Sub-Sahara delivers 1.04 million oz gold at the Koka Deposit in Eritrea with scope for expansion Koka Resource Highlights: • Resource increased to 1.04 million ounces of Gold from 5.13 million tonnes at an average grade of 6.31g/t Au at a cutoff of 1.5 g/t. • This is an increase of 250,000 ounces of gold to previous resource • Considering selective mining scenarios, the grade of the deposit has increased to 6.31g/t while tonnage has decreased. • Mineralisation still open at depth and along strike, with a number of additional high priority targets still to be tested • Additional infill diamond drilling results since October 2007 are yet to be included in resources estimate Australian exploration company Sub-Sahara Resources (ASX: SBS) 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 Limited (DRA) 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.
Capital raising may be on the cards - but you have AVM with a large interest and loads of cash, so it may not happen for a while. However AVM need to see how things pan out with the DRC review to know where they stand. I think they will be very keen to get a mine going outside of the DRC after all this B.S with the DRC review.
Cheers all
SBS Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held