Adi Nefas Highlights

• High-grade VMS deposit.
• NI43-101 indicated resource of 2.7 million tones with 8.38% zinc, 2.85 g/t gold and 99.36 g/t silver, containing 504 million pounds of zinc, 250,000 ounces of gold and 9 million ounces of silver.
• Close proximity (6 km) to the large Emba Derho VMS deposit.

The Adi Nefas deposit is a zinc/gold/copper VMS deposit that is approximately 10 metres wide and dips to the east at about 70 to 80 degrees. Mineralization is defined over a strike length of more than 450 metres and down to over 300 metres from surface. The main body of mineralization consists of three zones, the gold gossan zone at surface underlain by a zone of supergene enrichment with high-grade copper, gold and silver underlain by a zone of zinc rich primary sulphides.

Location and History

The Adi Nefas deposit is located approximately 12 km north of the capital city of Asmara and is accessible by paved roads with excellent infrastructure. It is also 6 km east of the large Emba Derho deposit and could potentially be included in a mining plan for Emba Derho. The deposit was first drilled by Sunridge in 2005.

Resource

The current NI43-101 compliant resource was completed by MSA and announced early in 2008.

Adi Nefas Gossan Outcrop	Adi Nefas Cross Section 200 N	Au Soil Geochem
Zn Soil Geochem	Gupo Gold Deposit	Adi Nefas VMS IP Chargeability