AFRICA-focused Sub-Sahara Resources is targeting a pre-feasibility study at the Zara gold project in Eritrea by October.
Sub-Sahara's Zara project is about 240km northwest of Asmara
The company hopes the current drilling and studies will push the Koka gold discovery towards development.
The JORC-compliant indicated and inferred resource estimate reported in February for the Koka deposit is 5.13 million tonnes at 6.31 grams per tonne gold for 1 million contained gold ounces, at a cut-off grade of 1.5gpt.
“The Koka gold deposit has all the right ingredients to be a successful project,” Sub-Sahara managing director Mike Griffiths said.
“We have a high-grade gold deposit that we already know extends a further 160 metres to the south and mineralisation is still open at depth.”
Sub-Sahara said it has a strong local workforce of Eritreans with only two permanent expatriate personnel based in the country.
“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,” Griffiths said.
The Zara project is a joint venture with the Eritrean Government, in which Sub-Sahara has a 69% interest.
SBS Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
