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Debarwa VMS Project
Highlights
  • The deposit in total is now estimated to contain 200 million pounds of copper, 180,000 ounces of gold, 2.94 million ounces of silver and 74 million pounds of zinc*
  • The underlying enriched supergene zone is estimated to contain 158 million pounds of copper with an average grade of 5.15% copper*
  • Within the copper supergene zone there is a zone of high-grade copper estimated to contain 41 million pounds with an average grade of 16.0% copper*
  • The surface oxide gold cap (oxide and transition zones) contains 83,000 ounces of gold at an average grade of 2.38 g/t gold*
*Note: Contained metal calculations are as follows: copper and zinc: tonnes x grade (%) x 2204.622. Gold and Silver: tonnes x grade (g/t) ÷ 31.10348. Results were rounded and no allowance was made for metal losses in the recovery process.

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.

Location

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

Resource

The current NI43-101 compliant resource was completed on August 18, 2011 by AMC Consultants Pty Ltd.



Debarwa Measured & Indicated Resources
Material
Cut-off
Tonnes
Copper
Zinc
Gold
Silver
Type
(%)
(%)
(g/t)
(g/t)
Oxide
Au 0.5g/t
371,000

0.06

0.04

1.47

6

Transition
Au 0.5g/t
720,000

0.08

0.05

2.85

27

Supergene
Cu 0.5%
1,389,000

5.15

0.07

1.40

33

Primary (Cu)
Cu 0.5%
774,000

2.34

3.92

1.30

29

Primary (Zn)
Zn 2.0% (<0.5% Cu)
58,000

0.36

3.05

1.24

22

Totals

3,312,000


Debarwa Measured Resources
Material
Cut-off
Tonnes
Copper
Zinc
Gold
Silver
Type
(%)
(%)
(g/t)
(g/t)
Oxide
Au 0.5g/t
300
0.01
0.01
1.03
4

Transition
Au 0.5g/t
103,000
0.07
0.03
4.59

90
Supergene
Cu 0.5%
321,000
11.63
0.007

2.58
65
Primary (Cu)
Cu 0.5%
7,000
2.39
5.97
1.32
26

Primary (Zn)
Zn 2.0% (<0.5% Cu)

Totals

434,000


DebarwaIndicated Resources
Material
Cut-off
Tonnes
Copper
Zinc
Gold
Silver
Type
(%)
(%)
(g/t)
(g/t)
Oxide
Au 0.5g/t
368,000
0.06
0.05
1.47
6
Transition
Au 0.5g/t
617,000
0.08
0.06
2.55
17
Supergene
Cu 0.5%
1,068,000
3.21
0.08
1.04
23
Primary (Cu)
Cu 0.5%
767,000
2.34
3.90
1.30
29

Primary (Zn)
Zn 2.0% (<0.5% Cu)
58,000
0.36
3.05
1.24
22

Totals

2,878,000


DebarwaInferred Resources
Material
Cut-off
Tonnes
Copper
Zinc
Gold
Silver
Type
(%)
(%)
(g/t)
(g/t)
Oxide
Au 0.5g/t
239,000
0.01
0.1
1.1
5
Transition
Au 0.5g/t
138,000
0.01
0.0
1.4
22
Supergene
Cu 0.5%
144,000
2.7
0.1
0.6
31
Primary (Cu)
Cu 0.5%
154,000
1.2
3.6
2.6
41
Primary (Zn)
Zn 2.0% (<0.5% Cu)
6,000
0.4
3.3
1.1
21

Totals



High-Grade Copper Supergene Zone
Cut-off
(%Cu)
Tonnes
Copper
(%)
Zinc
(%)
Gold
(%)
Silver
(%)
10
155,000
14.8
0.06
2.88
74
11
138,500
15.3
0.05
2.91
75
12
115,900
16.0
0.05
3.00
77
13
95,900
16.8
0.05
2.99
80
14
68,100
18.2
0.05
3.07
81