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| PROJECT OVERVIEW |
Sheba Exploration (UK) Plc
Sheba Explorations gold and base metal exploration projects are all located in the regional
state of Tigray within the area of the Northern Ethiopia Goldfields. This part of the
country has been chosen for its numerous gold occurrences, the great majority of which
have not been explored. On Sheba's tenements, gold mineralisation occurs as orogenic
deposits associated with quartz veins and altered greenschist grade rocks, frequently near
contacts with late tectonic granite stocks and dykes. The mineralisation so far
encountered is disseminated or localised in sub-parallel, or en echelon, vein/shear mineral
systems enclosed in extensive carbonate alteration haloes. Gold in soil anomalies of
significant area and concentration have been discovered many of which have been
followed up by rock sampling in trenches and pits.
state of Tigray within the area of the Northern Ethiopia Goldfields. This part of the
country has been chosen for its numerous gold occurrences, the great majority of which
have not been explored. On Sheba's tenements, gold mineralisation occurs as orogenic
deposits associated with quartz veins and altered greenschist grade rocks, frequently near
contacts with late tectonic granite stocks and dykes. The mineralisation so far
encountered is disseminated or localised in sub-parallel, or en echelon, vein/shear mineral
systems enclosed in extensive carbonate alteration haloes. Gold in soil anomalies of
significant area and concentration have been discovered many of which have been
followed up by rock sampling in trenches and pits.
The rocks in the NE goldfield area form part of the Arabian-Nubian Shield. This is a Middle
to Upper Proterozoic aged, accreted volcanic island arc terrane. It is generally made up
of older volcanic and sedimentary rocks which have been intruded by younger pre- to syn-
to post tectonic, mainly felsic intrusives. This belt straddling the Red Sea is well known
for the existence of numerous volcanogenic massive sulphide, base metal deposits in
Saudi Arabia, Eritrea and Sudan. Exploitation of gold in the region dates back to
Pharaonic times. However, despite the excellent potential of the region for mesothermal
gold mineralisation, exploration has not been as pervasive as in other gold-rich regions of
the world. In the case of the NE goldfield, which has seen limited exploration, there is still
considerable potential to locate economic concentrations of gold mineralisation in
favourable host rocks.
At Una Deriam EEL the company has defined a five kilometre long gold soil anomaly.
Mineralization occurs in the wall rock to quartz vein swarms. Drill intercepts include 21m
@ 1.5 g/t gold from 6-26m below surface and 10m @ 2.0g/t gold from 11m below surface.
Metallurgical studies show that the mineralized rock is amenable to gravity concentration
and cyanidation with recoveries in the range 79-83%. An extension to the Mereto gold
anomaly is being defined within the southern part of Una Deriam. Anomalies have been
encountered in soil up to 660ppb and in rock up to 13 g/t gold. At Shehagne EEL the
company has traced a 2.8 kilometre long gold soil anomaly. Gold mineralization occurs in
high grade quartz veinlets and surrounding host rocks. Trench intersections include 14m
@ 4.3 g/t and 12m @ 1.7 g/t, while recent drill intercepts include 3m @ 2.6 g/t, 5m @ 1.7
g/t and 4m @ 1.6 g/t. At Winibo EPL bedded mineralisation averaging 0.61% copper has
been traced in outcrop for a distance of approximately 4.5km along strike.
The North Eastern Goldfield, within which the Una Deriam EEL is situated, is located
about 55km NNWof Mekelle, the regional capital of Tigray Province. Mekelle lies 500km to
the north of Addis Ababa (over 750km by road) and there are regular flights between the
two cities. A newly completed tarred road connects Mekelle with the town of Wukro,
about 35km to the north. Thereafter gravel surfaced roads of good condition provide
access to the project areas via the village of Megab, where Sheba has a store, and the
small town of Hawzen just to the SE of the project area. New access is currently being
built up within the Una Deriam EEL through an initiative of hand-built roadways. This is a
government sponsored work for food initiative and this is enabling vehicular access to
many sites not previously accessible by vehicle. A newly constructed airport building and
expanded runway has been open at Mekelle for a few years now and it is understood that
in time it will achieve international status. A huge new project in the region is the
construction of a major dam for hydro-electric power generation. This is a two staged
project, initially 5 years for the 300MW hydro- electric scheme to be followed by a second
stage of canal construction for irrigation purposes in the region. Currently electricity is
being brought into the project area via a 15KV, 3-phase line which can deliver up
to1.2MW. This line recently reached Megab where a transformer has been installed. From
the above, it is clear that there is reasonable infrastructure in the project area.
to Upper Proterozoic aged, accreted volcanic island arc terrane. It is generally made up
of older volcanic and sedimentary rocks which have been intruded by younger pre- to syn-
to post tectonic, mainly felsic intrusives. This belt straddling the Red Sea is well known
for the existence of numerous volcanogenic massive sulphide, base metal deposits in
Saudi Arabia, Eritrea and Sudan. Exploitation of gold in the region dates back to
Pharaonic times. However, despite the excellent potential of the region for mesothermal
gold mineralisation, exploration has not been as pervasive as in other gold-rich regions of
the world. In the case of the NE goldfield, which has seen limited exploration, there is still
considerable potential to locate economic concentrations of gold mineralisation in
favourable host rocks.
At Una Deriam EEL the company has defined a five kilometre long gold soil anomaly.
Mineralization occurs in the wall rock to quartz vein swarms. Drill intercepts include 21m
@ 1.5 g/t gold from 6-26m below surface and 10m @ 2.0g/t gold from 11m below surface.
Metallurgical studies show that the mineralized rock is amenable to gravity concentration
and cyanidation with recoveries in the range 79-83%. An extension to the Mereto gold
anomaly is being defined within the southern part of Una Deriam. Anomalies have been
encountered in soil up to 660ppb and in rock up to 13 g/t gold. At Shehagne EEL the
company has traced a 2.8 kilometre long gold soil anomaly. Gold mineralization occurs in
high grade quartz veinlets and surrounding host rocks. Trench intersections include 14m
@ 4.3 g/t and 12m @ 1.7 g/t, while recent drill intercepts include 3m @ 2.6 g/t, 5m @ 1.7
g/t and 4m @ 1.6 g/t. At Winibo EPL bedded mineralisation averaging 0.61% copper has
been traced in outcrop for a distance of approximately 4.5km along strike.
The North Eastern Goldfield, within which the Una Deriam EEL is situated, is located
about 55km NNWof Mekelle, the regional capital of Tigray Province. Mekelle lies 500km to
the north of Addis Ababa (over 750km by road) and there are regular flights between the
two cities. A newly completed tarred road connects Mekelle with the town of Wukro,
about 35km to the north. Thereafter gravel surfaced roads of good condition provide
access to the project areas via the village of Megab, where Sheba has a store, and the
small town of Hawzen just to the SE of the project area. New access is currently being
built up within the Una Deriam EEL through an initiative of hand-built roadways. This is a
government sponsored work for food initiative and this is enabling vehicular access to
many sites not previously accessible by vehicle. A newly constructed airport building and
expanded runway has been open at Mekelle for a few years now and it is understood that
in time it will achieve international status. A huge new project in the region is the
construction of a major dam for hydro-electric power generation. This is a two staged
project, initially 5 years for the 300MW hydro- electric scheme to be followed by a second
stage of canal construction for irrigation purposes in the region. Currently electricity is
being brought into the project area via a 15KV, 3-phase line which can deliver up
to1.2MW. This line recently reached Megab where a transformer has been installed. From
the above, it is clear that there is reasonable infrastructure in the project area.
