Rift, Echo Bay bid on Ethiopian mine

The mining company owned by the Ethiopian government is being approached to sell its Legadembi open-pit gold mine in Sidamo province.

A recent bid was placed jointly by Rift Resources (VSE) and Echo Bay Mines (TSE).

The mine, which produces 100,000 oz. gold annually, is near Adolla on a main road between Addis Ababa and the Kenyan border.

Gold occurs in veins and disseminations in late Proterozoic, metamorphosed, volcanic-sedimentary rock. There are also placer occurrences in overlying Quaternary sediments.

Rift estimates open-pit reserves at 11 million tonnes grading 3.65 grams per ton (0.1 oz. per ton). Underground reserves are not fully defined.

Additional capital expenditures could boost production to 180,000 oz. annually, and the deposit is believed to have excellent potential for increased reserves.