SBS - Sub-Sahara Resources

Morning guys

This is one to watch has broke the 0.9c mark and moving along pretty well...

Here is the ann today:

Koka prospect in Eritrea continues to deliver high grade results

Assay results from Sub-Sahara Resources (ASX: SBS) Koka prospect, part of the Zara Gold Project in Eritrea, Africa, has returned further multiple, significant high grade gold intercepts.


It seems there has been alot of interest in this company Here is a little profile on it.

Sub Sahara Resources NL (SBS, formerly Maiden Gold NL) is an Australian exploration company based in Perth, Western Australia. The company focuses on exploration in Eritrea, Tanzania and Australia.

Eritrea:Asmara Project: SBS has interests in two exploration licences, Debarwa and Adi Nefas. The Asmara project is a joint venture with Canadian stock exchange-listed company Sunridge Gold Corp. Zara Project: The Zara project is a joint venture with Dragon Mining and Africa Wide Resources. It comprises a single licence about 160km north-west of Asmara.

Tanzania:Nyanzaga JV: The Nyanzaga joint venture with Barrick Exploration Adrica Ltd (BEAL), a subsidiary of Barrick Gold Corporation, covers around 500 square kilometres of highly prospective geology and is located 60km south-south-west of Mwanza City on the north-eastern flank of the Sukumaland Archaean greenstone belt in central Tanzania. Mabale Hills: The Mabale Hills project consists of five licences and one application covering 261 square kilometres. Western Rift JV: SBS has an agreement with Tanzanias Canyon Resources Ltd covering around 16,000 square kilometres in western Tanzania. Kahama: JV with Resolute Mining Limited (RSG). It comprises a number of tenements located on the western extent of the Nzega greenstone belt, approximately 30km west of RSGs Golden Pride Gold Mine in central Tanzania. RSG has a 51% interest in the project and an option to earn an additional 19% interest by contributing an additional $5m over four years or producing a Bankable Feasibility Study. Other projects include Lake Victoria, Mabale Hills, Jubilee Reef, Western Rift, Kasamwa, Nyamirembe and Musoma-Mara.

Australia Duketon Project: The Duketon project consists of four prospecting licences 120km north of Laverton in WA.

agree with you there motion, this one has had some spectacular gold hits recently with one today up 67 g/t au. With management already talking up the prospect of further high grade results and an increase in the already robust deposit size, I think the market will start to take this one higher as the news keeps coming out.

Looks like if the 12.5c level was to fall that this one might want to run up a little higher. We have seen it so often recently once a stock takes out the technical/chart resistance point it tends to run further higher, I get this feeling with SBS.

And with the increase in volume recently wouldn't take much now too break that level.

Also good to see it has formed a solid base above the 10c meaning very little downside from here.

massive orders now going through this one may now run pretty hard now, 3 million just taken in less than a minute. The 12.5c level is broken not much left now.

mick2006 said:

massive orders now going through this one may now run pretty hard now, 3 million just taken in less than a minute. The 12.5c level is broken not much left now.

Click to expand...

Yep mick seems to be having a good run now...

They also had a good ann on the 24/07/07 which I think has really kicked this run off to the market after todays ann.. There is no shortage of ann if you review the history of this company.

I think the management are doing a great job in marketing this company and it's findings...

Ann as follows..

24/07/07

Sub-Sahara Resources announced that it has received positive metallurgical test work results for ore samples taken from the Koka gold deposit, part of its Zara Project in Eritrea. Test work was completed by specialist metallurgical consultants, Ammtec of Perth, Australia on three representative composite metallurgical samples selected from 3 diamond drill holes (ZARD009, ZARD015 & ZARD035). Gravity separation results include: ZARD009 42%, ZARD015 40% and ZARD035 73%

mick2006 said:

massive orders now going through this one may now run pretty hard now, 3 million just taken in less than a minute. The 12.5c level is broken not much left now.

Click to expand...

Well mick the 800,000 order is getting eaten away very fast...this is a vey postive sign for SBS... Well be an interested few days...

motion said:

Well mick the 800,000 order is getting eaten away very fast...this is a vey postive sign for SBS... Well be an interested few days...

Click to expand...

As an aside, for those interested in Eritrea, here is a link that provides details on the country:

http://news.bbc.co.uk/2/hi/africa/country_profiles/1070813.stm

It is a country with a brutal 20th century history (colonial outrages by the Italians, wars with its neighbours, warlords and famine) and it still has unresolved issues with its border with Ethopia and feeding its general populace. As such, I would suggest that there is a strong sovereign and political risk attached to this Eritrean tenement. It amazes me that people are interested in investing in these types of countries.

Having said that, I think it is great that all these investment dollars are flowing to African nations! Lets just hope that it lands in the hands of the people who need it. Good luck to SBS and Eritrea I say. Whopping amount of gold too.

Bushman said:

As an aside, for those interested in Eritrea, here is a link that provides details on the country:

http://news.bbc.co.uk/2/hi/africa/country_profiles/1070813.stm

It is a country with a brutal 20th century history (colonial outrages by the Italians, wars with its neighbours, warlords and famine) and it still has unresolved issues with its border with Ethopia and feeding its general populace. As such, I would suggest that there is a strong sovereign and political risk attached to this Eritrean tenement. It amazes me that people are interested in investing in these types of countries.

Having said that, I think it is great that all these investment dollars are flowing to African nations! Lets just hope that it lands in the hands of the people who need it. Good luck to SBS and Eritrea I say. Whopping amount of gold too.

Click to expand...

It's always good to highlight the good and bad with investing in 3rd world countries. So having been to Eritrea on my travels from Egypt to Cape Town via overland, Money is a power and a government of it's own in these 3rd world countries as seen in Zimbabwe back in the early days of diamonds, tobacco and now tourism.

My point being the main reason people can invest in these countries and feel safe about the investment is money buys anything in these countries and thats why big company like SHELL and so on can mine for oil, gold or any thing else that will bring in the money.

Which in turns leads to money in the local economy and you are right bushman the 3rd world countries who really do need it.

SBS will post as an asx announcement today (not the best day Dow down possibly a good buying opportunity) cheers



Currie Rose Resources Inc.: Mwamazengo Prospect in Tanzania Continues to

Return Good Results
Thu Jul 26, 10:45 AM

Email Story IM Story Printable View ST. CATHARINES, ONTARIO--(CCNMatthews - July 26, 2007) - Currie Rose Resources Inc. (TSX VENTURE: CUI.V) -

Highlights

- MBND008 5 metres grading 2.25g/t gold from 6 metres at Mwamazengo

- MBNR-D003 22 metres grading 2.03g/t gold from 131 metres at Mwamazengo

- MBNR-D004 13 metres grading 3.22g/t gold from 116 metres at Mwamazengo

- MBNR-D007 3 metres grading 29.34g/t gold from 151 metres at Mwamazengo

Currie Rose Resources (TSX VENTURE: CUI.V) advises that the recent phase of drilling on the Mabale Hills project in Tanzania Africa, which forms part of the Lake Victoria Joint Venture with Australian-listed Sub-Sahara Resources NL, has been completed and all assay results have been returned.

Link for the complete announcement

http://ca.news.finance.yahoo.com/s/...c-mwamazengo-prospect-tanzania-continues.html

Extract from Eritrean newspaper

Notice is hereby given to the public that SUNRIDGE GOLD
Eritrea has been incorporated as a branch company in Eritrea.
1. The Offi ce of the Branch Company is in Asmara
2. The Capital of the Company is 150,000.00 (Nakfa)
3. The business objectives of the Company are:
a) Mineral exploration and development
b) All legally permissible activities in relation to mineral
exploration and development
4. Amanuel Arafaine has been appointed General Manager of the
Company for indefi nite period or offi cially replaced.
5. The Company has been registered as a branch for unlimited
period of time or until replaced by another form of a Company.
Sunridge Gold Eritrea
NOTICE

Does anyone have any information or opinion re Nevsun Resources Bisha Mine, Mining Licence? Decision due soon.

Gold's time is coming: Lassonde

Rebecca Lawson
Monday, 6 August 2007

THIS year's recipient of the 2007 Diggers & Dealers G J Stokes Memorial Award, Newmont vice chairman Pierre Lassonde, believes the resources boom will last a whole generation.

Pierre Lassonde

Kicking off the annual mining forum held in Kalgoorlie, Lassonde warmed up the packed house by telling his tale of lost luggage and the hardship of trying to buy a "polyester" suit in the town on a Sunday afternoon.

Peppering his presentation with entertaining anecdotes, Lassonde got down to business, paying particular attention to the "super cycle" the resource sector is enjoying and drawing comparisons to the last super cycle between 1966 and 1980.

Lassonde said that just like the last super cycle that was propped up and prepared by the baby boomers, this cycle was the work of China and India's booming economies.

He said the external factors were also strikingly similar, including wars in both cycles, for example, the Vietnam war in the past and the current war in Iraq and on Al Qaeda.

Inflation was also high in both eras and gold in the past shot up 2300% while currently it is up 170%.

"Gold's time is coming," he said.

However Lassonde said the similarities ended there and the difference between the two super cycles was that more companies – paying particular homage to the oil sector – were increasingly government controlled.

He said profits were not going into exploration, hence discoveries have decreased, and permitting, political and environmental responses have become more challenging.

Building on the differences, Lassonde said the gold sector was not coming up with the big discoveries made in the past super cycle, although this time around exploration budgets were bigger.

"The big discoveries – the Yancochas, the Super pit – they were all made back in the 60s, 70s and 80s," Lassonde said.

"Look at the past 20 years, [discovery is] coming down and down and down.

"When is the last time you had a 30 million ounce discovery in the world? Not in this decade I can tell you that."

Lassonde also said demand for gold jewellery is at an all time high, with advertisements placed by the World Gold Council – which Lassonde is a member of – in China, India, America, Europe and the Middle East having a profound effect.

Wrapping up the presentation, Lassonde gave several predictions for this current super cycle, based on past events.

"This bull market in natural resources will last a whole generation, that's 20 years plus and, yes, China and India will have hiccups, but while they have crisis situations they will not stop growing," he said.

"The $US dollar over the next five years will plunge against [China's] RMB."

Lassonde predicts the Canadian and Australian dollar will grow a further 5-10% against the US dollar, with the Canadian dollar reaching a high of around $1.06.

Based on history, Lassonde said copper and moly producers have been unable to withstand prosperity. He added that we have probably seen the metals' price reach its peak.

Commodities to perform well in this cycle are nickel, platinum, gold and oil, and in his mind the last two commodities will perform the best in this cycle.

Lassonde also brought in the Dow Jones index into his prediction, saying the gold price and the index will come down to a 1:1 ratio.

This would be similar to the path taken in the last cycle in the 1960s when the ratio was 28:1, and in the 80s when it was a 1:1 ratio.

Lassonde said in 2000, the ratio was 42:1 and that the ratio has decreased to 20:1.

Sure to leave a good taste in the mouths of gold investors, Lassonde's final prediction was that gold would have three zeros in its price, however he conceded he had no idea what the first number could be.


Click here to read the rest of today's news stories.

Nevsun Resources Announcement 13.08.07


The Government of Eritrea has substantially completed its review of the Feasibility Study and the Social and Environmental Impact Assessment (SEIA) for the Bisha project. These documents were prepared on behalf of the Company by AMEC Americas for the purpose of licensing the Bisha Project. The Government of Eritrea engaged an international mining consultancy to complete a due diligence review of these documents, and the Company requested Endeavour Financial to arrange a further independent review to be completed on behalf of prospective project financing partners.
The Company has continued constructive discussion with the Government of Eritrea regarding the development of a mining agreement with a view to taking the Bisha Project into production. These discussions are still progressing.
In parallel with the mining agreement discussions, Nevsun has undergone a bidding process and has selected its EPCM (engineering, procurement, construction and management) contractor for
the Bisha Project; SENET of South Africa. The Company also sought competitive quotes for the procurement of the project’s major capital long lead items and has identified its preferred supplier for the critical long lead items, including the crusher, SAG and ball mills.
Finance and Timing
Endeavour Financial is advising the Company in the financing of the Bisha project. Representatives of several multilateral financial institutions have visited the site and an independent technical consultant (ITC) has carried out third party due diligence on behalf of the interested financial institutions who would be expected to provide project finance.
The Company anticipates completion of a comprehensive mining agreement with the Government later this year, with the grant of a mining license to follow shortly thereafter.
Assuming a normal progression with finance, the Company anticipates commencement of production in late 2009 or early 2010.

Sold all SBS shares for .08c on 20.8.07. Eritrea US relations deteriorating, Nevsun unable to obtain a mining licence.DYOR. All the best to current holders.

Some of the risk has just been taken out of this stock,time for a re rate.

TORONTO (Reuters) - Nevsun Resources Ltd said on Monday it had signed an agreement with the government of Eritrea over ownership of Nevsun's Bisha gold and base metals project, raising hopes that it will soon get final approval to begin construction on the mine.

The news drove the Canadian miner's shares up as much as 25 percent and boosted shares of other miners active in the northeast African country, which see the Bisha development as a test-case for further development.

Under the agreement, Eritrea will take an additional 30 percent stake in the project, to add to the 10 percent interest provided under the country's mining legislation. The price will be determined by an independent valuator when Bisha ships its first gold, which analysts see occurring in 2010 or later.

Nevsun said the Eritrean government had assured the company that the mining license and agreement for Bisha will be "advanced very promptly." Nevsun expects the mine to yield around 1 million ounces of gold, 747 million pounds of copper, and 1.1 billion pounds of zinc over its 10-year life.

"This is a precursor to the finalization of discussions regarding a mining agreement for the Bisha project," the company said in a statement.

Just after midday on Monday, the company's stock was up 31 Canadian cents at C$2.11 on the Toronto Stock Exchange, after initially rising as high as C$2.25 following the news.

Haywood Securities analyst Stefan Ioannou said the government's additional stake in the project was unexpected, but said the agreement shows Eritrea is serious about moving the project ahead.

"I would like to think by the end of the year we'll see the (mining) permit itself," Ioannou said.

He also said it was a good sign that an independent valuator would determine the price of the additional 30-percent stake, which he valued at $136 million.

Nevsun said the agreement will help reduce risk of disruption at the local level. The government will make a cash payment over the next few months that will help offset capital funding requirements for the mine, which are expected to total close to $300 million, according to the company's Web site.

Gold explorers have flocked to Eritrea in recent years, although some investors have remained suspicious after the nation unexpectedly ordered a halt to foreign mining work in September 2004. The ban was lifted the following year.

Bisha is expected to be the first new mining project in the country to reach production, and shares of other locally active companies rose on the news of the agreement.

Sunridge Gold , which is also trying to bring a project to production, rose 30 Canadian cents to C$1.90 on the TSX Venture Exchange, while Sanu Resources was up 18 Canadian cents at C$1.50. Base metals player Lundin Mining , which holds a stake in both Sunridge and Sanu, was up 41 Canadian cents at C$12.80.

Haywood's Ioannou said Bisha was "ripe for the picking" in an industry that has seen heavy consolidation as miners search to replace reserves.

Old news but interesting for SBS followers.......

Press Release by the Ministry of Energy and Mines concerning License award
By Staff
Oct 2, 2007, 14:11


Eritrea has a significant endowment in minerals exploration and in recent years notable exploration successes have been made with world class gold, copper and zinc discoveries. To hasten the continued development of exploration opportunities in Eritrea, the Ministry of Energy and Mines has been reviewing applications for the award of exploration Licenses for gold, base metals and industrial minerals.

The Ministry is pleased to announce that it has recently issued two exploration Licenses for iron and base metals to Beijing Donia Resources Co. Ltd. in Defere (Central region) and Kenatib (Southern region), and gold and base metal exploration License to Eritrea-China Exploration and Mining Share Company (J.V Company) in Augaro (Gash-Barka region).

The Augaro License area includes the largest colonial era gold mining operation in Eritrea and early stage exploration in recent times has shown that the area has potential for further discoveries.

The Ministry looks forward to continuing its review of new applications for exploration Licenses throughout Eritrea. The Ministry further looks forwards to concluding its active review and discussions with Nevsun Resources concerning its application for a Mining License for the Bisha project in Gash-Barka region.

The Government of Eritrea is committed to build a modern and efficient mining industry to harness its mineral wealth in partnership with both local and international mining development businesses and organizations from all corners of the world as is reflected in these recent agreements.

Gold explorers in Eritrea all up a minimum of 7% overnight

Nevsun Resources up 8.41%

Sunridge Gold up 9.73% (SBS holds 7.6M shares @ $2.03 valued @ $15.4M)

Sanu Resources up 7.25%

All these companies have risen sharply due to Nevsun Resources positive progress towards a mining liceince in Eritrea.

SBS also holds 6M shares in Currie Rose Resources valued @ $2.2M

and SBS has a market cap of $40m???????????????

Nevsun Secures $60M From Eritrea to Develop Bisha

By Jon A. Nones
21 Nov 2007 at 08:56 PM GMT-05:00


SAN FRANCISCO (ResourceInvestor.com) -- On Oct. 31, Nevsun Resources [AMEX:NSU; TSX:NSU] announced that the government of Eritrea had finally signed a participation agreement for the company's massive Bisha project, agreeing to purchase a 30% stake at a “full fair value.” At the time, RI noted that the biggest question that remained was what price the Eritrean government would pay for the interest in the project. That question has now been answered.

At this year’s Hard Assets Conference in San Francisco, Nevsun CEO John Clarke confirmed with RI that the government of Eritrea has secured $60 million for its additional 30% interest in the Bisha project. He said this is the first time the government has secured funding for a foreign mining project, which is a rare occurrence in any underdeveloped country.



On Nov. 16, media sources reported that the China Import-Export Bank will lend $60-million to Eritrea so that its state-owned mining firm can buy a partial stake of the gold mine. Eritrea had agreed to purchase a 30% paid participating interest in Bisha, to add to its 10% free participating interest. The government will also require a 5% royalty tax on gold and 3.5% base metal tax per mining legislation.

Bisha is one of the largest undeveloped gold and base metal deposits in Africa, with 1 million ounces of gold, 9 million ounces of silver, 747 million pounds of copper and 1 billion pounds of zinc. But the fate of the project has remained up in the air as the Eritrean government has been slow to issue a formal mining permit.

Clarke told RI that the mining agreement is almost in place, with only a few more details to iron out. He expects to have the mining permit in hand by year end, with development slated to begin immediately thereafter. This would be the country’s first new mine since the colonial times, he said, which could open the door for many more.

The agreement shows confidence in the country that it will fulfil its promises to miners, and is an important step forward for the industry, according to Clarke. He said in the next 3 to 4 months, the market will see a sequence of events that may change popular opinion of Eritrea, noting that some majors have visited the country recently.

After gaining independence from Ethiopia in 1993, Eritrea and Ethiopia have been in a border conflict, ongoing since a two-year war from 1998 to 2000 in which 13,000 Eritreans died. Both countries currently have more than 100,000 troops close to the frontier, raising fears of a repeat of their war.

Under a peace deal that ended the two-year war, a U.N. peacekeeping force of 1,700 monitors a security buffer zone on Eritrea's side of the 1,000-kilometre frontier. Eritrea has had strained relations with the force, and restricted helicopter flights and expelled western peacekeepers.

Although Eritrea is believed to be very rich in minerals, few miners have braved the war-torn nation in recent years. In addition to Nevsun, Sanu Resources [TSX-V:SNU], Sunridge Gold [TSX-V:SGC] and Sub-Sahara Resources [ASX:SBS] have properties in the country.

MDN [TSX:MDN], formerly Northern Mining Explorations, was one of those few before it decided to withdraw from Eritrea on July 11, after waiting since 2003 for an exploration permit for its Haykota property.

In fact, Nevsun was ordered to halt operations by the Eritrean government in late 2004, and only allowed to resume exploration activity in early 2005. Clarke said Eritrea had held off on releasing any permits for at least three years up until just recently.

Frontier Strategy Group’s Above Ground Risk Report rates the country as a C for foreign mining investment, the bottom 10 of countries globally for political risk. Alex Turkeltaub, managing director at Frontier Strategy Group, told RI the risk is not improving, but the country “has no choice” but to allow more foreign investment “given its political isolation.”

Turkeltaub indicated that the decision to advance the Bisha project may have been a political move more than anything else.

“The involvement of the Chinese is part of the new trend across the natural resources sector in Africa, whereby the Chinese offer terrific terms in order to get access to resources,” he added.

Richard Corbo, adviser to the CEO of MDN, previously told Resource Investor that the Eritrean government “owes a lot of money to the Chinese for arms,” noting billions of dollars.

“They’re probably looking to offer properties and license or mining rights or whatever to the Chinese,” he said.

The loan by the Chinese Import-Export bank is the first commercial loan to Eritrea, after it signed a 500-million yuan ($67.36 million) soft loan with the country last year.

In early February, as reported by RI at Mining Indaba 2007, Chinese President Hu Jintao toured eight African nations chasing mineral resources. China had plans to lend African nations as much as $3 billion in preferential credit over three years and double aid and interest-free loans over the same time.

Clarke said the country’s ability to obtain funding from outside sources simply shows promise in the mining sector.

“The government has access to the funding - China being one of them that are very happy to help out with business arrangements,” added Clarke.

Nevsun shares rose 3 cents to $2.15 today on AMEX.

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Some impressive gold finds there. I guess the issue is the stability of eratria as to whether investors jump in.
africa sounds like it has a wealth of natural resources but high sovereign risk.

Theres Gold in Eritrea?/Ethiopia....seriously.:dunno:
Sth Africa, Ghana, Cote d'Ivoire, Congo i can beleve...Eritrea/Ethiopia
jezz i dont know.

Drill results please.

Check out these monster grades/intersections with a resource due by the end of the year. If you have no aversion to risk, slip this one into the portfolio.

Hole From (m) To (m) Interval (m) Gold (g/t)
ZARD073 105-108 3 49.05
ZARD075 31-61m 30m 38.01
ZARD075 69-86m 17m 13.79
ZARD081 37-47m 10m 76.82
ZARD081 65-69m 4m 28.71
ZARD083 38-44m 6m 69.50
ZARD084 96 -102m 6m 17.46