october target for zara project prefeasibilit

ASX Announcement
October target for Zara Project Pre-feasibility
Australian gold explorer Sub-Sahara Resources (ASX:SBS) advises that work has resumed at the Zara Gold Project in Eritrea. The current activities are planned to push the +1moz Koka Gold discovery towards development with a Scoping/Pre-feasibility study planned for completion by October 2008.
Work currently under way and planned for the study includes:
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metallurgical drilling
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Geotechnical drilling
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Structural drilling
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Water search and drilling
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Topographic data collection
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Environmental Base Line Study
The Company has engaged Coffey Mining Pty Ltd as advisors for the study and the Company is currently seeking the services of a qualified Project Manager to take the project to development.
The Zara Gold Project Summary
Over the past two years the Zara Exploration Joint Venture have progressed the Project to the following position:
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Resources
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Independent JORC compliant resource completed by Coffey Mining Pty Ltd in February 2008. Resources currently stand at:
Table 1: Koka Gold Deposit – reported above a cutoff of 1.5g/t Gold.
Category
Lower Cutoff Grade (g/t)
Tonnes (Mt)
Gold g/t
Metal (Koz)
Indicated
1.5
4.27
6.31
866
Inferred
1.5
0.86
6.33
174
TOTAL
1.5
5.13
6.31
1,040
# From Coffey Report dated 15th February for the Koka Insitu Mineral Resource reported above a nominal 1.5 g/t Au lower cutoff grade. MIK derived SMU model estimates using a nominal 5mE x 10mN x 5mRL SMU dimension to emulate assumed open pit mining selectivity. Bulk density of 2.73t/m3 has been applied to mineralised zones. Gold grade tonnage distributions are subdivided by JORC resource categories. Depletion is to the current natural surface, with no mining assumed to-date. The reported resource is otherwise unconstrained but limited by depth of drilling and model extents.
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Preliminary Metallurgical Results (2007)
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Very high gold recovered by gravity concentration
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Total gold recovery exceeds 96% after 24 hours gravity/cyanidation
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Low reagent consumption
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Hydrological
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Initial water search discovered sufficient potable water to accommodate diamond drilling and camp self-sufficiency. The expanded water search will tap into the untested major river system (Zara River) situated approximately 8km west of the Koka deposit.
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Topographic
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A Digital Surface survey with over 80,000 data points over the Koka discovery footprint has been completed and extended westwards to include the Zara Camp area and towards the main Zara River. Data points have been collected giving a vertical accuracy of 2 metres.
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Environmental
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Environmental base line data collection commenced in August 2007 and is expected to be completed by the end of 2008. A preliminary assessment will be available for the Scoping/Pre-feasibility study due out in October 2008.
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Social Impact
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Sub-Sahara has managed to maintain a strong local work force of highly skilled well trained Eritrean professionals with ample local labour with only two permanent expatriate personnel stationed in the country.
Managing Director Mike Griffiths said: “The Koka Gold deposit has all the right ingredients to be a successful project. We have a high grade gold deposit that we already know it extends a further 160 metres to the south and mineralisation is still open at depth.”
“All the other elements such as metallurgy, water and environment all seem to be returning favourable outcomes and we see no technical impediments to developing the project.”
“With the gold price remaining steady, this substantially enhances the Zara Project, not merely for Sub-Sahara and its shareholders, but for the emerging Eritrean mining industry.
The Zara Joint Venture comprises four contiguous licenses 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.
For and on behalf of
Sub-Sahara Resources NL