from THE WESTSub-Sahara to take major stake African project14th...

from THE WEST

Sub-Sahara to take major stake African project

14th August 2008, 12:30 WST

Perth-based Sub-Sahara Resources will take the majority stake of a joint venture project with Barrick Exploration Africa, reversing the companies’ earlier arrangements to intensify its search for a low grade gold resource.



Under the new agreement, Sub-Sahara will take over as manager of the Nyanzaga joint venture project – which hosts the Tusker gold project in Tanzania – with the ability to earn a further 19 per cent stake by completing a bankable feasibility study.



On completion of the study, Sub-Sahara would hold 68 per cent of the project.



Sub-Sahara managing director Michael Griffiths said the firm had inherited a comprehensive database from Barrick and had commenced review activities.



“Our plan is to look at the current large, low grade resource of 123 million tonne grading of 1.15 grams per tonne of gold for 4.5 million ounces at Tusker and test the potential for establishing and developing a more modest, higher grade deposit,” he said.



“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.”



ANDREW HOBBS