Sub-Sahara delivers 1.04m oz gold at the Koka Deposit

02 March 2008 | 04:44 Code : 16907 Geoscience events
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Exploration Company Sub-Sahara Resources has further defined a “significant...

  Exploration Company Sub-Sahara Resources has further defined a “significant” gold deposit at its Koka Gold deposit in Eritrea, East Africa, with the size of the resource increasing to 1.04 million ounces gold from the previously announced 760,000 ounces gold.The Koka Gold deposit forms part of the Zara Joint Venture with Dragon Mining Ltd and Africa Wide Resources Limited. Sub Sahara holds 69% interest in the project.The Mineral Resource Estimate of the Koka gold deposit is based on drilling completed by Sub-Sahara up to October, 2007. Sub-Sahara has completed additional diamond drilling on the deposit since that time, and this drilling has not been included the resource. The independent resource estimate and report was prepared by Coffey MiningPty Ltd in accordance with the guidelines of the Australasian Code forReporting of Exploration Results, Mineral Resources and Ore Reserves (theJORC Code; 2004) . The Coffey estimate is based on a geological interpretation from 79 diamond drill holes, 1,526 bulk density measurements, and 9,036 drill samples.Core recovery averaged 95%. Based on statistical analysis, a high grade cut of 100g/t Au has been applied to 3 metre downhole composites.Michael Griffiths, Sub-Sahara CEO said this is a stunning result for Sub-Sahara. “Considering a more selective mining scenario, the grade of the Koka deposit has improved to 6.31g/t from 3.4g/t while tonnage has decreased from May 2007. “Moreover, we have added a further 250,000ozs to the total global resource. Infill drilling and extension drilling as well as tighter geological controls have delivered a better defined resource, shifting most of the deposit into the “Indicated” status,” he said.“But there is still a lot of upside to Koka – with the deposit still open at depth and to the south, and we have a number of high priority targets to test within the 196sqkm concession.“Coupling this estimate with our earlier metallurgical results that indicate +95% recovery, as well as the fact that this deposit starts from surface, we are confident that Koka has robust development potential and as such we have commenced planning for the feasibility study.“Given this excellent resource estimate and the fact that the Eritrean Government recently awarded its first mining licence, confirming its commitment to mining and the mining industry, we are very confident that the Koka Gold Project has the potential for commercial development.”

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