Eritrea pulls plug on exploration

Vancouver – Three Vancouver-based companies at various stages of advancing their Eritrean exploration projects have been instructed to halt their work in the tiny East African nation. In a letter dated September 2, 2004, the Ministry of Mines reportedly halted all mineral prospecting and exploration work with no reason given according to the companies’ news release.

Nevsun Resources (NSU-T), Sunridge Gold (SGC-V) and Sanu Resources (SNU-V) will be impacted by the order.

Nevsun ended drilling on its Bisha copper-gold project in mid-August outlining high grades in all three levels of the deposit. More than 31,250 metres were drilled in 195 holes for resource estimation which was to be used for a feasibility study. The Bisha Main zone represents a volcanogenic massive-sulphide deposit with oxide and sulphide mineralization in three distinct zones.

Environmental baseline studies were under way and the next round of drilling was slated for October.

Sunridge is partnered with Sub-Sahara Resources at their Asmera volcanogenic massive-sulphide project, where resource definition drilling is under way. The project is siutated about 150 km west of Nevsun’s Bisha project.

Sunridge can earn a 90% interest in the project from Australian-listed Sub-Sahara and Africa Wide Resources in return for financing the project through to production.

The companies said they are seeking clarification into the matter.

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