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.
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 MD 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 196km2 concession.
Coupling today's 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 GoldProject has the potential for commercial development."
SBS Price at posting:
2.1¢ Sentiment: LT Buy Disclosure: Held
