Ethiopia_scr

EthiopiaEstablished 1835 A supplement to Mining Journal Allana Potash Altau Gold EMDSC MIDROC Gold Nyota Minerals Stratex is increasing at an attractive price. platinum. The mine has been operating since 1990 with a pilot plant producing about 20t/y. with this industry as the backbone of Ethiopia’s industrialisation in the next GTP. UK © Aspermont UK 2011 An Aspermont company Published in January 2011 by: Aspermont UK. The deposit is both a weathered crust ore (the top 60m) with proven reserve of 2. The country lies in the Horn of Africa. the ministry has developed and started implementing efficient and transparent service delivery. The consumers of the soda ash are local caustic soda factories. Although the deposit has still contained 12t of platinum. the Ethiopian xeric grasslands and shrublands. The chance of discovering a world-class deposit.000m. copper. Only 10-15% of the land is presently covered by forest as a result of rapid deforestation over the past 30 years. among other mineral commodities. Of the total land area.9%. lead.1 to 1. bordered to the north and northeast by Eritrea. Albert House. The demand for metallic and industrial minerals. This mineral potential. The history of gold mining in Ethiopia dates back to biblical times.5t/y. definitely magnifies the possibility of discovering economic deposits at a high rate of success. Ethiopia has a high central plateau that varies from 1. The gold being mined by artisanal miners nationwide is estimated at more than 3. Ethiopia has never been colonised. The plant is producing about 5. to the east by Djibouti and Somalia. occurrences and deposits have been discovered in different parts of Ethiopia. tantalite-colombite. molybdenum and potash. The territory can be traced back to the Aksumite Kingdom of the first few centuries before Christ. Sincerely yours. western and northern greenstone belts. only about a fifth is under cultivation. The economy revolves around agriculture (the country is one of Africa’s leading coffee producers). The Great Rift Valley splits the plateau diagonally. as well as soap and detergent manufacturers. zinc. A substantial number of placer gold deposits were discovered and mined by semi-mechanised and artisnal methods in the Adola. Of the remainder. where the metallic and industrial mineral resource is untapped. on the other hand. which rises from Lake Tana). is also challenging. Ministry of Mines. Therefore. However. Its current output rate of tantalite concentrate is over 210t/y. Ethiopia – Mesozoic sediments in foreground.36bn Ethnic groups: Amhara and Oromo are the dominant ethinc groups. The mining sector envisages generating more than 10 times the current amount of foreign currency contribution. as of mid-2010. Furthermore. although the amount of potentially arable land is larger. it was privatised in early 1998. the mineral potential of Ethiopia has not yet been fully explored.533m. Merthyr Tydfil. we are pleased to welcome and encourage all potential investors to participate in the mineral-sector development of the country.ETHIOPIA Ethiopia facts Capital: Addis Ababa Area: 1.com Website: www. Arabian-Nubian Shield basement rocks in centre and Tertiary volcanic intrusions in background Photo: Stratex CONTENTS Introduction / Mining / Geology Gold and base metals in the north Gold output growing Mining legislation Platinum mineralisation Profiles: Allana Potash EMDSC MIDROC Gold Nyota Minerals Stratex 2-4 5 9 11 14 6 8 10 12 15 E Supplement editor: Chris Hinde Design and production: Tim Peters Geology and mining sections by: Gebre Egziabher Mekonen. Head of the Mineral Licensing and Administration Department. Sinknesh Ejigu 2 Mining Journal special publication – Ethiopia . the Ministry of Mines of the Federal Democratic Republic of Ethiopia has established competitive legal and fiscal packages and a clear strategy to maximise the development of mineral resources in the country within the context of the free-market economic policy and the five-year (2011-16) National Growth and Transformation Plan (GTP).6t/y of gold and development works are under way to develop the underground resource. English is widely spoken Proud independence Typical scenery of northern Tigray region.com THIOPIA is not only Africa’s oldest independent country. with a number of rivers crossing the plateau (notably the Blue Nile. January 2011 Message from the Minister of Mines Dear Investors. Only very few are developed and being mined at present. it is one of the oldest in the world. construction and gemstones. Average production from the open pit is 3. Opened in the late 1980s.400t of tantalum pentaoxide and 2. and. Ethiopia Printed by Stephens & George. To this end. coupled with the attractive and conducive investment environment. manganese.393t Ta2O5 and 2. and primary ore with proved reserve of 2. industrial. Between the valley of the Upper Nile and Ethiopia’s border with Eritrea is a region of elevated plateaus from which rise the various tablelands and mountains that constitute the Ethiopian Highlands. 1 Singer Street London EC2A 4BQ Tel: +44 (0)20 7216 6060 Fax: +44 (0)20 7216 6050 E-mail: [email protected] Nb2O5. Soda ash is being mined at Lake Abiyata in the rift valley about 200km south of the capital. East of the highlands towards the Red Sea is a strip of lowland semi-desert. Ethiopia is endowed with various types of metallic minerals such as gold.2 million km2 Population: 73 million GDP: US$77.000t/y of soda ash at semi-industrial scale. apart from a five-year occupation by Mussolini’s Italy.290-3. the highest mountain reaches 4. a large portion is put to pasture. the mine closed for a long time due to a recovery issue. to the south by Kenya. Artisanal miners are also exploiting a number of placer gold occurrences in different parts of the country. A placer gold deposit that could be mined by mechanised mining was recently delineated and licensed to a private company within the southern. and to the west and southwest by Sudan. Placer Platinum has been mined since 1926 at Yubdo in the western greenstone belt.mining-journal.300t of niobium pentaoxide. The reserve at Lake Abiyata and the surrounding lakes exceeds 460Mt of sodium carbonate at salt concentration ranging from 1. southern greenstone belt. A state-owned enterprise is operating on an open-pit columbotantalite mine at Kenticha in the Adola belt. which in turn relies on rainfall. MINING Among various minerals such as metallic. A large-scale primary gold mine has so far been found at Lege Dembi. 1:2. salt has been mined in Ethiopia Tana for a long time.(1996) Geological map of Ethiopia. but the short (belg) rains occur from February to April. ranging from 2. Mid Tertiary-Quaternary Metavolcano-sediments Undifferentiated sediments felsic rocks Granite-tonalite gypsum and pumice as a raw Metaultramafic-mafics Early Tertiary sediment material for cement production. basement. North. granodiorites. roads. the conditions are tropical and diseases such as malaria are prevalent. sedimentary rocks and half by Cenozoic volcanics and paragneises assemblages. About a quarter chlorite. etc). Ethiopia possesses huge salt Detailed geological reserves. gneiss and volcanic rocks (ignimbrite. a large number of investors are licensed to Addis Ababa produce salt from Lake Afdera. The weather is usually sunny and dry. and approved by the House of People’s Representatives.200-2. amphibolite. Local industry is also mining Paleozoic Rocks Cenozoic Rocks High-grade Precambrian Precambrian and utilising silica sand. Kaolin. basic dykes. rayolite. sandstone. This election was last held in October 2007. dry climate producing semi-desert conditions.600m. Lake Traditionally. Apart from the production of salt by locals. President: Girma Woldegiorgis (above left) (since October 2001) Prime minister: Meles Zenawi (above right) (since August 1995) Under the constitution of December 1994. rocks have undergone poly-phase deformations and considered to be older than the volcano sedimentary Geology: Modified from Mengesha et al.200m. The Prime Minister is designated by the party in power following legislative elections. a Council of Ministers is selected by the prime minister. Political system Agriculture is the country’s largest industry for inward investment. The country lies wholly within the tropics. The dimension stones being mined in different parts of the country include marble. In the deep valleys of the Tekezé and Abay. but its nearness to the equator is counterbalanced by the elevation of the land. the air is cool and bracing in summer. second edition.000. amphibolites. Minerals such as sand.000 January 2011 Mining Journal special publication – Ethiopia 3 . while flowers and coffee are key exports Photos: Bloomberg News Despite a number of occurrences in the country there were no legalised gemstones mines until recently. quartz and feldspar are also being mined from the Adola belt in southern Ethiopia by government enterprise. dams and bridges. On the uplands. South. Eastern regions of the country. feldsphatic. etc) with associated mafic to felsic intrusives Linear belts of mafic and ultramafic rocks are of the country’s landmass is occupied by Precambrian (such as granites. The Somali Region and the Danakil lowlands in the Afar Region have a hot. Precambrian rocks and related intrusions metamorphism (amphibolites to granulite metamorscoria. clay. a quarter by Mesozoic gabbro and the like) and high-grade orthogneises and marking the contact between the two assemblages. commonly confined to major shear zones often metamorphic rocks. and the big (meher) rains from mid-June to mid-September. limestone. pumice and scoria These rocks are found in four major regions of phism). These crystalline basement Gneissic terrains (Lower Complex) are generally sediments. crushed stones. with the climate being temperate on the plateau and hot in the lowlands.ETHIOPIA Varied climate The climate of Ethiopia and its dependent territories varies greatly. also play a significant part for the construction Ethiopia: west and south-western. aggregates. At Addis Ababa. and in winter very bleak. The Phanerozoic Intrusives Early-Mid Tertiary basalt Sandstone and tillites Undifferentiated gneisses and schists Gabbro nation’s factories are using Upper Tertiary-Quaternary Low-grade Precambrian basalt Mesozoic Rocks Diorite high-quality limestone. and generally in places below 1. both a rock salt of the evaporite map of Ethiopia sequence in the Dallol salt plain and in the brine lakes of the Afar Depression. range from Precambrian to recent. The consumers of the products are the Awash-Melkasa Aluminium Sulphate and Sulfuric Acid Factory and the Tabor Ceramics Factory. In the past few years a number of local and foreign companies have gained licenses to explore for opal in the central and peridote (olivine) in the southern region. gravel. diorites. sedimentary assemblages including the island arc and The Precambrian metamorphic rocks comprise dismembered ophiolites assemblages are commonly GEOLOGY litho-tectonic low-grade volcano-sedimentary termed as Upper complex of the Precambrian Ethiopia is underlain by geological formations that assemblages (of mica. the maximum temperature is 26°C and a minimum 4°C. The President is elected by the House of People’s Representatives for a six-year term (and is eligible for a second term). Local and foreign companies are also licensed to produce dimension stone. however. granite. and Thick successions of the low-grade metavolcanoindustry on buildings. Western Ethiopia. The sedimentary sequence represents the Jurassic transgression of the Indian Ocean from the east (in the Ogaden) towards north and west and then subsequent regression to the sea. producing about 4t/y of gold doré at present. Golden Star.com) Acid pools within salt accumulations at Dallol hot springs. nickel and platinum minerals have the most potential for development of the mineral sector. Two major transgression-regression cycles took place during the Mesozoic era. in the north-east.and base-metal minerals. BHP Billiton has also been prospecting the possibility of potash and related minerals potential areas in the same Denakil depression sedimentary successions for the last few years. soda ash. Rift Resources and Tan Range have explored some areas of the known gold occurrences. as well as other exploration companies for precious. Potash exploration on the Denakil salt plain This article has been prepared by Gebre Egziabher Mekonen Wube. The Mesozoic rocks composed of the major stratigraphic sediments of Triassic sandstone (Lower or Adigrat sandstone). Canada’s Allana Resources. mainly basalts. The flood basalt volcanism culminated by the formation of alkaline basaltic shield volcanoes some of which rise above 4. Some local and Chinese companies are also exploring near the known tantalum-niobium deposit in the Kenticha greenstone belt. Jurassic Limestone of Antalo group and the Cretaceous (upper) sandstone with intercalations of mudstone and marl. Following this. reported that gold. MIDROC owns and operates the Legadembi gold mine. Some of these include: ■ MIDROC Gold mine: exploration and development (E&D) of new industrial-scale mega-shear zone-hosted and skarn-type gold and associated metals deposit in the metekel (western) greenstone area. which is similar to best practices of the well-known mining industry countries. Quaternary sediments occur throughout the country. ■ Nyota Minerals (Ethiopia): focused on E&D of syanite-hosted primary gold project at Tulu Kapi and other primary gold occurrences exploration in Wollega. According to different studies. the Ethiopian government enacted a revised mining law. The Precambrian rocks of Ethiopia lie at the unique position of the northern part of the Mozambique belt and southern tip of the Arebonubian shield. about 500km south of Addis Ababa. ■ ASCOM Mining plc: gold and base-metals exploration in the western greenstone belt. As a result of epierogenic uplifting of the Afro Arabian (East Africa) basement (and their transgressive sediments) due to mantle plume. Ministry of Mines (e-mail:gebremw@yahoo. known as Trap series of Ethiopia.Mesozoic sediments Paleozoic is poorly represented with the exception of well-documented permo-Triassic Karoo sedimentary rocks at the base of Ogaden basin and the presumed Ordovician glacial deposits in northern Ethiopia. Danakil Depression and in the lower Omo River Valley. The Denakil depression is the world’s lowest point: 120m below sea level.ETHIOPIA Mining law has spurred foreign private investment Historically. ‘A Proclamation to Promote Sustainable Development of Mineral Resources’. G and B Central African Resources Ltd (a BVI firm) and India’s Saink Potash are focused on the E&D of a previously explored Dallol potash property in the Danakil Depression of the Afar National Regional State. Others include: A base-metals site in the northern region assemblages. In the past few years. representing over 9% of global tantalum-niobium ore supply. in joint venture with China’s Donia Beijing. As for industrial minerals. in July 2010. Highland Ethiopia is underlain by Tertiary volcanics.000m above sea level on both the western and south-eastern plateaus of Ethiopia. It is also actively involved in exploration projects near the known Legadembi mine and developing the underground lode-type gold deposits at Sakaro locality in the goldfield of southern greenstone belt. Head. The stimulus for this E&D work is the result of the mining legislation that had been initially promulgated in 1993. and the overall positive investment climate in Ethiopia. Ethiopian Minerals Development Share Co is also producing tantalum-niobium concentrates at Kenticha pegmatite-bearing mafic-ultramafic belt and exporting 210t/y. Tertiary as well as Quaternary volcanics and sediments characterize the rift valley. and to be transparent and equitable in using the mineral resources of the country. In the past 20-30 years. tantalum. Canyon Resources. Emerging Africa Gold. local and international companies have undertaken early and advanced explorations. came through crustal fissure and brought formations of continental flood basalt province. to make the minerals sector more favourable for foreign direct investment. and some others by joint study projects. ■ Aberdeen International Inc: exploring for primary gold in the western greenstone belt and also gold and base metals in the northern greenstone belt. ■ Other junior international and local companies are carrying out aggressive exploration works. is conducting base-metals resource estimation in western Tigray as well as further exploration of gold and base metals in a number of target areas within northern greenstone belt. few companies have carried out systematic exploration in Ethiopia for the last four to five decades. ■ Stratex International: exploring for epithermal gold deposit system in the north-eastern rift volcanics and has found bonanza-type gold-bearing alteration zones and plans to test by drilling for its continuity in the current quarter. companies including Ashanti. ■ Sheba Exploration Plc a British registered company operating in the northern greenstone belts of Ethiopia and others. north-eastern Ethiopia January 2011 4 Mining Journal special publication – Ethiopia . ■ Local company Ezana Mining Development plc. especially potash and related evaporite minerals. Afar region. Thick Mesozoic sedimentary sequence is extensively exposed in eastern part of the country extending as far as central and northern Ethiopia beneath the tertiary volcanic and overlain un-conformably on the basement rocks. enormous quantities of basaltic magma (late Mesozoic) generated in the lithosphere. Tertiary sediments are known in the Ogaden. Mineral Licensing and Administration Department. Palaeozoic. potash. most of which are UNDP-funded. The requirements for licensing and the time frame for awarding a licence right are also relatively simple and quick depending on the number of applications that need processing in one given time – provided that the applicant fulfils the minimum requirements as stipulated in the mining legislation. JCI. Cenozic volcanic and sediments The Tertiary to Quaternary geology of Ethiopia is related to the evolution of the East African rifting. VMS mineralisation and orebodies were recently found in the Adi Nebried Block. Both companies plan large-scale operations. trenching and geophysical survey in selected areas. They are characterised by distinct cycles of magmatic activities separated by ophiolite belts analogous to the situation in Arabia. The Nubian Shield was divided into five tectonic terranes in northern Tigray (from west to east: the blocks of Shgraro. excluding the newly discovered volcanogenic massive sulphide (VMS) deposits in northern Ethiopia.3 billion in 2010. Yemen and Jordan. Chila and Adwa). Mining has become the second-largest industry for inward METALLOGENETIC SETTING Regionally. EXPLORATION HISTORY In 1970 and 1972. head of Mineral Operations Department at the Ministry of Mines). Sudan. Ezana Mining plc. Adi Nebried. The green schists represent normal volcanic sedimentary sequences in the northern Ethiopia. and detailed exploration that included geological mapping. platinum. This Horn of Africa nation. Eritrea. with super-crustal and mid-crustal rocks of similar age extending to southern Madagascar. Currently. potash and tantalum. copper. and is the SW extension part of the Asmara zone. In the past six years. there are at least 60 VMS-type deposits presents in the Arabian-Nubian shield. which contains deposits of gold. exported US$281 million of gold in the fiscal year to July 7. being composed of granitoid-greenstone belt terranes and mid-crustal gneissic terranes.85-0. Two companies are at the centre of these efforts: Ethiopian-born Saudi billionaire Sheikh Mohammed al-Amoudi’s MIDROC Gold Mine plc. and also underlie parts of Egypt. silver. These lie on either side of Red Sea.50Ga) Arabian.altaugold.Nubian Shield.ETHIOPIA Gold and base metals in the northern greenstone belt Gossan ore (Terer deposit) M The mining scene in Tigray INERAL resource development is playing a key role in the development of the Ethiopian economy. and its local partner. Tigray Region Tigray Region is the northernmost of Ethiopia’s nine ethnic regions (kililoch). Its capital is Mek’ele. Tigray is bordered by Eritrea to the north (independent from Ethiopia since 1993). the Afar Region to the east. Saudi Arabia. 2010 (according to Gebre Egziabher Mekonen. Further exploration works did not take place from 1974 to 1993 due to the civil war. the northern Ethiopia area is part of Neo-Proterozoic (0. and Perthbased Nyota Minerals Ltd. the average growth in Ethiopian GDP has investment after agriculture. exceeded 10%. Sudan to the west. according to Beijing Donia Resources Co.com January 2011 Mining Journal special publication – Ethiopia 5 . Adi Hageray. To maintain this development trend. Work during 1994-95 included regional and follow-up geological and geochemical surveys in most areas. and the Amhara Region to the south. The terranes represents the northern sector of the East African Orogen. and investment in the country’s mining industry has surged from less than US$100 million in 2003 to an accumulated US$1. “The Tigra region seems likely to become the centre of the country’s base and preciousmetals exploration effort in the future” Gold and Copper targets in Ethiopia www. exploration activities (regional mineral prospecting works including soil sampling and rock sampling with detailed geological and geochemical surveys) in northern Ethiopia were carried out by the Ministry of Mines. where the metallogenic tectonic settings is very similar to those of Debarwa Cu-Zn deposits in Asmara VMS-type metallogenic zones. There is “great potential” for discovering base metals (associated with gold and silver) in northern Ethiopia. the government requires further exploration and development of the country’s resources. 52 154. 2010 EXPLORATION PROGRAMME Allana embarked on a comprehensive exploration programme in 2010 and has constructed a modular camp.70 17.000m of drilling has intersected robust grades. ■ Near-surface (shallow-depth) potash mineralisation (within 50m of surface). Hole DK-10-04 Significant drill results.40 8 00 760. confirming the historic resource.00 37. HIGHLIGHTS: ■ 161km² concession in the Danakil Depression covering an extensive evaporite basin.com PROPERTIES Dallol Potash Project Allana Resources has the rights to acquire four potash concessions in Ethiopia’s north-eastern Danakil Depression. Allana mobilsed a water drill to begin delineating sources of fresh water for future operations. Allana has executed an MoU securing a strategic partner from China to contribute 35% of the mine capex (estimated at US$285 million) in return for an off-take agreement. completed approximately 5. President and CEO E-mail: fabasov@allanapotash. At this point.15 150. amenable to solution mining. and to elevate Drilling on confidence in the resource the salt to Indicated status. including only upper Sylvinite Member.2Mt of potash mineralisation (Sylvite and Kainite) with a composite grade of 20. Strategically located: 100km from Red Sea and easy access to the emerging markets of India and China.00 142. Over 5. a bankable feasibility study will be launched.70 17. totaling 161km2.10 151.9Mt grading 61.10 2.8% KCl.00 34.00 214.80 152.48% KCl on adjacent property.80 136.com Contact: Farhad Abasov. The potash mineralisation in the Danakil Depression is well known.87 585.75 220.30 567.20 9.35 744.50 25.15 2.8% KCl on 10% of the property. Allana advanced the project through exploration drilling and geophysical studies. Drilling will continue into 2011 and an additional 6 Mining Journal special publication – Ethiopia January 2011 .2Mt at composite grade of 20.50 748.40 32.90 776.30 580. An initial review of the seismic data has identified numerous reflectors some of which may represent the potash horizon. Based on the Parsons’ work. or horizon.10 1.7% kainite. plain.00 2.42 144.04 8. Recent positive drill results indicate strong potential to boost the potash resource. ■ Potential for solution or open-pit potash mining. resulting in 171.20 23. solar evaporation and geothermal energy.45 585. The US-based Ralph M Parsons company drilled nearly 300 drill holes from 1958-1967 and even sank a shaft to conduct underground mining. Allana is compiling proposals for this work from leading potash technical firms and hopes to award the BFS at the end of March this year. with small-scale potash mining carried out intermittently from the early 1900s. and recent drilling in the centre of the evaporite basin indicates strong potential to increase the potash resource substantially.65 5.80 161.40 746.20 24.80 6. inferred kainitite resource of 73.000m is planned on the newly acquired Haro concession and in the centre of the evaporite basin.95 19.50 17. Significant drill results are presented in the table and on the map above.30 3.40 495. combined inferred mineral resource 105. The property has an inferred mineral resource of 105.10 To (m) Width (m)* KCI (%) 117. Canada Tel: +1 416 309 2691 Fax: +1 416 861 8165 Website: www.00 4.30 6. Allana property: inferred sylvinite resource of 31. Low capex because of shallow depth (50-100 m) to potash. ■ MOP (muriate of potash) and SOP (sulphate of potash) production are feasible. Toronto. Ontario. Proven potash-bearing horizons drilled by Ralph M Parsons company in the 1950-60s.10 150. Low operating cost environment because conducive to solar evaporation.70 22.51 145. Late last year.60 9.25 576.3Mt grading 25.20 9. ■ ■ ■ ■ ■ ■ Allana’s project has been previously explored.00 746.00 13. where historic exploration has been limited. ■ CONTACTS Allana Potash Corp 65 Queen Street West. This data will provide insight as to the extent continuity of the potash horizon throughout the evaporite basin and assist in the location of additional drill holes. ■ Unique environment that may provide for low-cost production utilising solar evaporation and geothermal power. The Dallol Potash Project area lies about 100km from the Red Sea coast.8% KCl. with a composite grade of 20. Allana has completed a NI 43-101-compliant technical report for the three main concessions highlighting several unique advantages of this project: ■ An inferred mineral resource of 105. and exploration drilling in virgin parts of the basin has identified thick sequences of potash.2Mt. which the company believes will be completed by the end of March 2012.00 17.00 19.25 152. ■ Some 16 drill-holes immediately on Allana’s property but 90% of the project is unexplored. The Kainitite Member is up to 13m (average 6m) and averages 62% kainite.30 567.90 498.30 17. Potash occurs primarily as both sylvite (KCl) and as kainite (KMg(SO4)Cl*2.allanapotash. In 2010.94 155. PATH FORWARD Allana is continuing to drill on its potash property and aims to have revised resource estimate by the end of the first quarter of 2011. varies in width up to 11m (average of some 3m) and grades up to 35% KCl. the Sylvinite Member.00 30.4% sylvite.00 28. Dallol Potash Project Hole DK-10-01 including DK-10-02 including DK-10-03 including DK-10-04 including including DK-10-06 including including DK-10-07 including *drilled width From (m) 110.80 114.35 2. The unique environment suggests low capital and operating expenditure may be achievable using solution mining.PROFILE Allana: developing a world-class potash project A Aerial view of the Allana camp showing berm and buildings LLANA Potrash controls potash concessions covering 161km2 in the Danakil Depression.60 10.3Mt grading 32.000m of diamond drilling and 45km of 2D seismic surveys.75H2O).65 116. Positive results from the drilling indicate strong potential to increase the resource on the property. In 2001. The RC drilling operation intersected VMS and disseminated sulphide mineralisation that produced geochemical and geophysical anomalies within the felsic meta-volcanic rocks. This has included extensive exploration activities (incorporating high-resolution QB image purchasing and interpretation).ETHIOPIA Far left: the location of VMS deposits in the ArabianNubian Shield (Barrie. further exploration not done for VMS Cu-Zn-Au-Ag orebodies. The surface trenching has indicated there is about 3t of gossan gold. an airborne electromagnetic geophysical survey (at a scale of 1:50. soil and rock chip sampling from regional to detailed-scale work in Terer. this is the SW extension of the Terakimti VMS mineralisation. 57: Adi Nefas. based on encouraging prospecting results. In 2004. Ezana started reverse-circulation (RC) drilling at Terer. Extensive geochemical anomalies and geophysical IP and TEM anomaly have been outlined in northern Tigray. Most exploration work was suspended from 1999 until 2001 during the border conflict with Eritrea. 60: Adi Rassi Left: regional tectonic block distribution map for northern Ethiopia This was conducted by the Geological Survey of Ethiopia. on the western side of the Terer deposit. and are worthy of more exploration. Terer deposit) stream sediment sampling and irregular soil sampling. The test diamond drilling has confirmed that the VMS copper orebody is more than 300m long along strike. and there is a structurecontrolled gold mineralisation in the Mai Hanse area. 2007) – 53-56: Bisha Deposit Group. However. This region seems likely to become the centre of the country’s base and precious-metals exploration effort in the future. Mai Hanse and other areas in 1996-1998. Indeed. Since March 2007. Beijing Donia Resources has established three JV companies with Ezana for conducting exploration in northern Ethiopia. A pre-feasibility study is ongoin but the estimated total resource of equivalent copper (Cu+Zn+Au+Ag) is about 100. Three VMS type Cu-Zn-AuAg deposits were discovered in the northern Ethiopia region. and outlined several magnetic anomalies. and test drilling has Primary sulphide ore (Terakimti deposit) Article based on paper by Sicai Zhu of Beijing Donia Resources Co January 2011 Mining Journal special publication – Ethiopia 7 . These include Nefasit and Hamlo. there are other VMS mineralisation zones in this region. the deposit consists of two VMS orebodies: Adi Ekele and Mai Argab. The on-going exploration is to enlarge the metal resource of Adi Bladie deposit. with an average thickness of 8m and 1. Primary sulphide ore (Mai Argab section. geophysical surveys of ground magnetic. IP and TEM.000t. This included stream sediment.8% Cu grade. according to Beijing Donia. with an average thickness of 12m and the dip extends to 150m. it has been predicted that the total base-metal resource in northern Ethiopia will be more than 2Mt. different scales of geological mapping. Further drilling has been planned after the ground gravity and TM surveys are completed to enlarge the base and precious metals resources in Terakimti area.000) was conducted in the 341km2 area. Terakimti Cu-Zn-Au-Ag deposit Located 29km northeast of Shire in northern Tigray. VMS DISCOVERIES At least three VMS-type Cu-Zn-Au-Ag deposits have been discovered in the northern Ethiopia area. 58: Emba Derho. Adi Bladie Cu deposit Located 25km northwest of Shire in northern Tigray. and trenching and test diamond drilling. the Terakimti VMS mineralisation is parallel to the Terer zone. confirmed that the primary VMS zone is 800m along strike length. 59: Debarwa. and that gold resource will be over 50t. “much potential for base and precious metals resources in this region”. and will eventually meet the development needs of Ethiopia. This indicates. “Mining has become the second-largest industry for inward investment after agriculture” METALS POTENTIAL In addition to the three VMS deposits above. Ezana Mining plc (a local exploration company) subsequently conducted intensive exploration. Terer Cu-Zn-Au-Ag deposit Located 57km northeast of Shire in northern Tigray (near the border between Ethiopia and Eritrea). process plant.et or zerhabt@ethionet. It was established when its predecessor. property administration and human-resource development. EMDSC’s main structure comprises: ■ Three core units: Kenticha Mineral Production Process. EMDSC also acts as a consultant. and feldspar and supplying these raw materials to local industries. Mineral Exploration and Evaluation process and mineral sales. ■ Two service units. The rated design capacity of the new metallurgical plant will be 300-350t/y tantalite-columbite concentrate. evaluation and development. quartz. geophysical and surveying equipments and fully furnished laboratories. of credentials to our company (see address. was dissolved and restructured into four enterprises in August 1995. K Salt. laboratory analysis. CONTACTS Ethiopian Mineral Development Share Company (EMDSC) Bole Sub City (Kefle ketema. especially where mineral occurrences were previously reported. specify the raw materials and We will send to them the terms of reference consumables. 550km south of Addis Ababa. angle and azimuth).9%). One of EMDSC’s dolomite mining sites Request for expression of interest EMDSC needs to set up a metallurgical process plant as an integral part of its Kenticha tantalite-columbite concentrate production factory. paints. Interested applicants should submit their application with non-returnable CVs and copies with adequate purity. and producing value-added materials from tantalite concentrate.et 8 Mining Journal special publication – Ethiopia January 2011 . EMDSC produces a good-quality tantalum concentrate. Their uses include soap. quartz. Its laboratory facility includes atomic absorption spectrometry. The company employs more than 560 at its sites. topographic surveying for other companies in the sector. bentonite. Near St Gabriel Hospital PO Box 2543. K2NbF7. In the Arero and Wachile areas (300km west of Kenticha pegmatite deposit). pesticides and glass. dolomite. industrial minerals (kaolin. Sn. supplied for export. Subsurface drilling is in progress. FUTURE PROSPECTS EMDSC plans to increase tantalum output through successive expansion projects into large-scale production. The Kenticha tantalite mine and processing plant southern Ethiopia. wedging accessory to redirect boreholes. The geophysical system includes ground surveying (magnetic. Nb. red garnet are important). It has also strengthened its marketing and promotion activities to maximise sales revenue of industrial minerals. Ethiopian Mineral Resources Development Corp (EMRDC). SERVICES EMDSC owns core-drilling machines. The geophysical study team provides services for clients carrying out mineral exploration works locally. fire assay. MINERAL EXPLORATION EMDSC is involved in prospecting and exploration for precious metals (gold and platinum). It subsequently changed into a public company. and x-ray fluorescence (XRF) systems. It is one of the world’s top five producers of columbotantalite concentrate. Ethiopia Tel: +251 (0)116632226 or 2290 / (0)116187478 Fax: +251 116187143 / 116632291 E-mail: eemindut@ethionet. and supervise the construction of the (TOR) and instruction to bidders immediately. EMDSC would like to hire an experienced professional right) to participate in this job within 30 days firm that can design the process flow sheet. rare metals (Ta. Simplified geological map of Kenticha pegmatite deposit One exploration team has discovered additional rare metal-bearing pegmatite deposits in northern and southern part of Kenticha tantalum deposits areas. gold and silver associated mineralisation. EMDSC says it is producing excellent-quality kaolin. EMDSC is accountable to a Board of Directors appointed by the Privatisation and Public Enterprise Supervising Agency. surface and subsurface geophysical exploration. The Ta2O5 and Nb2O5 content in the concentrate ranges from 45-60% and 10-20%. and Kenticha and Bombawoha mining sites. mineral development and mining. The core-drilling equipment can drill up to 600m deep and has the facility for full-hole stabilised core barrels. The value-added commodities required as an output will be: K2TaF7. capital and operational cost.PROFILE EMDSC’s mission control Leading the economic construction in Ethiopia by intensive E&D of mineral resources T HE government-owned Ethiopian Mineral Development Share Company explores for mineral deposits and mines tantalum and industrial minerals. feldspar. resistivity and IP surveying). limestone). amethyst. The exploration department’s two main aims are: ■ To discover additional reserves in areas around the existing mining operation so as extend the mine-life.5-0. peridot. ■ Three support units: organised in the Addis Ababa HQ. etc. radiometric. The tantalite concentrate EMDSC produces sometimes contains a substantial amount of uranium and thorium compounds that level it into a class-seven materials (total uranium and thorium compounds greater than 0. Addis Ababa. Kebele 05). water supply tankers and pumps. The company also offers core drilling. Apart from oil and gas. aquamarine. Be Li. EMDSC is engaged in mineral exploration. emerald. marble) and gemstones (among which precious opal. dolomite. diatomite. estimate after the announcement date of this notice. Ta2O5 and Nb2O5 powder. EMDSC wants to add value on the concentrate products and needs the technology to improve the acceptance of the material in the global market (see ‘Request for expression of interest’). The current mining plant can process 100t/hr of ore and can produce 200t/y of tantalite concentrate. etc). respectively. another team has outlined occurrences of granite-hosted vein and disseminated-type copper. ■ To look for economic mineral deposits elsewhere. decorative stones (granite. as well as in finance. Ethiopian Mineral Development Enterprises was one of the four enterprises set up at that time. 550km south of Addis Ababa. EMDSC is also looking forward to work in a joint-venture investment with other companies in exploration. ceramics. borehole geophysical logging (with six different parameters) and a borehole inclinometer (measuring depth. The mine is in the Kenticha area. with the ore being processed at the Legadembi plant. where Nyota is located. bounded by the Middle complex rocks both in the east as well as in the west. In the same month. Nyota’s chief executive. East Sakaro will be an underground operation. The underground gold reserve is estimated at 10. with an average grade of 3. noted in mid-2010 that the company has recently renewed three exploration licences and applied for. have been affected by the N-S. Megenta.ETHIOPIA Gold output grows Stratex’s activity Stratex International plc is an exploration and development company focussing on gold and high-value base metals in Turkey. 500km south of Addis Ababa. Activity at Nyota Minerals’ Tulu Kapi project mine is located on the Guji Zone in Odo Shakisso. the latter will acquire a 5% interest in SEA (and thereby a 5% interest in AbiAdi) once Thani Ashanti has expended its minimum US$500. which is less than 5km away. and expects to double this amount in 2011. Legadembi Open Pit The Legadembi open-pit mine has a proven ore reserve of 65. classified into Middle and upper complexes. This mine shares the open pit’s processing plant. Long reliant on commodity exports such as coffee. sits within the Arabian-Nubian Shield that includes some of the larger gold projects discovered in recent years in Egypt and Eritrea.000oz/y since 2000. Drill-testing of the first target. plagioclase-quartz micaceous schist. is to commence during the current quarter. chlorite schist and amphibolites.743kg. which is being expanded such that the country is likely to become a net exporter of power in coming years. with another underground mine under development. which will hold all of the company’s assets in Ethiopia and Djibouti.7g/t. She commented “we have tested the system and it works well”. E-W. with an option to earn a further 10% of a joint venture company with LozBez.39t of gold). Grass-roots exploration in Ethiopia has uncovered an extensive new gold district.45Mt at 1. where it is developing the Tulu Kapi project.54t. which is currently funding exploration of the first 11 licence areas.59g/t.2 million. The company can then earn 75% of AbiAdi through the expenditure of US$1 million over a 36-month period.38Moz. The same gold-prospective geology exists in Ethiopia. and the company believes that the area around Tulu Kapi has the potential to become a gold province. Stratex is currently undertaking a due diligence study on AbiAdi (over a three-month period) for an initial expenditure of US$50. and was the first conducted in Ethiopia.42g/t. The western portion of Ethiopia. In May 2010.000.500kg/y but the deposit is expected to be exhausted this year. which has been producing about 100. East Sakaro Development A feasibility study in January 2008 by MIDROC concluded that the mineable reserve at East Sakaro is 17. Stratex’s interest in AbiAdi will reside in whollyowned Stratex East Africa (SEA). in recent years the country has been reporting annual revenue of over US$100 million from gold exports. for a contained 1. which has attracted Thani Ashanti (an AngloGold Ashanti joint-venture company).000 commitment at the company’s Afar project. Electricity in Ethiopia is supplied largely from its hydroelectric network. sometimes foliated and sometimes massive. a further two exploration licences and one prospecting licence.086kg. and the average annual production is 1. Last November. Gold melting at MIDROC Legadembi Underground Underground development at Legedembi commenced in 2000. London-listed Nyota Minerals Ltd has been focusing on the northwest of Ethiopia. Northern greenstone belt January 2011 “The western portion of Ethiopia sits within the Arabian-Nubian Shield that includes some of the larger gold projects discovered in recent years in Egypt and Eritrea” 9 . Mining Journal special publication – Ethiopia GOLD OPERATIONS Ethiopia currently has only one operational mine (comprising both an open pit and underground operation). The Adola Belt is composed of volcano-sedimentary rocks. However. The loitologies of the area are quartzo feldspathic gneiss.840m. Under the terms of Stratex’s pact with Thani Ashanti. MIDROC Gold Mine plc’s Legadembi Pilot test for gold and base-metal mining at Terer area. Oromia. and secured. The rock units invariably trend regionally N-S. MIDROC Gold Mine plc’s Legadembi operation. the Ethiopian government says it has identified possible reserves of up to 16Moz of gold in different parts of the country. MINING OPPORTUNITIES Ethiopia has one existing privately-owned mine. which is expected to extend the life of that operation to 2013.68g/t. This licence covers an area of 967km2 of highly prospective ground for gold and base metal mineralisation within the Arabian-Nubian Shield. Stratex signed a deal with privately-owned LozBez Mining Private Ltd for the AbiAdi-Gichke gold project in Tigray province. Production has averaged 3. The western extreme is Gabro-amphibolite. the mine was privatised in 1998 (after extraction of 12. the IFC took a 10% stake in Nyota for US$5. the feasibility study takes into account only two veins and the company has identified a number of other veins that have very encouraging results. However. at average grade of 10. among other prospects. A LTHOUGH the mining sector in Ethiopia is quite small. The upper complex rocks are confined to a narrow N-S stretching structure known as the MegadoGraben syncline. Melissa Sturgess. Nyota doubled the resource estimate at Tulu Kapi to 25. Underground mining started in June 2009. As of end-June the total length of underground tunnels was 8. the magnitude of their effects range from local to regional. NW-SE and NE-SW trending faults. takes a 2% equity for the state and levies a 30% tax. The mine started pilot-scale operation in 1987 and reached commercial output in 1989.94t at an average gold grade of 3. Following the government’s investment policy. Legadembi is located within Late Proterozoic Crystalline Basement rock (the Adola Greenstone Belt). Ethiopia and Djibouti. The government charges a 8% royalty on gold. The target has a MIDROC Gold Lab at Bullen Midroc drilling for gold in Metekel Zone strike length of 4-5km and a width of a few hundred metres. together with the progress being made by other exploration companies. MIDROC Gold has progressed in massive strides since its formation and subsequent acquisition of the Legadembi gold mine. Kebele 04 PO Box 2318. which surrounds Legadembi and stretches for dozens of kilometres to the north and south. The first few samples were transported over this distance for analysis but.html Contact: Dr Arega Yirdaw. The company’s current five-year plan envisages mining activity involving the Legadembi open pit and underground mines. which will include a new processing plant and accompanying infrastructure. drilling will continue in order to produce data for a feasibility study. The Metekel area is a green exploration field. This would mean an increase in gold production and job opportunities. about 40km away from the exploration area. contribute to the infrastructural development of the region and benefit the supply chain. improved maintenance and upgraded infrastructure required for operations. which will be handled by an independent consultant. numerous mineralisation has been identified in the same licence area. MIDROC Gold will extend its mining life and expand considerably.midroc-ethiotechgroup. exploration activity mainly consists of an advanced core-drilling Arega Dr programme. and the Sakaro underground mine. Sheik Mohamed Hussein Ali Al-Amoudi. Exploration activity in the Adola area resulted in the creation of the Sakaro Gold mine. The new laboratory mainly uses a combination of wet assay and fire assay with atomic absorption spectrometry reading. located 500km south of Addis Ababa. to meet future requirements. MIDROC Gold has optimised the processing plant to boost gold recovery.PROFILE MIDROC Gold en route to expansion M IDROC Gold Mine. and there are plans to conduct a prefeasibility study by mid-2011. for which a feasibility study was completed in 2008.500 people. exploration licences were secured that enabled exploration of the Adola region. the number-one investor in the country of his birth. now that exploration is at the advanced stage. It took some time to identify a promising target. which has persuaded the company to request new licensing to explore the full potential of the area. In 2005. Mineralisation is open at the northern strike and at depth. Moreover. this laboratory is being enhanced.com/ MGOLD/HOME PAGE/MGOLD-HOME PAGE. Exploration activity has not been limited to the Adola-Legadembi area. The company has over 12 years’ experience and currently employees 1. but in the end one was outlined in Jilaye. is owned by the business tycoon. So far it has produced more than 11. an exploration licence was obtained in the Metekel Zone of the Benishangul Gumuz regional administration. both in terms of the building and equipment.100km away by road at Legadembi. Depending on the results. MIDROC Gold’s management is encouraged by the positive outcome of exploring and assaying for gold at Metekel. Ethiopia Tel: +251 011 372 82 18/19/20/21 Fax: +251 011 372 82 27 E-mail: Mgold1@Ethionet. A decline is being driven to about 850m and is expected to cross the orebody by 2012. located in western Ethiopia. CONTACTS MIDROC Gold Midroc Ethiopia Technology – Group Corporate Center (Mechare Meda Campus) Nefas Silk Lafto Sub-City.Et Website: www. in 1998. The management approach has also been updated progressively and Ethiopians have been groomed to take up senior positions in the company. at the end of 2008. Assaying samples from exploration at Metekel were a major challenge as the company’s laboratory facilities are located 1. CEO & General Manager Tel: +251 011 372 82 34 10 Mining Journal special publication – Ethiopia January 2011 . Currently. Addis Ababa. Parallel to enhancing its gold reserve base. This expansion will involve the addition of a new open-pit gold mine in an area in the west of the country. The plan is to undertake the study in-house and later to commission an independent consultant to review it. What began as an open-pit operation soon grew into an underground development mining gold resources from deeper levels of the same deposit. Although the Jilaye target Yirdaw is the priority. the largest mining company in Ethiopia. The mine is located about 4km southwest of Legadembi and is currently under development. is expected to open a new era of mining in Ethiopia.000 assay reports for gold. opening a new mine and extending the other. Depending on the outcome of exploration at Metekel. the company installed a laboratory in the town of Bullen. MIDROC Gold’s expansion. based on the results of advanced drilling. when ore extraction is expected to start. At the same time. mom.gov.ETHIOPIA Competitive edge stays at core of legal regime Various amendments to proclamations and regulations introduced in the early 1990s aim to keep the country’s mining sector buoyant Geology mapped Geoscientific mapping of the country started in 1968 with the establishment of the Geological Survey of Ethiopia (GSE). more than half of Ethiopia is currently covered by 1:250. The government also guarantees the opening and operation of a foreign currency account in Ethiopia. The GSE was recently reorganised such that all the processes are incorporated under one facility Geochemical surveys at different scales have been conducted in different parts of the country. dividends. loans etc out of Ethiopia. Small-scale Mining Dry Road Main Road Regions and large-scale operations. Exploration Licence Active. Ethiopia Tel: +251 116463325 / 116463329 Fax: +251 116463326 Website: www. and the retention of portion of foreign currency earning and remittance of profits. Mining Regulations 182/1994 and Income Tax proclamations 53/1993 were issued to attract private investment. Ethiopia Tel: +251 116 461214.et E-mail: mineral_operations@mom. with two renewals of one year each.geology. The new proclamation provides: ■ Non exclusive reconnaissance rights (for a maximum period of 18 months).mome.gov.000 geological maps. ■ Initial three-year exclusive exploration licenses. Small-scale Mining Dry Road Main Road Regions January 2011 Mining Journal special publication – Ethiopia 11 . and dispute settlement is through negotiation and international arbitration In return. Ministry Licences. and came into effect in August 2010. ■ Increase the coverage of the 1:250. the government requires the payment of relatively low royalties.000 geochemical map of the country to 49%. with unlimited renewal periods (of 5 or 10 years each). In the early 1990s. Exploration 0 50 100 200 300 km 400 Active. Only government institutions had the right to explore and develop the country’s mineral wealth. Large-scale Mining Active. the government made changes to encourage the participation of private capital in mineral prospecting. and for environmental and social impact assessments (depending on the type and nature of the project). The entire country is now covered by a 1:2. In 1991 a new market-oriented economic policy was introduced. The government allows losses to be carried forward for ten years.gov. All of these maps are available in printed and electronic versions.000 geological map coverage by 2015.000 geological map (first published in 1973. To date some 20% of the country is covered by maps with a scale of 1:100. Exploration Licence Active. A new law (Mining proclamation 678/2010) has been issued.et.000 and less. The Ethiopian government has approved a five-year (2011-15) growth and transformation strategic plan. principal and interest on foreign Contacts Mineral Licensing and Adminstration Department. Active.et The Mineral Operations licence application form is available from the website: www. ranging from 3% for construction materials to 8% for precious stones and minerals. Large-scale Mining Active. and ■ Compile a 1:2.et E-mail: survey@ethionet. Addis Ababa. machinery and vehicles necessary for the mineral operations. In line with this strategic framework it has been decided to: ■ Complete the 1: 250. Ministry of Mines: PO Box 486. In the mining sector. Addis Ababa. The proclamation also requires a communitydevelopment programme. and systematic geochemical mapping (at 1:250. and the country is due to be 100% covered at this scale by 2015. guarantees the licensee’s right to sell the minerals.000) integrated with geological and geophysical mapping is underway.et Geological Survey of Ethiopia: PO Box 2302. This calculation is based on the value of mine-mouth mineral production. environmental protection. These proclamations were consecutively amended. so as to remain competitive. This work was conducted either independently by the Ethiopian government or in collaboration with other international organisations. Particular emphasis has been given to assess the mineral potential of the Precambrian rocks. The new proclamation also makes provision for the adequate health and safety of employees. with an edited version being produced in 1996).gov.000. provides exemption from customs duties and from taxes on the equipment.000. respectively. Fax: +251 116 463454 / 463364 / 463426 Website: www. exploration and development. and ■ Mining licence for 10 or 20 years for small-scale Mining Licence Application Areas 0 50 100 200 300 km 400 Active. Also. T HE minerals of Ethiopia were not available to the private sector during the communist regime of 1974 to 1991.000 geochemical atlas and metallogenic map of the country. the Mining Proclamation 52/1993. • 50.29 . with a further resource update expected in early 2011.6% *12 January 2011 Drilling at Tulu Kapi Visible gold on core sample . • Environmental & Social Impact Assessment due in early 2011. • 44. • Preliminary Economic Assessment study due for completion in early 2011.£0. GBP 125 million* Mid Share Price 52 week high/low: £0.000 meters of drilling planned over next 12 months with 4 drill rigs on site. south. which has a total Inferred JORC resource of 1.000 line km airborne geophysical survey commenced over 3.550 highly prospective new licence areas. Nyota’s Environmental and Social goals are consistent with Equator Principle guidelines and are endorsed by International Finance Corporation. Aggressive exploration programme is already underway and will bring newsflow throughout 2011.Ticker: AIM : NYO ASX : NYO Market Cap: Nyota Minerals Limited is an Australian registered company listed on the Australian Stock Exchange and the AIM Exchange in London. Key Points • GBP 22 million fundraise completed.5 g/t gold. Nyota is focused on the exploration of over 3.09* Shares on Issue: 455 million* Directors’ Holdings: 5.550 km2 of prospective land in western Ethiopia and the ongoing exploration and development of the Tulu Kapi Deposit. west and at depth. defined at a cut off grade of 0.38 million ounces of gold. Outlook The Tulu Kapi Deposit is open to the north. On 7 December 2010..75 m @1.nyotaminerals. for the local community. M. Nyota has also implemented a comprehensive OH&S Programme. Key Field Managers Channa Pelpola: Manager. His experience includes resource estimates and project advancement to the feasibility level. Environmental and Social Channa (B.1 m @ 8. Initial focus is on several high-grade gold targets identified by Nyota in 2010.04 g/t gold. project managing large scale multi-disciplinary projects. Ethiopian Minister of Mines. Mme Sinkenesh Ejigu opened a 12 classroom school constructed by Nyota.Sc. It will begin on the Soyoma Target where previous trench results have returned up to 14. Board of Directors Melissa Sturgess: Chairman David Pettman: Non Executive Deputy Chairman Terry Tucker: Executive Director and CEO Dr. a geologist who has worked on advanced exploration and development projects in North and South America.Sc. Previous drilling results returned up to 8.23g/t au and test borehole results returned up to 7..6% Analyst Coverage Broker Ocean Mirabaud Bell Potter Pattersons Analyst Simon Gardner-Bond Nick Chalmers Stuart Howe Alex Passmore Tel Number +44 207 786 4370 +44 207 321 2508 +61 3 9235 1782 +61 8 9263 1111 UK office Manfield House 1 Southampton Street London WC2R 0LR Tel: +44 (0) 20 7379 5012 Fax: +44 (0) 20 7395 1931 Jan 10 www. The drilling programme will be undertaken with a recently commissioned fifth drill rig and will consist of approximately 10 holes concentrated in the NE portion of the ‘Guliso Trend’ and the SE portion of the Yubdo license. The combination of mineralogy and geophysical signature specific to this mineralization style has been noted elsewhere within the Tulu Kapi area by Noyta implying the possible presence of multiple high-grade feeder zones with the current gold resource largely reflecting distal mineralization..The ESIA will include baseline field work. The Dina Target is located 2. averaging 37.Technical In early December Nyota announced further significant drill results as part of an update on the Company’s Tulu Kapi Project. Kevin Piepgrass: Manager.70 meters. and advancing innovative environmental solutions. Carleton. Technical Mike Langoulant: Executive Director. Finance Share Price Performance – 1 Year Timeframe 30 25 GBP 20 15 10 Jan 10 Mar 10 May 10 Jul 10 Sep 10 Nov 10 5 Jan 11 Major Shareholders Shareholder % holding As at Nov 2010 International Finance Corporation JP Morgan Directors 10% 10% 5.com . Regional An initial 2. Community Development JEMA International Consulting PLC (Addis Ababa) and SRK consulting (Johannesburg) have been commissioned to complete An Environmental and Social Impact Assessment (ESIA) to Equator Principle Standards for the Tulu Kapi Project.2 g/t gold over a 20 m strike-length. Equipment has also been provided by Nyota and currently 454 students are registered to attend. socioeconomic studies and long term monitoring programmes such as water and air quality. Kevin has managed a number of large projects in the Yukon and Guyana including a joint venture with Newmont. Evan Kirby: Non Executive Director Martyn Churchouse: Executive Director. Simon Fraser) has over 15 years of environmental assessment experience which includes conducting technical and environmental assessments. Individual specialist studies will be compliant with Equator Principles and with IFC standards.This significant discovery is a strong indication that the Tulu Kapi Deposit is a part of a large magmatic gold bearing system and offers potential for further discoveries and expansion. University of Alberta).23 g/t Au.2 m @ 8. Exploration Kevin Piepgrass (B.Sc. a high-grade gold feeder zone style mineralisation characterized by abundant visible gold and associated high gold grades: TKBH-07 intersecting 15.000 meter (m) regional diamond drilling programme for the Billa-Guliso and Yubdo Exploration License Areas commenced in early December 2010. In particular. Many other regional targets are considered to be high priority and are well deserving of continued exploration.5 km south-west of Soyoma. Doctoral Thesis. The dunite is sulphide poor. A) Magmatic PGM enclosed in disseminated chromite within dunite. G. and Hoinkes. which played a role in the remobilisation of precious metals. 1969. in general. The Yubdo mafic-ultramafic intrusions are an Alaskan-type intrusion. C) PGM in serpentised zone References Belete. Layered ultramafic intrusions are also mapped at The detailed geological mapping and rock-chip north-south-oriented lineaments at Sirba Abay sampling. and values in the weathered Saprolite sections over the the Yubdo ultramafic body is very attractive target for primary mineralised zones. which in some grains becomes pure magnetite. and Ettinger. The recent pitting exploration activities in the All the samples. The chromite is zoned with a Cr-rich magmatic core where the PGM is enclosed and an altered rim-rich in Fe3+ (ferritchromite). The rocks are affected by greenschist to lower amphibolite facies metamorphism. 2000. University of Graz. Ethiopia. Issoferroplatinum (Pt3Fe) and Tulameenite (Pt2FeCu) compositions. KH. of the altered rocks next to the outcrops. KH.Western Ethiopia. The 1. following pitting results. 278p. and Genesis of Platinum-Group Minerals Related to an Alaskan Type Ultramafic Intrusions of Yubdo Area. the far northern part of the western NE-SW trending shear zones returned up to 1.The Petrology of Mafic-Ultramafic Rocks and Surrounding Basement. primary precious metals exploration activities. US. Alaskan-Type Intrusions in Western Ethiopia: Its Implication to the Arabian Nubian Shield and Tectonics of the Mozambique Belt. Belete. A. Mogessie.8g/t Pt Ethiopia ultramafics. values. Duval Corp. Belete. pits. mainly in exposed mined sections. 2000. 2000. A. Hoinkes.13g/t Pt. “The Yubdo ultramafic body is very attractive target for primary precious metals exploration activities” Occurrences of PGMs were also reported in this belt during 2005 by the private company Wellga Mineral Development plc. 14 Mining Journal special publication – Ethiopia January 2011 . trenches and Yubdo ultramafic by Yubdo Platinum and Gold rock-chips of Yubdo ultramafic body showed high Development plc (YPGD) showed very high platinum values of platinum and gold. which are mainly composed of hornblende clino-pyroxenite. reaching up to 1. peridotite and dunite.ETHIOPIA Platinum mineralisation at Yubdo B By Gebre Egziabher Mekonen ASED on previous studies.0m grab borehole samples returned platinum values reaching up to 806ppb and gold values reaching up to 780ppb. KH. such as Bushveld type layered intrusions as well as the Alaskan-type intrusions. and also by a late stage hydrothermal fluid. p62. Platinum-Group Minerals and Chrome-Spinels in the Yubdo Ultramafic Rocks. G.81g/t Pt and 2m at 1. boreholes.Welega Province. It is elliptical in shape and has an exposed outcrop length of 9km and a width of 4-5km.Western Ethiopia. showed platinum mineralised zones reaching OTHER OCCURRENCES 10m at 0. Trenching activities by YPGD. Austria. and comprises all types of ultramafics. The belt extends more than 150-200km north-south.Yubdo Evaluation Report. K. along shear zones. ED. Edited by Fields.Yubdo Tulu-Dimtu Mafic-Ultramafic Belt. B) The same grain. by YPGD. The PGMs were discovered in the Yubdo Geochemical map of the Yubdo area ultramafic rocks for the first time in 2000 from borehole samples drilled in 1969 by Duval Corp. Journal of African Earth Sciences. Institute of Mineralogy and Petrology. 30. 30. Journal of African Earth Science. Mogessie.3ppm Pt. The existence of the primary PGMs at the Yubdo ultramafic belt in western Ethiopia demonstrates a very promising potential for these metals in that region. The primary PGMs documented in the chromites and serpentinised dunites have Tetraferroplatinum (PtFe). the ultramafic belt of western Ethiopia is geological favourable for platinum-group metals (PGMs). pp10-11. With the identification of multiple epithermal systems in the Afar Depression of Ethiopia (and into Djibouti). The company has an extensive portfolio of targeted projects. Stratex also has the option to earn up to 75% of the Abi Adi gold project by expending US$1 million.500m in strike and up to 200m wide. can lead to rapid exploration success.000m strike length of the mineralisation. Abi-Adi project. In October 2009. far left: Chalcedonic silica alteration with pyrite containing ~16g/t Au from Hyena Zone. CONTACTS Stratex International 180 Piccadilly. Inset. Sudan. targeting precious and base metals. Based on the favourable geology of the ANS. where Stratex is earning to 60% by funding exploration to £350. which is earning into the Afar Project. This key new epithermal play has attracted the attention of Thani Ashanti (an AngloGold Ashanti JV company with Dubai-based Thani Investments). UK Tel: +44 (0)20 7830 9650 Fax: +44 (0)20 7830 9651 E-mail: info@stratexplc. Since discovering Megenta.PROFILE Stratex discovers the future in the Afar S INCE making its entry into Ethiopia in September 2009. northern Ethiopia has seen little in the way of systematic exploration. The Afar Depression is a topographic low at the northeastern limit of the MER and resulted from three-way crustal extension – a tectonic ‘triple-junction’ where the MER meets the Red Sea and Gulf of Aden spreading ridges.000m drilling at Megenta. The potential of the Afar Depression was realised after Stratex targeted the Main Ethiopian Rift (MER) in this unexplored region of northeast Africa. Saudi Arabian and Eritrea. which has a current resource of 840. extensive gold mineralised sector of the East African Rift system. and closely associated with a series of elongate granitoid intrusions. occurring as gold-bearing quartz veins containing copper and lead minerals. where discoveries such as Nevsun’s Bisha deposit have attracted attention. Stratex has already defined significant gold mineralisation over a 5.com Contact: David Hall. Drilling at Megenta is expected to start in March 2011. the company made its first discovery here: the Megenta gold prospect. gold-bearing silicified and brecciated fault structures. including at least 3.000oz Au related to lead-rich. gold-bearing veins within micro-granites. siliciclastic red-bed sedimentary rocks of Holocene age.000. Sub city Bole. Stratex has used its first-mover advantage to secure exclusive exploration licences (EELs) over the hot-spring systems it has identified in the wider Afar region. which are confined to a major. normal fault system that bounds the southwestern side of the Manda-Hararo-Gobaad rift. Early work at Tigray has identified a large granitoid intrusion with associated polymetallic quartz veins. Thani Ashanti will fund US$1 million over the first 12 months. Executive Director for East Africa Website: www. Despite having only been operating in Ethiopia for slightly over a year. Stratex’s original view that the country had much to offer and was grossly under-explored has been completely vindicated. Stratex has acquired two additional EELs. It is the company’s opinion that it does not get much better than that. Gold deposits of this type were developed at relatively shallow depths beneath ancient hot-spring systems – Stratex’s exploration has identified multiple systems of this nature in the Afar region. The property is held by Ethiopian company LozBez Mining. NORTHERN ETHIOPIA North Ethiopia contains large tracts of the Arabian Nubian Shields (ANS). As well as two joint-venture programmes in northern Ethiopia and its own 100%-owned licences. Ethiopia Tel: +251 (0)116 624 367 Sulphide-bearing quartz vein in granite. Stratex has identified the eastern region of Afar (extending into Djibouti) as a new. These ridges are characterised by voluminous volcanic activity and the development of associated hot-spring systems. Stratex International has rapidly developed a substantial exploration portfolio and become one of the most active exploration companies in the country. coupled with the flexible decision-making and operation that smaller companies enjoy. comprising five licence areas in Ethiopia and a further six in Djibouti. Megenta THE AFAR EPITHERMAL DISTRICT Since establishing the company in 2005. The Megenta system comprises a series of northwest to north-northwest striking. with the option to go to 80% by funding the project to feasibility. Stratex has achieved this objective. the highest value obtained by Stratex from these fault-controlled zones of mineralisation is 16. and a further US$2 million in the second year to earn to 51%. Unlike Eritrea. Detailed mapping and sampling has defined gold mineralisation over 1. while also acquiring ground over similar prospects in Djibouti. based on the known association of rift settings with bimodal volcanics and ‘bonanza-style’ low-sulphidation (LS) gold mineralisation in the Nevada Rift and the Deseado Massif of southern Argentina. 31m grading 0. To date. There are many similarities with Chalice’s Koka project in northern Eritrea.04g/t Au. The company has demonstrated how the application of up-to-date science. rather than recycling old prospects.com Ethiopian Exploration Office House 1060. highly prospective rocks known to host mineralisation in Egypt. three JVs with local and international partners. Afar Project (red = silicified sediments). Kebele 5.39g/t Au. This area’s geology is a direct extension of that in Eritrea.82g/t Au. at Tigray and Berahale. London W1J 9HF. This exciting development demonstrates that Stratex is truly applying its motto of “discovering the future”. Key mineralised zones identified at Megenta. and lays claim to the discovery of a completely new gold district comprising multiple low-sulphidation systems with multi-ounce gold potential in the Afar Depression. The fault zone juxtaposes a basalt lava sequence of the Afar Stratoid Series with a thick succession of subhorizontal. 11m grading 4. Stratex initially focused on a JV with Plus-listed Sheba Exploration over the Shehagne gold occurrence. Significant highlights include: 84m grading 1.stratexinternational. This is the first entry of a gold major into Ethiopia and endorses Stratex’s belief in the region’s potential as a significant new gold district. The company aims to drill the project in 2011. Addis Ababa. southern Tigray January 2011 Mining Journal special publication – Ethiopia 15 .7g/t Au. Stratex’s management has recognised the need for greenfield exploration to define entirely new mineralised districts to meet the current and future demand for metals. published weekly. UK Printed by Stephens & George. Published by Aspermont UK. Bournehall Road.com/supplements Subscription enquiries: PO Box 1045. Merthyr Tydfil . Albert House. London EC2A 4BQ.mining-journal. 1 Singer St. UK Tel: +44 (0)20 8955 7050 Fax: +44 (0)20 8421 8155 E-mail: subscriptions@mining-journal. is available only as part of a subscription with Mining Magazine plus Mining.More about Ethiopia? Visit our website for an extended version of this supplement – www. Bournehall House. People and the Environment as well as online access.com Mining Journal. Bushey WD23 3YG.