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The Debarwa deposit is a copper/gold/zinc VMS deposit that is approximately 8 by 30 metres in width and dips to the west at about 50 to 60 degrees. Drilling has defined mineralization over a strike length of more than 1,000 metres and down to about 250 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.

Over 32,000 metres of drilling has taken place at Debarwa for the independent resource estimate completed on January 29,2007 (see Jan.29 news release for details). The resource estimate was completed by Beacon Hill Consultants (1988) Ltd. a Vancouver based independent engineering firm.

Debarwa is located approximately 25 kilometres south of the capital city of Asmara and is accessible by paved roads with excellent infrastructure.

Debarwa Inferred Resources- January 26th 2007

 

Cut-off grade

Tonnes

Gold g/t

Silver
g/t

Copper %

Zinc %

Oxides

0.5 g/t Au

2,722,000

1.86

14.54

0.21

0.09

Supergene

0.5% Cu

1,497,000

1.33

30.06

5.12

0.27

Primary

0.5% Cu

1,104,000

1.16

24.86

2.17

3.21

TOTAL

 

5,323,000

1.57

21.04

 2.00

0.79

Total Debarwa and Adi Nefas Inferred Resources - January 26th 2007

 

Tonnes

Gold
g/t

Silver
g/t

Copper
%

Zinc
%

Oxides

3,141,000

 1.98

18.12

0.23

0.13

Supergene

1,572,000

1.45

32.66

5.05

0.41

Primary

3,390,000

2.06

62.49

1.69

5.56

TOTAL

8,103,000

1.91

 39.51

 1.78

 2.46