nyanzaga gold project resource estimate

Tuesday, 5th September 2006
ASX Companies Announcements
Release via ASX Online
Nyanzaga Gold Project - Resource Estimate
123.27 million tonnes at 1.15g/t Au for
4.54 million ounces of gold
Sub-Sahara has completed its resource estimate of the Tusker Gold deposit in
Tanzania. The Tusker Gold deposit forms part of the Nyanzaga Joint Venture
with Barrick East Africa Limited (BEAL) - a subsidiary of Barrick Gold Corp..
The independent JORC compliant report has been prepared by Cube Consulting
Pty Ltd (Cube). It is a geologically constrained resource estimate using Ordinary
Kriging.
The total estimated resources of 123.27 million tonnes at 1.15g/t Au
for 4.54 million ounces of gold consists of:
• Indicated resources – 89.56 million tonnes at 1.20g/t Au for
3.46 million ounces of gold; and
• Inferred resources – 33.71 million tonnes at 1.00g/t Au for 1.08
million ounces of gold.
Sub-Sahara currently holds a 44.59% interest in the entire project and will hold a
27% contributing interest on completion of a bankable feasibility study. BEAL, the
project operators currently hold a 46.41% interest in the project. Under the terms
of the joint venture, BEAL have the right to earn 63% of the project by funding
and completing a bankable feasibility study (BFS). The balance of the project
(9%) is held by a private Tanzanian company.
The resource estimate of the Tusker gold deposit is based on drilling completed
by BEAL up to July 31, 2006. BEAL has completed additional drilling on of the
deposit since that time, but this drilling is not expected to significantly increase
the resource.
ACN: 061 104 158
288 Stirling Street, Perth
Western Australia 6000
PO Box 8260
Perth Business Centre
Western Australia 6849
Telephone (+61 8) 9227 3260
Facsimile (+61 8) 9227 3271
Email: [email protected]
Web: ww.subsahara.com.au
Sub-Sahara Resources NL
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Cube Consulting Pty Ltd is a Perth based, independent consulting company
specialising in geological consulting services including geological modelling,
resources estimation, mine planning and IT services. Cube was commissioned
exclusively by Sub-Sahara to prepare the independent resource estimate so it
could make its own assessment of the future value of the project and to be able
to inform shareholders of the potential of Tusker gold project. BEAL in any
internal estimate of the Tusker Gold project resources may use different
methodologies/criteria and economics specific to its own requirements and
policies. Accordingly any assessment of the Tusker Gold project conducted by
BEAL may not necessarily arrive at the same conclusions determined by Cube.
The Cube estimate is based on a geological interpretation with approximately
15,000 density measurements from over 17,000 drill samples. Statistical analysis
has applied an upper cut of 10g/t gold and Cube has determined that, a lower cut
of 0.4 g/t gold should apply. Cube has used a US$1,000 per ounce gold price as
a guide to determining the maximum depth of classified resources.
Table 1: Tusker Global Resource above 0.4 g/t Gold.
Category Volume Tonnes Gold g/t Metal (oz)
Indicated 30,920,000 89,560,000 1.20 3,455,000
Inferred 11,640,000 33,710,000 1.00 1,080,000
TOTAL 42,560,000 123,270,000 1.15 4,540,000
# From Cube Report dated July 2006
Michael Griffiths, Sub-Sahara CEO said “This is a very significant event for Sub-
Sahara. The Company has been actively exploring in Tanzania for over 10 years
and this result has certainly reaffirmed our belief that Tanzania has enormous
potential to yield significant mineral resources. Nyanzaga has proven to be a big
mineralised system and we believe that further resources will be discovered to
add to the current Tusker resource.”
For and on behalf of
Sub-Sahara Resources NL
M.R. Griffiths
CEO - Director
For further information please e-mail Michael Griffiths
([email protected] ) or contact by phone on 61-8-9227 3260
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The information in this report that relates to Mineral Resources is based on a resource estimate
compiled by Ms Jillian Irvin, who is a Member of Australian Institute Geoscientists. The work was
completed under the supervision of Mr Patrick (Rick) Adams who is a Member of the Australian
Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Mr
Adams is a Director of Cube Consulting. Ms Irvin is a full-time employee of Cube Consulting Pty
Ltd. Ms Irvin has sufficient experience which is relevant to gold mineralisation and resource
estimation 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’. Ms Irvin
consents to the inclusion in this report of the information, in the form and context in which it
appears.