Tigray on the hunt for another Bisha

Recent drilling at Tigray Resources‘ (TIG-V) flagship Harvest copper-gold-silver project in northern Ethiopia has returned several high-grade intercepts, including 21 metres grading 5.7% copper, 1.5 grams gold per tonne, 18 grams silver per tonne and 0.8% zinc.

Tigray’s due diligence drilling in 2010 indicated Harvest “hosts potential for the discovery of a near-surface, gold-enriched polymetallic volcanogenic massive sulfide (VMS) deposit, similar to [Nevsun’s] Bisha,” and the company is looking to prove that with a 13,000-metre drill program.

Nevsun‘s (NSU-T, NSU-X) Bisha gold mine, located 150 km north of Harvest in Eritrea but in the same Asmara VMS belt of the Arabian-Nubian Shield, produced 379,000 oz. gold in 2011 – its first year of operations. The mine’s opening followed 13 years of delays that were largely the result of a border war with Ethiopia, harsh United Nations-sponsored sanctions and a difficult Eritrean government.

Tigray contends Ethiopia is an “excellent jurisdiction” with “favourable government policies.” Nevertheless, the Harvest project is near the border with Eritrea, where the U.S. State Department warns there is the “possibility of armed conflict between Ethiopian and Eritrean forces.” It notes U.S. government personnel and their families are restricted from travelling in the area as much as 60 miles inland from the border.

Tigray’s drill program is focused on Harvest’s Terakimti concession, with one of six claims making up the project. Three drill rigs have completed 11,000 metres to date, with the remainder expected by the end of February.

The company released results for seven new holes on Jan. 16 after an initial three holes the month before, with the best intersection from the new holes returning 21 metres grading 5.7% copper, 1.5 grams gold per tonne, 18 grams silver per tonne and 0.8% zinc in hole 008 from a 39-metre depth. Two step-out holes collared 50 metres on either side of the hole. To the south at hole 011 and north at hole 007, VMS-style mineralization continues but dips steeply. Hole 011 to the south returned 15 metres grading 2.61% copper, 2.53 grams gold, 43 grams silver and 6.77% zinc starting from a depth of 181 metres, which Tigray says indicates a high-grade VMS mineralization zone at depth. Hole 007 to the north returned two decent intercepts in the near-surface oxide zone, including 23 metres grading 0.05% copper, 1.48 grams gold, 2 grams silver and 0.07% zinc starting at surface, and 18 metres grading 1.33 grams gold starting from 31 metres depth.

Several other holes drilled 300 metres to the southwest tested the area surrounding 2010’s best drill hole, 10-03, which intercepted 52 metres of 4.1% copper, 1.55 grams gold, 26 grams silver and 0.13% zinc starting at a 45-metre depth.

In December, step-out drill hole 004 returned the best intersection to date 50 metres east of hole 10-03. Starting at a 57-metre depth, 004 intercepted 74 metres grading 3.77% copper, 1.31 grams gold, 14 grams silver and 0.7% zinc.

However, on Jan. 16, Tigray released assays for another four drill holes to the west, east, north and south of 004, all of which returned much lower-grade mineralization. Drill hole 002 found 4 metres grading 0.12%, 0.26 gram gold, 6 grams silver and 4.7% zinc; 003 intersected 1 metre of 1.95% copper, 3.42 grams gold, 22 grams silver and 0.08% zinc; 006 intersected 4 metres of 0.99% copper, 0.62 gram gold, 8 grams silver and 0.16% zinc; and 010 returned 15 metres grading 0.17% copper, 1.29 grams gold and 37 grams silver, with zero zinc.

Tigray says the holes form the southern, downdip extension of a massive sulphide lens identified last year. The mineralized system dips steeply south to subvertical, Tigray notes, and plunges 40 degrees to the east-northeast.

None of the recently released holes tested the target farther along its previously defined 800-metre strike length, but they did establish that mineralization continues slightly to the south and extends up to 240 metres deep in areas.

Tigray began trading in late August 2011 after being spun out from Canaco Resources (CAN-V) with $4 million in cash. Following a $5.25-million private placement in September at $1.05 a unit, Tigray had $8 million in December. A private Ethiopian company owns 30% of Harvest.

Tigray shares were down 4¢ to $1.23 at presstime on Jan. 16, following news of the drill results.