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Posts tagged ‘eritrea’

The golden Horn of Africa

March 7th, 2013

Sunridge, Nevsun, Chalice drill Eritrean gold, copper, zinc, silver

by Greg Klein

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While continuing the Asmara feasibility study in Eritrea, Sunridge Gold TSXV:SGC announced on March 7 a new near-surface discovery at Kodadu, four kilometres east of Asmara’s Debarwa deposit. With assays complete on 21 reverse-circulation holes, the company now plans an initial resource estimate for the potential deposit.

True widths for the two zones were estimated at about 70%. Some highlights from the gossan zone include:

Sunridge, Nevsun, Chalice drill gold, copper, zinc, silver in Eritrea

Gossan outcrops helped draw Sunridge Gold’s attention
to the Kodadu zones near its Asmara project in Eritrea.

  • 1.71 grams per tonne gold over 51 metres
  • 1.77 g/t over 31 metres
  • 1.66 g/t over 22 metres
  • 1.06 g/t over 32 metres
  • 1.08 g/t over 27 metres
  • 1.05 g/t over 20 metres
  • 1.18 g/t over 17 metres.

The top-most intercepts started at surface while the deepest stopped at a down-hole depth of 51 metres.

Some shear zone highlights include:

  • 1.15 g/t over 33 metres
  • 2.3 g/t over 16 metres
  • 0.99 g/t over 21 metres
  • 0.64 g/t over 15 metres
  • 0.81 g/t over 11 metres
  • 1.19 g/t over 1 metre.

Again, the top-most interval began at surface. The deepest ended at 79 metres down hole.

The company now wants to “rapidly define a resource that could be mined as feed” to a processing facility near Asmara’s Emba Derho copper-zinc-gold-silver deposit, 25 kilometres away, which would also serve three nearby satellite deposits. Three of Asmara’s four deposits would be open pit operations. The fourth, Adi Nefas, would go underground.

Asmara’s feasibility study is slated for Q2 release and already the company is forecasting improvements to last May’s pre-feas. Using a 10% discount rate, that study projected a pre-tax net present value of $555 million and a 27% internal rate of return. With initial capital costs then estimated at $489 million, payback would have come in 3.5 years, while the life of mine would last 15.25 years.

Now Sunridge is considering a staged start-up to cut capex and get to the ore earlier. Mining would begin with copper, gold and silver from Debarwa’s supergene (higher-grade) zone. Work would progress with heap leach gold production at the Emba Derho plant, processing ore from the Debarwa and Gupo deposits as well as Emba Derho. The next stage would involve mining and processing the remaining copper supergene ore from Debarwa and Emba Derho. With full production in year three, Asmara would produce an estimated annual average of 70 million pounds (31,750 tonnes) copper, 140 million pounds (63,500 tonnes) zinc, 31,000 ounces gold and 997,000 ounces silver over the mine’s first eight years.

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Quarterly records

October 9th, 2012

Gold producers with higher ounces for Q3

by Greg Klein

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With third quarter results rolling in, some miners are competing with each other to announce record-high gold ounces for their companies. Here’s a look at five companies that released Q3 production numbers on October 9.

Q3 marked a record 32,137 gold ounces for Avion Gold’s TSX:AVR Tabakoto open-pit and underground operation in Mali. That’s an increase from 28,640 ounces in Q2 and the third consecutive quarterly record. The company now expects to exceed its 2012 guidance of 95,000 to 102,000 ounces. Avion produced 91,200 ounces in 2011.

Gold producers with higher ounces for Q3

Liquid gold pours from Nevsun Resources’ Bisha Mine, which produced 98,000 ounces in Q3 2012.

Avion holds an 80% interest in Tabakoto. The company emphasizes that its southern Mali operation had uninterrupted production despite the sectarian violence centred in the country’s north following a March 22 military coup.

The company closed October 9 at $0.88, two cents above the day’s opening price. With a market cap of $390.71 million, Avion’s 52-week high and low are $2.31 and $0.41.

Another Q3 record-setter, St Andrew Goldfields TSX:SAS reported 25,742 gold ounces from three mines in Ontario’s Timmins Mining District. The Q2 total was 23,106 ounces. Q3’s breakdown comes to 13,147 ounces from the Holt underground mine, 5,408 ounces from the Holloway underground mine and 7,187 ounces from the Hislop open pit. All three share the Holt Mill.

Last month the company re-filed documents on Sedar to correct an overstatement of the inferred category for Holt and Holloway. The corrected estimate for Holt shows 1.09 million ounces measured and indicated, and 229,000 ounces inferred. The measured and indicated numbers include proven and probable reserves of 415,000 ounces. Holloway’s corrected estimate shows 110,000 ounces measured and indicated, and 452,000 inferred. M&I includes proven and probable reserves of 31,000 ounces. These figures correct an overstatement of 665,000 inferred ounces for Holt and 44,000 inferred ounces for Holloway.

Nevertheless the company maintains it’s on track to meet 2012 guidance totalling between 90,000 and 100,000 ounces for all three mines.

St Andrew opened October 9 at $0.47 and closed on $0.465. SAS has a market cap of $171.23 million, a 52-week high of $0.65 and a low of $0.305.

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Nevsun reports $39.6M 2Q Net Income, $0.19 per Share

August 10th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningNevsun Resources Ltd TSX:NSU reported $39.6 million 2Q net income, $0.19 per share, on revenues of $147.7 million (all figures in US dollars). This compares to 2Q 2011 net income of $35.3 million, $0.18 per share, on revenues of $136.1 million. Net income for the first six months of 2012 was $80.8 million, $0.40 per share, on revenues of $297.1 million. This compares to the equivalent period in 2011 of $47.1 million net income, $0.24 per share, on revenues of $190.4 million. Cash and equivalents were $369.4 million on June 30, compared to $347.6 million on December 31, 2011.

Nevsun mined 500,000 tonnes grading 6.04 grams per tonne gold for production of 87,000 ounces of gold at $253 per ounce in 2Q. Six-month production was 169,000 ounces at $265 per ounces. This compares to 2Q 2011 production of 93,000 ounces at $305 per ounce and production for the first six months of 2011 of 168,000 ounces at $304 per ounce. Gold production guidance for 2012 has increased from 240,000 to 260,000 ounces to 280,000 to 300,000 ounces.

Nevsun operates in Eritrea in northeast Africa. Its main project is its gold-silver-copper-zinc Bisha mine. Its other properties are the Mogoraib-Hambok copper-zinc-gold-silver project and the North West Zone (gold-silver-copper-zinc), located 1.2 kilometres from Bisha. The company has completed a 13,500-meter drill program at the North West Zone and expects a resource estimate in the first half of 2013.

View Company Profile

Kin Communications
604.684.6730

by Kevin Michael Grace

Sunridge Reports 1B lbs Copper, 2.1B lbs Zinc in Eritrea

February 6th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningSunridge Gold Corp TSXV:SGC announced an updated NI 43-101 resource update for the Emba Derho, Adi Nefas and Gupo deposits of its Asmara Project in Eritrea, East Africa. The project is estimated to have measured and indicated resources of 1 billion pounds copper, 2.1 billion pounds zinc, 506,000 ounces gold and 18.6 million ounces silver.

President/CEO Michael Hopley said, “This new resource estimate exceeds expectations; Emba Derho now contains 1 billion pounds of copper and over 2 billion pounds of zinc along with significant amounts of gold and silver in the measured and indicated resource categories. Because of the exceptionally clean metallurgy and amenable shape of the deposit for open-pit mining, we expect that most of these resources will be converted to reserves with the completion of the pre-feasibility study in April.”

View Company Profile

Contact:
Greg Davis
VP Business Development
604.688.1263

by Ted Niles

Chalice, Zara report Eritrea Gold Results up to 39.25 g/t over 3m

December 23rd, 2011

Resource Clips - essential news on junior gold mining and junior silver miningChalice Gold Mines Ltd TSX:CXN and Zara Mining Share Company announced assays from the Koka South discovery adjacent to their Zara Gold Project in Eritrea. Results include

39.25 g/t gold over 3 metres
(including 115.33 g/t over 1 metre)
21.38 g/t over 5 metres
9.73 g/t over 7 metres
(including 49.64 g/t over 1 metre)
6.06 g/t over 5 metres

The project is a joint venture under Zara Mining SC, the operating company. Under the agreement, the Eritrean National Mining Corp will pay Chalice US$32 million for a 30% interest. ENAMCO will also pay Chalice approximately $2 million towards exploration costs on the Zara licences outside the Koka licence. Following completion of the agreement, the Zara Project’s ownership structure will be 60% Chalice, 30% ENAMCO and 10% free carried interest. Chalice and ENAMCO will pay development costs for Koka and exploration costs for the Zara licences on a two-thirds/one-third basis.

Managing Director Doug Jones tells ResourceClips.com, “They’re pretty encouraging results. Koka South is immediately adjacent to the Koka open pit, where we’ve got 760,000 ounces mineable at five grams. It looks like Koka South is a continuation of that system, whereas the Koka Main mineralization tends to be over a width of 15 to 20 metres. It seems to extend down into the Koka South area, but you’re getting significantly higher results, as you can see from these results and the previous results in early November.

The Chinese are already heavily invested in Eritrea. It’s not a surprise that they’re quite keen on acquiring additional assets there. And there’s quite a strong political link between Eritrea and China—Doug Jones

“We’ve got assays from three more holes to come for this season. Holes 236 and 237 look fairly promising because they have visible mineralization, and that does seem to confirm that mineralization continues to the south, at depth. It seems that close to surface at Koka South we’re not seeing the mineralization in the surface geochemistry. There were a couple of holes that had no significant intersections near surface. But certainly the deeper holes have good-looking visible mineralization.

“We’re continuing to expand; 760,000 ounces, even at five grams, is not a big reserve. We’d like to get that over a million ounces. Given that Koka South is so close to the pit, it could be a significant material addition to the Koka operation. It’ll probably be underground, though. I think the strip ratio there would preclude an open pit.

“About two and a half kilometres further south we’ve got the Debre Konate prospect, where we had some pretty interesting results that we released December 15. That’s a pretty exciting prospect too, with very robust soil anomalies. The Debre Tsaeda prospect looks interesting too. So we’ve got a big drill program planned for next year,” Jones says.

Chalice announced December 12 it had signed a non-binding letter of intent proposing terms to sell its 60% share in Zara. Jones acknowledges widespread speculation that a Chinese company was involved. But he declined to elaborate publicly.

“The Chinese are already heavily invested in Eritrea,” he points out. “It’s not a surprise that they’re quite keen on acquiring additional assets there. And there’s quite a strong political link between Eritrea and China.

“The UN sanctions on Eritrea have had a limited effect on exploration and mining so far,” he reports. “It’s been suggested in some circles that the sale of this project results from the sanctions. But it has nothing to do with the sanctions. The press release from Nevsun TSX:NSU [December 6] pointed out that the wording of the sanctions has virtually no impact on the mining industry. I think that it just reinforces aversion in people who are already risk-averse. But I don’t think people who were prepared to fund projects in Eritrea six months ago are going to change their minds because of renewed or extended sanctions. Certainly in terms of our day-to-day activities, it’s not going to affect us at all.

“If the sale goes through, we’ll be looking for a new project,” Jones says. “I think there’ll be a lot of opportunity next year. The way the market is, I think it’s going to be difficult for a lot of juniors to fund their projects. If we have something in the order of $80 million to $100 million, that gives us the ability to leverage it into new projects. We’d be looking for relatively advanced projects.

“We were planning to take Koka into production. We put everything into place except the funding, then this offer came through. We were already transitioning from a purely exploration company towards development with the addition of a couple of mining engineers, and more additions of that sort were planned.

“We’d like to diversify our political risk. Regardless of whether we think Eritrea is a good country to work in, the market has its own view. Along with Nevsun, we’ve been hammered fairly hard through that perception. We’ll certainly look at opportunities inside Eritrea, but we’ll look at others as well, to diversify our political risk.”

Jones concludes, “We’re in an interesting position at the moment. We have a good project which we could take through to production. We’re in the process of being made an offer. If we go through with that, it should leave us with a significant amount of money which will open up a lot of opportunities going into the new year. With the market the way it is, I think a lot of the juniors are going to be starved for funds. So if we have cash in the kitty, we’ll be able to take on some new projects.”

View Company Profile

Contact:
Chalice Gold Mines Ltd
Joanne Jobin
North American IR Manager
647.964.0292

or Tim Goyder
Executive Chairman
or Doug Jones
Managing Director
61.9322.3960

by Greg Klein

Sunridge reports Eritrea Results up to 6.09 g/t Gold over 30m

December 6th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningSunridge Gold Corp TSXV:SGC announced assays from the Gupo Gold Deposit of its Asmara Project in Eritrea. Results include

6.09 g/t gold over 30 metres
6.2 g/t over 19 metres
4.13 g/t over 12 metres
3.66 g/t over 13 metres
5.19 g/t over 7 metres
2.46 g/t over 13 metres
2.79 g/t over 9 metres
1.44 g/t over 16 metres

The Gupo Gold Deposit has an inferred resource estimate of 1.96 million tonnes grading 2.99 g/t gold for 189,000 gold ounces.

View Company Profile

Contact:
Greg Davis
VP of Development
604.688.1263

by Greg Klein

Sunridge reports Eritrea Gold Assays up to 2.38 g/t over 27m

November 4th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningSunridge Gold Corp TSXV:SGC announced results from the Gupo gold deposit of its Asmara project, Eritrea. Assays include

2.38 g/t gold over 27 metres
6.56 g/t over 12 metres (including 18.05 g/t over 4 metres)
2.54 g/t over 14 metres
6.36 g/t over 12 metres
2.35 g/t over 15 metres

The Gupo deposit has NI 43-101 inferred resources of 189,000 ounces gold. The current drill program is designed to upgrade inferred resources to the measured and indicated categories as part of the ongoing prefeasibility study on the Asmara North deposits.

VP of Business Development Greg Davis tells ResourceClips.com, “We released our first batch of assays from the almost-complete 7,000-metre drill program on the Gupo Gold Deposit of the Asmara Project in Eritrea. There’s an inferred resource on the deposit, and this program is designed as part of the prefeasibility study on Asmara North, which includes Gupo, to upgrade the resource to indicated. We did a program last spring; we’re doing another one now; and we also see an opportunity to expand the resource. These are the first 16 holes, and there’ll be more results about every two weeks now.

The prefeas study is on schedule for completion in March. We’ll have full bankable feasibility on Debarwa [at the south end of Asmara], which is now expected for early 2012—Greg Davis

“We’re quite encouraged by the first batch because it’s from the north end of the deposit, and those are fairly significant gold grades and intercepts, and there may be an opportunity to expand the resource to the north as well.

“Most of Asmara remains unexplored.” he adds. “Between 2004 and about 2007, we did a lot of exploration on Asmara for VMS targets, and we had a lot of success, but we haven’t really explored much for VMS targets in the last few years. We’ve been working on advancing our current deposits towards production, so that’s taken up all our resources in terms of cash, drills and personnel. But we’re trying to get back to what we do best—exploration—in January 2012. We’ll get back to exploration drilling on new VMS targets, and we do expect success.

“The updated Gupo resource will come out probably in early January 2012. We’re still drilling right now, but we’re almost complete. The prefeas study is on schedule for completion in March,” Davis says. “We’ll have full bankable feasibility on Debarwa [at the south end of Asmara], which is now expected for early 2012.

“We’ll complete our bankable feasibility and our socio-economic impact assessment report, submit them to the ministry of mines and apply for a mining licence. We expect that review process to take up to six months. Actual construction could begin in 2013.

“I’ve been involved in Eritrea now for nine years,” he points out. “There’s five of us on our team who have previously worked with Nevsun [TSX:NSU], so we’ve got a lot of experience in the country, and everybody loves it. It’s a unique place, and it’s really a pleasure to work there. We’ve got full support from all levels of government and the people. It really is a great place to operate.

“We also drilled a program in Madagascar during the North American summer, and we should have the assays back any day now. That was our first drill program there, so it’s really wait and see.,” Davis says.

View Company Profile

Contact:
Greg Davis
VP Business Development
604.688.1263

by Greg Klein and Ted Niles

Nevsun reports Eritrea Copper Assays as high as 1.13% over 103.8m

November 3rd, 2011

Resource Clips - essential news on junior gold mining and junior silver miningNevsun Resources Ltd TSX:NSU announced drill results from its Bisha Main deposit in Eritrea. Highlights include

0.76% copper and 11.84% zinc over 88.5 metres
0.84% copper and 8.29% zinc over 94.7 metres
0.86% copper and 10.71% zinc over 85.9 metres
1.13% copper and 4.98% zinc over 103.8 metres
1.27% copper and 5.78% zinc over 99.6 metres

CEO Cliff Davis remarked, “Bisha is a world-class VMS deposit that we see evolving into a world-class VMS mining camp. The high-grade zinc and copper intercepts released today are part of an ongoing program to grow organically through drilling known mineralization in and around the Bisha operation.”

View Company Profile

Contact:
Kin Communications
604.684.6730

by Ted Niles

Nevsun reports Eritrea Copper Assays including 8.26% over 37.5m

October 27th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningNevsun Resources Ltd TSX:NSU announced assay results from its Bisha project in Eritrea, East Africa. Highlights include

0.79% copper over 12 metres (including 1.54% over 3 metres)
8.26% over 37.5 metres (including 16.99% over 10.5 metres)
0.58% over 19 metres (including 1.12% over 6.5 metres)
1.29% over 12 metres
0.5% over 66 metres (including 2.28% over 3 metres)

A resource and reserve re-statement for the Bisha Main deposit is expected by 1Q 2012.

View Company Profile

Contact:
Kin Communications
604.684.6730

by Ted Niles

Sunridge reports Eritrea Assays of 3.96 g/t Gold, 116.37 g/t Silver over 16m

September 1st, 2011

Resource Clips - essential news on junior gold mining and junior silver miningSunridge Gold Corp TSXV:SGC announced results from its Asmara Project in Eritrea. Highlights include 3.96 g/t gold, 116.37 g/t silver, 1.97% copper and 10.36% zinc over 16 metres, 1.88 g/t gold, 65.39 g/t silver, 1.23% copper and 13.52% zinc over 26.1 metres, 1.59 g/t gold, 50.87 g/t silver, 0.68% copper and 3.45% zinc over 28.6 metres and 3.25 g/t gold, 111.79 g/t silver, 3.79% copper and 4.04% zinc over 10.8 metres.

VP Business Development Greg Davis tells ResourceClips.com, “Right now a lot of our focus is on the prefeasibility study being conducted on the Asmara North projects. These include Emba Derho, Gupo Gold and Adi Nefas. Adi Nefas was the one we announced today. It’s been some time since we had news on Adi Nefas. The drill program that we recently did there, and announced today, was part of the prefeasibility study. It had several objectives: one was for metallurgical testing, two was for geotechnical work—we drilled where the planned portal is going to be, and also we tested the hanging wall—and three was to see if we could expand it. We put a few holes in to expand it laterally and to depth, and we were successful in that. It’s a nice reminder for people of what a high-quality rock this is. Extremely high value. It will definitely be a significant sweetener in terms of the economics of the ongoing prefeasibility study.

“We’re very happy with these results. They are, once again, incredibly high results, especially if you add up the values of the zinc, gold, copper and silver in the rock.

We’re very happy with these results. They are, once again, incredibly high results, especially if you add up the values of the zinc, gold, copper and silver in the rock—Greg Davis

“In terms of production,” Davis continues, “the lead project is Debarwa which is in the southern part of the project. We’ll be wrapping up a full bankable feasibility there at the end of this year and applying for mining permits early next year. It has a gold-oxide cap where production will start, followed by the DSO zone—super high-grade material, 117,000 tonnes averaging 16% copper, 3 grams per tonne gold and 77 g/t silver. We’ll look at direct shipping that.

“Jumping back to the north: this prefeasibility study on the northern projects will be wrapped up early next year, and it’s our plan to plow right into full bankable feasibility. That won’t be a big step, as the prefeasibility study is fairly extensive. So we expect to complete full bankable feasibility on [Asmara's] northern projects in 3Q or 4Q 2012.

“Probably 80% of the property remains unexplored. We started there in 2003-2004, and we’ve drilled over 200,000 metres. But we’ve had success—we’ve focused on drilling out Debarwa, Adi Nefas, Gupo and Emba Derho. We’ve been pushing those projects ahead, but we also have a lot of exploration to go. We have numerous, high-priority targets. The high-priority targets are defined by gravity anomalies, coincident with EM conductors, coincident with strong zinc, copper and precious metals in the soils. On top of that there’s the gossan outcrop in many cases—they poke out of the ground. It’s the same kind of signature we saw at Bisha back in the early days—Nevsun Resources’ project—and the known deposits on our Asmara Project. So we do expect to make more discoveries.

“The exploration schedule is coming together. We will likely be exploration drilling again in the next month on our project. We’re still formulating exactly how much we want to spend by the end of the year, but it looks like up to $2 million on exploration drilling.

“Sunridge is tremendously undervalued,” Davis concludes. “That’s been a symptom of working in Eritrea. It’s truly a dream to operate in Eritrea, but you’re always fighting the perception in the market. Once again, Nevsun’s now in production—this demonstrates the ease of working in Eritrea. We think there’s definitely going to be a re-evaluation of all companies, including us.”

View Company Profile

Contact:
Greg Davis
VP of Business Development
604.688.1263

by Greg Klein and Ted Niles