In an agreement with the East African nation of Eritrea, Golden Star Resources (TSE) and its 60%-owned subsidiary, Pan African Resources (CDN), have acquired an exploration licence covering the Galla Valley property.
The 300-sq.-km property, south of the capital city of Asmara, is underlain by Proterozoic greenstone belts. The Adi Rassi copper-gold occurrence is the most promising intermediate stage target. The companies have committed to spend US$1.25 million on exploration in the first year of the 3-year licence.
The most significant intercepts from core drilling grade 1.1% copper and 2.84 grams gold per tonne over 6.7 metres, and 1.16% copper and 0.55 gram gold over 23.4 metres and 40.7 metres. Its resource has been estimated at 9.8 million tonnes grading 1.32% copper and 0.78 gram gold.
Another promising target in the country is the Torat gold mine, where past production revealed head grades of up to 60 grams gold.
Eritrea, situated in the Horn of Africa, gained its independence from Ethiopia in 1991. In 1995, the government adopted a new mining code and tendered exploration licences.
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