPX), founded by mining billionaire Robert Friedland, announced plans to develop the Liberty Corridor – a brand-new multi-user infrastructure corridor connecting Guinea and Liberia.

The Liberty Corridor would comprise a brand-new, world-class rail system connecting the Nimba district of Guinea to a new Liberian deep-water port. The Liberty Corridor is expected to be a leading African example of multi-user, independently operated, and open-access infrastructure that will support the economic opening of the West African region to world markets.

These newly announced Liberian initiatives, coupled with a US-dollar-denominated economy, a majority English speaking population and heavy US presence, makes Liberia a top-tier investment jurisdiction in Africa.