Steadright Critical Minerals Inc. has signed a Memorandum of Understanding with Ste Commerciale et Minière du Sahara to potentially acquire up to 100% ownership of the historic Goundafa polymetallic mine in Morocco's High Atlas Mountains. The agreement covers Concession Number 55, spanning 1,600 hectares with a fully permitted Mining and Environmental Production License in the Goundafa area of South Central Morocco.
The Goundafa Mine represents significant potential for critical mineral production at a time when global demand for copper and zinc continues to escalate. Both metals are classified as critical and strategic minerals in the United States, Canada, Europe, and numerous other countries worldwide. This acquisition comes amid growing supply chain disruptions and rising raw material costs affecting multiple industries.
Historical production data from the mine, which operated from 1926 until 1956, indicates substantial mineralization. In 1928 alone, the mine produced two thousand tons averaging 22.13% zinc and 11.31% lead. A 1985 report from Morocco's former national mining agency, Bureau de Recherches et de Participations Minières, documented silver grades reaching 400g/t from high-grade galena zones, with increasing chalcopyrite and gold content observed at deeper levels. Total historical production reached 320,000 tons of material extracted before operations ceased due to political changes following Moroccan independence.
A 2022 geological report authored by Omar Guillou and prepared for CMS identifies conceptual resources up to 6.62 million tons with grades of 2.1% zinc, 1.8% lead, 1.5-2.1% copper, and up to 3.5 g/t gold in select zones. The report, available at https://www.newmediawire.com, notes that 1.7 million tons are directly accessible through historic multi-level mine works. Recent XRF-measured grades inside the mine show strong potential for significantly higher metal grades in some areas, consistent with historic mining patterns.
The technical assessment indicates substantial untapped potential beyond current estimates. The 2022 CMS report states that current estimates are limited to 600 vertical meters through accessible workings, while geological projections suggest the system could extend an additional 800 meters vertically, reaching depths of 1,400 meters below surface. Additionally, lateral extensions of Veins IV, V, and VI identified at surface through trenching and geological surveys show structural continuity with veins exploited at depth, representing significant additional potential not included in the main volumetric estimate.
Steadright CEO Matt Lewis emphasized the compelling nature of the historic mine works and Morocco's status as a mining-friendly jurisdiction. The company's geological team is conducting due diligence on extensive historical information, with the fully permitted historic mining operation offering strategic positioning in the global race to access and secure critical minerals.
The MOU terms include a three-month due diligence period for Steadright, with an $8,000,000 USD payment for the Mineral License approved for Mining Production Operations, along with shares not exceeding 9% of the company's outstanding shares and a 1% Net Smelter Royalty. A $500,000 USD non-refundable deposit is required within the three-month MOU period.
While the historical estimates demonstrate significant polymetallic mineralization, the company acknowledges these estimates do not meet NI 43-101 standards and require verification through modern exploration methods. The convergence of multiple mineralized veins, historical production data, and surface geochemical anomalies across multiple veins suggests meaningful upside potential for resource development in a region with favorable geology and accessible infrastructure.
