EXPLORATION OPERATIONS UPDATE Sub-Sahara Resources (“the Company”; ASX: SBS) provides the market with an end of year update on the Company’s exploration activities in Eritrea and Tanzania, east Africa. Eritrea Sub Sahara has earned a 69% equity in the Zara gold Joint Venture which covers an area of 196km2 and is situated in northern Eritrea, approximately 160km northwest of the capital city of Asmara. As operator of the project, Sub Sahara has completed over 11,000metres of diamond drilling at the Koka target, with very encouraging results the most recent being reported to market on 28 November 2007. In May 2007, the Company announced an Inferred resource at the Koka Gold deposit of 760,000 ozs gold from 7million tonnes of ore, grading 3.4g/t gold, and the recently completed drilling has extended the known mineralization to the south by a further 75 metres In addition, the initial metallurgical test work indicated a +95% recovery of gold after 24 hours gravity/cyanidation with manageable minor acid mine drainage. Petrographic studies also confirmed the uncomplicated nature of the ore. Drilling activity has been put on hold until the end of January so as to allow a timely review of the work completed to date. Efforts to complete the updated Koka resource estimate up-grade have also been delayed and the Company now expects to complete the process by the end of February 2008. The recently announced granting of the first Mining Lease in Eritrea to Canadian listed Nevsun Resources is considered a very strong endorsement of the industry and this should lead to a streamlined approach for other potential miners in the country. Tanzania Sub Sahara continues to pursue exploration opportunities with the Mwamazengo Prospect (Mabale Hills Project) in Tanzania Africa, which forms part of the Lake Victoria Joint Venture with Canadian-listed Currie Rose Resources Inc (TSX-V: CUI) returning significant results during the year. Drilling of the original targets identified has been completed and all assay results have been returned, with a number of new significant coincident geochemical and geophysical anomalies generated during the years activities. Sub Sahara’s 49% interest in the Nyanzaga Project with Barrick East Africa Limited which holds approximately 4.5 million ounces. The Company has spent a total of US$13.3 million on the project which continues to return good results. Drilling activities are currently in intermission and will recommence in early January 2008.
SBS Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
