Extract of report"SUB-SAHARA RESOURCES LTDCOMPANY...

Extract of report

"SUB-SAHARA RESOURCES LTD
COMPANY PROFILE
Summary
Sub-Sahara Resources NL (SBS) is an Australian based, diversified exploration
company with assets in Tanzania, Eritrea and Australia. A number of Joint
Ventures have been established which provide SBS with major interests in
exceptionally prospective projects, whilst much of the exploration expenditure is
covered by joint venture partners earning various percentage interests. SBS
have acquired world class gold projects in major gold belts in Tanzania and
copper-zinc-gold targets in Eritrea, with the potential to host both high-grade
VMS-gold deposits and low-grade-bulk tonnage base metal systems.
Key points are:
SBS have acquired various world-class exploration properties in East Africa,
concentrating in Tanzania and Eritrea
A major gold exploration/development project is currently being drilled by
Barrick Exploration Africa Ltd (BEAL) at Nyanzaga, Tanzania. At the Tusker-
Kilimani Zone, BEAL are engaged in an aggressive five-rig infill drilling
campaign to firm up the resources suitable for an estimate conducted under
JORC guidelines.
The results of a recent drilling campaign by BEAL demonstrate that higher
grade parts of the ore body exist which have the potential to significantly
enhance the economics of the project. The drilling has confirmed the existence
of a broad mineralised zone, 50-200m wide, striking north for at least 600m
and open to the south. Significant intersection lengths are often in excess of
200m at grades averaging 1.5 g/t gold, but zones of up to 2.5 g/t to 3.00g/t over
extended lengths have recently been discovered.
At Mabale Hills in the Lake Victoria JV with Currie Rose, SBS completed an
airborne magnetic / radiometric survey. The resultant magnetic anomalies are
coincident with the gold mineralisation at Mwamazengo over a strike length of
3.5km. Significant intersections at Mwamazengo include 32m @ 3.70g/t Au;
59m @ 2.75g/t Au and 12m @ 9.11g/t Au.
At Asmara, Eritrea, Sunridge Gold Corp (Sunridge), served notice on SBS
exercising their option to acquire SBS s interest in the project on a fair market
value basis. A valuation is being independently performed by SRK Consulting
in Johannesburg, SA with results expected in the June quarter. This has the
potential to realise significant value upfront for SBS and would provide SBS
with a major shareholding in Sunridge.
At Zara, Eritrea, significant intersections of 33m @ 4.17g/t Au; 4m @ 34.70g/t Au;
8m @ 6.62g/t Au and 8m @ 11.49g/t Au have initiated an aggressive
exploration campaign.
SBS has total cash reserves (Mar qtr) of $7.3m and an EV of $28.6m (29/5/06)."