Sub-Sahara Resources ups Zara JV stake

By Edited announcement
Monday, 20 August, 2007 - 11:18

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."

Companies: 
Sub-Sahara Resources