In a move to diversify its gold sector, Mauritania has granted five gold exploration licences to Montage Gold, as the country seeks to reduce dependence on a single ageing mine that currently dominates production.
The permits, spanning roughly 2,103 square kilometres in the northern region, were issued following a competitive bidding process and focus on geological areas known for hosting orogenic gold deposits.
Four of the licences fall within the Sfariat shear zone and will be wholly owned by Montage. The fifth, known as Zednes, is part of a partnership with local firm SOCIEX, where the Canadian company is set to acquire an 80% stake pending regulatory approval.
Under the agreement, Montage will finance all exploration activities at Zednes until a mining licence is obtained. At that stage, SOCIEX will have the option to either contribute to development costs or convert its share into a 1% net smelter royalty.
An initial investment of $2 million has been earmarked for exploration in 2026, covering activities such as geological mapping, geophysical studies, and soil sampling. The company also plans to undertake about 15,000 metres of drilling in the fourth quarter.
The arrival of the Canadian firm comes at a pivotal moment for Mauritania’s mining industry, which remains heavily reliant on the Tasiast mine operated by Kinross Gold.
Tasiast contributed approximately 77% of the country’s gold output in 2023 and is a major source of mining revenue. However, the mine is transitioning into a lower-grade phase, raising concerns over future production levels.
After exceeding 620,000 ounces in output in 2024, production declined by around 23% in 2025.
Output is projected to stabilise at about 500,000 ounces in 2026, with a return to previous peak levels unlikely before 2028.
This decline highlights the risks associated with relying heavily on a single large-scale mining operation in an economy with limited industrial diversification.
Guelb Moghrein, the country’s only other industrial mine, primarily produces gold as a by-product of copper extraction.
Despite current challenges, Mauritania is believed to have significant untapped gold potential. Government estimates place total reserves at over 25 million ounces, indicating strong prospects for future discoveries amid sustained global demand.
Nonetheless, bringing new mines into production is a lengthy process, often taking a decade or more from exploration to operation, meaning Tasiast is expected to remain dominant in the short term.
Artisanal and small-scale mining has helped offset part of the shortfall, producing 14.7 tonnes of gold between 2020 and August 2024, supported by efforts to formalise the sector.
However, regulatory gaps remain a concern. A 2024 report by SWISSAID estimated that nearly 30 tonnes of gold were smuggled out of Mauritania between 2016 and 2022.
Montage’s entry reflects increasing foreign investor interest in Mauritania’s underexplored gold industry, even as the country navigates the limitations of its current production capacity.