From: Berhane Habtemariam (Berhane.Habtemariam@gmx.de)
Date: Fri Oct 31 2008 - 07:31:30 EST
SUB-SAHARA RESOURCES QUARTERLY ACTIVITIES REPORT For the quarter ended 30 September 2008 HIGHLIGHTS: Eritrea
Sub Sahara continued to move toward completion of a Scoping/Pre-Feasibility study for
mining at the Koka Gold Deposit (Zara Project). Work Completed for the quarter
includes: oMetallurgical sampling ~5 tonnes of HQ diamond core samples were shipped to
Perth for comprehensive test-work; oStructural drilling Seven Diamond drill holes were completed returning excellent
results and oAquifer explorations A total of 8 high priority targets have been identified by
ground geophysics and are ready for drill testing. Assay results from a regional drainage sampling programme have confirmed known
areas of gold mineralisation (Koka/Konate Prospects) and identified new areas of
interest. Tanzania
Sub Sahara acquired management of the Nyanzaga Joint Venture that hosts the
4.5MOZ Tusker Gold Deposit, from Barrick Exploration Africa Ltd (subsidiary of Barrick
Gold Corporation). Sub Sahara can earn up to 68% equity in the JV by producing a
positive feasibility study for the project. Expenditure by Barrick since commencement of
the joint venture is over US$13million.
All exploration activity in Eritrea and Tanzania has been curtailed as a result of the
world financial crisis and the Company has engaged New Holland Capital Pty Limited to
advise on project and corporate financing matters.1
EXPLORATION ACTIVITY REPORTERITREA Zara Joint Venture (Gold) The Zara Joint Venture consists of four contiguous licenses covering an area totalling
196km2situated in northern Eritrea, approximately 160km northwest of Asmara city(Figure 1).
Work for the quarter included metallurgical, geophysical, hydro-geological and structural
programmes.
Assay results from a regional drainage sampling programme comprising 207 samples,
were received and have confirmed known areas of gold mineralisation (Koka and
Konate Prospects) and identified new areas of interest.
Koka Gold Deposit A programme of seven diamond drill holes (ZARD120-127) totalling 1,683.90m was
completed during the quarter (ZARD125 was abandoned and re-drilled as ZARD126).
The holes were designed to test an interpretation made by Vearncombe & Associates'
(Perth) regarding the structural controls on the gold mineralisation at Koka Prospect.
Assay results for the drilling were received by the end of the quarter and although
encouraging intersections were achieved in each drill hole, an initial appraisal indicates
that these intersections do not appear to have extended the mineralisation to depth. A
detailed interpretation of the results is in progress. Significant intersections for gold from
the drilling are given in Table 1 below.
A metallurgical sampling programme comprising seven (7) HQ diamond drill holes was
completed according to guidelines established by independent metallurgical
consultants, Coffey Mining (Perth). Visually identified gold mineralised zones in each
drill hole (plus 10 metre of footwall and hanging-wall) were sampled as whole-core and
bagged in 1m lots. Approximately 5 tonnes of sample has been shipped to Perth for
metallurgical test work. Test-work is expected to commence during the coming quarter.
Follow up work with ground-based geophysics, (IP and resistivity) was completed over
500 metres of strike at Koka South Prospect during the quarter. A total of 7 line km were
completed and the results show that the high resistivity anomaly associated with the
Koka Main Zone extends southwards for at least 200 metres, beyond the current
southern limit of drilling. Further drilling will be required to test this anomaly.
The Environmental Baseline Study, utilizing the services of Global Resources, which
commenced in July 2007, continues.
2
Table 1: Significant Diamond Drill Assay Intersections for gold, Koka Prospect: Hole Depth (m) North (UTM) East (UTM) Azimuth (°) Dip (°) >From (m) To (m) Interval (m) Gold (g/t) ZARD120 197.10 1824210 390335.9 315 -60 93 98 5 6.42 104 105 1 2.95 109 110 1 15.49 126 136 10 9.22 142 143 1 34.31 146 147 2 31.89 160 162 2 8.28 172 173 1 10.06 179 185 6 3.39 ZARD121 248.60 1824312 390336 315 -60 97 99 2 3.85 109 110 1 4.79 115 119 4 1.70 124 125 1 2.49 128 142 14 5.63 150 164 14 43.32 176 177 1 4.50 ZARD122 178.50 1823940 390283.8 315 -60 137 150 13 10.07 153 154 1 7.04 ZARD123 209.00 1824399 390329.2 315 -60 115 116 1 7.98 128 130 2 5.74 136 139 3 3.90 144 157 13 4.41 164 175 11 9.40 ZARD124 284.00 1824124 390367.4 315 -60 205 214 9 6.01 236 241 5 3.56 ZARD126 161.60 1824493 390319.3 315 -65 108 112 4 5.41 114 115 1 2.00 121 122 1 54.20 132 135 3 2.08 ZARD127 289.10 1824053 390357.1 315 -60 214 215 1 9.45 262 265 3 7.94 267 268 1 2.28 271 272 1 35.41 275 278 3 44.51 Note: The metres quoted are down hole metres and gold grades are uncut with up to 2 metres of internal
dilution (<0.25g/t gold). All samples are prepared at the Africa Horn Laboratory in Asmara, Eritrea and
then analysed by Genalysis Laboratories in Perth, Western Australia.
Konate Prospect A ground based geophysical survey, (IP and resistivity) totalling 7.5 line km, together 3
with geochemical sampling, geological mapping and a DGPS DTM survey were
completed at Konate Prospect during the quarter. The results of the geophysical work
will be assessed in conjunction with the revised geological map, once the results of the
geochemical sampling programme are available.
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