sbs and barrick agree on nyanzaga project

14th August, 2008
ASX Announcement
Sub-Sahara and Barrick agree way forward on the Nyanzaga Gold Project in Tanzania

Sub-Sahara Resources (ASX:SBS) advises that Agreement has been reached with Barrick Exploration Africa Limited (BEAL), a subsidiary of Barrick Gold Corporation, to reverse the earn-in terms of Nyanzaga Joint Venture that hosts the 4.5Moz Tusker Gold deposit (Figure 1).
Sub-Sahara currently hold a 49% interest in the Nyanzaga Joint Venture and under the terms of the revised Agreement, the Company can earn an additional 19% interest in the project by completing a positive Bankable Feasibility Study (BFS) (Figure 2 & 3). This increased interest will give Sub-Sahara a 68% interest with BEAL holding the balance.
Sub-Sahara will take over as manager of the Joint Venture.
Managing Director Michael Griffiths said: “This is a very significant event for Sub-Sahara and we are optimistic about the potential of the project and its positive impact on the Company,” Mr Griffiths said.
“We have inherited a very comprehensive database from Barrick and we have commenced review activities. Our plan is to look at the current large, low grade resource of 123Mt grading 1.15g/t gold for 4.5Mozs at Tusker and test the potential for establishing and developing a more modest, higher grade deposit.”
“We have been actively exploring in Tanzania for over 10 years and we look forward to using our extensive knowledge to advance the project and this will be further enhanced by the good working relationship that we have forged with Barrick.”
For and on behalf of
Sub-Sahara Resources NL
M.R. Griffiths
Managing Director
Website: www.subsahara.com.au
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FOR FURTHER INFORMATION:
Michael Griffiths, Managing Director
Sub-Sahara Resources
[email protected]
Ph: +61 8 9227 3260
Lynda Rovis-Hermann
Professional Public Relations (WA)
[email protected]
Ph: +61 8 9388 0944
About the Nyanzaga Joint Venture
The Nyanzaga Joint Venture covers a total of 500km2 and is situated approximately 60km south of the city of Mwanza in central Tanzania. Barrick has spent over US$13million since the commencement of the joint venture.
About Sub-Sahara
Sub-Sahara Resources is an ASX listed company (ASX: SBS) with interests in a number of highly prospective and rapidly expanding African projects, including the Zara joint venture in Eritrea and the Nyakufuru and Kahama joint ventures with Resolute Mining (all in Tanzania).
In the next 12 – 18 months, Sub-Sahara will begin its transition from an explorer to a producer on the Zara Project, located 160km north of the capital of Eritrea, Asmara and the Company expects to complete a pre-feasibility study on the Zara Project by the end of 2008.
Competent person statement
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr M R Griffiths, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Griffiths is a full-time employee of Sub-Sahara Resources NL. Mr Griffiths has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking 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’. Mr Griffiths consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Figure 1: Nyanzaga Joint Venture Location
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Figure 2: Nyanzaga Project - Tusker Deposit Location
Figure 3: Nyanzaga Project - Tusker Cross-Section
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