Canada’s Aton Resources to Launch Gold Production in Egypt’s Eastern Desert by Late 2026
Canadian mining company Aton Resources is preparing to launch gold production from its Abu Marawat concession in Egypt’s Eastern Desert, targeting output of 10,000 ounces in the fourth quarter of 2026, marking the start of the project’s commercial operations, according to a government official who spoke to Asharq on condition of anonymity.
The official noted that the company plans to gradually ramp up production in the following years, alongside the establishment of an integrated gold processing and extraction plant in Egypt, with estimated investments of around $60 million.
Abu Marawat: Promising Precious Metal Reserves
The Abu Marawat concession is located within the mineral-rich Nubian Shield in Egypt’s Eastern Desert and hosts interwoven deposits of gold and copper, enhancing the potential for developing a fully integrated mining complex.
In July, Aton Resources’ CEO Tuno Vahk stated in an interview with Asharq that gold reserves in the company’s operating area were estimated at around half a million ounces, adding that extraction activities would commence within a year. He also confirmed that the Egyptian government will receive 50% of the profits under the exploration license.
Egypt estimates recoverable reserves at Abu Marawat at approximately 134,900 ounces of gold and 1.4 million ounces of silver.
Egypt Raises Its Mining Ambitions
The government official said Aton Resources is accelerating production plans to secure early cash flows that will support expanded investments in Egypt’s mining sector, particularly in gold and silver, amid geological indicators confirming commercially viable deposits across its Eastern Desert assets.
In January 2024, the company obtained a preliminary 20-year exploitation license covering 57.66 square kilometers, including the Hamama West and Rodruin areas, in addition to an exploration zone spanning 255 square kilometers retained for four more years.
These developments come as part of broader government efforts to boost Egypt’s mining industry and attract global players. Egypt aims to secure $1 billion in new mining investments by 2030, increase gold production to 800,000 ounces annually within six years, and produce 30 million tons of other minerals.