Perth-based gold explorer Sub-Sahara Resources NL has increased its stake in the Zara joint venture project, a gold licence in northern Eritrea, to 69 per cent after spending around $4.1 million on exploration.
The full text of a company announcement is pasted below
Sub-Sahara Resources (ASX: SBS) has now completed Stage 3 of the Zara Joint Venture Agreement having spent in excess of US$3.3 million on exploration on behalf of Dragon Mining Limited (ASX:DRA) and Sub-Sahara.
This expenditure dilutes Dragon's interest to 20% with Sub-Sahara having earned 70% of Dragon's original 66.65% holding or 46.65% of the Zara Project in Eritrea. Dragon will now be free carried through to completion of a bankable feasibility study.
The equities in the project are now:
SBS is currently proceeding with a major exploration programme on the Zara project. A resource estimate based on drilling data completed by the company up to April 2007 has shown an Inferred Resource of 7.0Mt grading 3.4g/t Au containing 760,000 ounces gold.
Drilling conducted at the deposit since that time has been directed towards increasing the resource and the level of confidence.
Sub-Sahara's Managing Director Mike Griffiths said, "Management was always very confident about the potential of the Zara gold project and consequently we are keen to maximise our interest in the Project."
