http://www.proactiveinvestors.com.au/companies/news/62310/eritrea-waves-the-mining-flag-62310.html
Eritrea waves the mining flag
Wednesday, May 13, 2015
by Proactive Investors
Eritrea has become an increasingly attractive address for mining
investment since its independence 24 years ago with its attractive
investment regime attracting 17 companies from China, Russia, UK and
Australia.
These include South Boulder Mines (ASX:STB), Nevsun Resources
(AMEX:NSU), Sunridge Gold Corporation (TSX: SGC) and China’s SFECO.
Eritrea has a long history of mining starting with colonisation period
when Italy had established mining industry at Karora, Debarewa, and
Augaro.
It has a stable government with an educated and disciplined work force
while benefitting from its location along the Red Sea, which offers
access to export markets.
The country’s mining laws ensures that the Eritrean people receive
their fair and equitable share while including monitoring and strict
adherence to internationally accepted practices ensuring safety and
protection of the environment.
About 60% of Eritrea is covered by sedimentary rocks that tend to host
metallic minerals.
These include gold, silver, copper, zinc, barite, limestone, granite
and rare earth metals like tantalum and much more.
Companies
Australia’s South Boulder Mines is currently completing the Definitive
Feasibility Study for the Colluli Potash Project, which is on track
for delivery in the September 2015 Quarter.
A Pre-Feasibility Study has already demonstrated highly favourable
economic outcomes from Phase I of the project, which has a Resource of
1.289 billion tonnes.
Colluli also benefits from its location just 75 kilometres from the
coast, which makes it one of the most accessible potash deposits
globally.
Mineralisation starts at just 16 metres, making the resource amenable
to open cut mining methods.
Substantial upside for the project exists from the exploitation of
other contained products within the resource such as high purity
rocksalt, kieserite (magnesium sulphate), gypsum and magnesium
chloride.
Canada’s Nevsun finished gold production in 2013 and is currently
extracting copper while making preparation to extract zinc from Bisha,
one of the highest grade open pit copper mines in the world.
The Zara Mining Share Company run by the Chinese company SFECO is
expected to become Eritrea’s next gold producer in 2016, followed by
Canada’s Sunridge.
Proactive Investors Australia is the market leader in producing news,
articles and research reports on ASX emerging companies with
distribution in Australia, UK, North America and Hong Kong / China.
Received on Wed May 13 2015 - 07:04:36 EDT