Friday 25th January, 2008ASX AnnouncementSub Sahara encouraged...

Friday 25th January, 2008
ASX Announcement
Sub Sahara encouraged by further high drill intercepts from Zara Gold
Project in Eritrea
Australian gold exploration company Sub Sahara Resources (ASX: SBS) announces an
update on its resource drilling program at the Koka prospect, part of the Zara Project, in
Eritrea, Africa (Figure 1).
The company has just received assay results from diamond drilling (ZARD85-ZARD096)
completed last year, which have returned additional significant high grade gold
intercepts such as 6m @ 89.62g/t; 4m @ 20.55g/t and 3m @ 34.98g/t.
Drilling Highlights:
The mineralisation at the Koka Prospect (Figure 2) has been defined on a 20 metre x 40
metre basis and extends for over 600 metres and remains open along strike. Drill holes
ZARD085-96 were infill drill holes from within the 40mx20m grid and were collared in the
footwall rocks (Figure 3).
Hole From
(m)
To
(m)
Interval
(m)
Gold
(g/t)
ZARD085 10 14 4 20.55
37 47 10 6.45
70 73 3 11.30
ZARD086 141 145 4 5.50
ZARD088 17 22 5 7.75
52 58 6 89.62
ZARD089 18 20 2 13.81
36 39 3 5.88
78 80 2 7.84
ZARD091 22.5 29 6.5 7.81
ZARD092 10 12 2 36.34
29 30 1.00 24.18
ZARD094 43 44 1.00 23.15
ZARD095 0 5.5 5.5 3.02
8.5 11.5 3.00 34.98
2
Commenting on these further encouraging results, Sub Sahara Managing Director Mike
Griffiths said:
“This latest batch of drill results has added additional confidence to our gold resource
and although these results will not be incorporated in the resource update expected in
February, we consider these latest results significant as they clearly indicate the nature
of the high grade mineralisation anticipated in the deposit.
”The strong results received to-date from our exploration drilling of the Zara project
coupled with the news late last year that the Eritrean government approved its first
mining application, are all tangible signs that point to Eritrea becoming a gold producer
in the near future. We are therefore very confident this project will eventually achieve the
board’s long term objective of reaching production.”
Table 1: Significant Koka Prospect Diamond Drill Assay Intercepts:
Hole Depth
(m)
North
(UTM)
East
(UTM)
Azimuth
(°)
Dip
(°)
From
(m)
To
(m)
Interval
(m)
Gold
(g/t)
ZARD085 129.00 1,824,310 390,255 102 -50 10 14 4 20.55
21 23 2 8.69
37 47 10 6.45
53 54 1 4.06
70 73 3 11.30
ZARD086 247.50 1,824,449 390158 102 -52 141 145 4 5.50
177 180 3 1.90
ZARD088 105.00 1,824,229 390,240 102 -50 9 12 3 1.31
17 22 5 7.75
33 34 1 4.55
41 42 1 4.55
52 58 6 89.62
81 83 2 2.66
88 89 1 16.01
ZARD089 117.50 1,824,266 390,244 102 -50 14 15 1 4.24
18 20 2 13.81
24 25 1 3.17
36 39 3 5.88
45 46 1 3.77
56 57 1 11.33
78 80 2 7.84
86 87 1 2.36
92 93 1 2.90
ZARD090 17.00 1,824,386 390,268 102 -50 0 3 3 1.38
ZARD091 30.00 1,824,384 390,272 102 -50 22.5 29 6.5 7.81
ZARD092 129.60 1,824,347 390,268 102 -50 10 12 2 36.34
29 30 1.00 24.18
ZARD094 90.60 1,824,381 390,287 102 -50 43 44 1.00 23.15
ZARD095 122.75 1,824,384 390,265 102 -50 0 5.5 5.5 3.02
8.5 11.5 3.00 34.98
41 42 1.00 7.5
3
Note: The metres quoted are down hole metres and gold grades are uncut with up to 2 metres of internal
dilution (<0.25g/t gold). All samples are prepared at the Africa Horn Laboratory in Asmara, Eritrea and
then analysed by Genalysis Laboratories in Perth, Western Australia.
There were no assays >1.00g/t in drill hole ZARD087. Drill hole ZARD093 and
ZARD096 were abandoned due to excessive deviations and were not sampled. Drill
holes ZARD90 and ZARD091, (collared at the same location) were abandoned due to
poor ground conditions and were successfully re-drilled as ZARD095.
Further drill results will be released as they are received by the company.
About the Zara Gold Project
The Zara Joint Venture comprises a single license covering an area of 196km2 situated
in northern Eritrea, approximately 160km northwest of Asmara city (Figure 1). Sub-
Sahara has earned a 69% interest in the project. The Koka Gold deposit within the
project contains an inferred resource of 760,000 ozs gold from 7million tonnes of ore,
grading 3.4g/t gold, and current drilling continues to expand and enhance this resource.
Initial metallurgical test work indicates +95% recovery after 24 hours gravity/cyanidation.
On application for a mining license, the Eritrean Government is entitled to a 10% free
carried interest. Furthermore, the Government has the right, by agreement, to a 30%
equity participation interest in any mining project and up to a 5% royalty on mined
precious metals.
For and on behalf of
Sub-Sahara Resources NL
Web site: www.subsahara.com.au
M.R. Griffiths
Managing Director
About Sub-Sahara
Sub-Sahara Resources is an ASX listed company (ASX: SBS) with interests in a
number of highly prospective and rapidly expanding African projects, including the
Nyanzaga joint venture with Barrick Gold, Lake Victoria joint venture with Currie Rose
Resources and the Nyakufuru joint venture with Resolute Mining (all in Tanzania) and
the Zara joint venture in Eritrea.
FOR FURTHER INFORMATION:
Michael Griffiths, Managing Director
Sub-Sahara Resources
[email protected]
Ph: +61 8 9227 3260
Jill Thomas
Professional Public Relations (WA)
[email protected]
Ph: +61 8 9388 0944
Competent person statement
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is
based on information compiled by Mr M R Griffiths, who is a Member of The Australasian Institute of
Mining and Metallurgy. Mr Griffiths is a full-time employee of Sub-Sahara Resources NL. Mr Griffiths has
4
sufficient experience which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in
the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves’. Mr Griffiths consents to the inclusion in the report of the matters based on his information
in the form and context in which it appears.
Figure 1: Zara Project Location Map
5
Figure 2: Koka Drill Hole Location Plan
6
Figure 3: Koka Cross-Section -