article

More gold at Koka: Sub-Sahara & Dragon

Source: Miningnews.net
Wednesday, November 28, 2007

MORE high-grade gold has been intercepted at the Zara Gold joint venture between Sub-Sahara Resources and Dragon Mining.

Sub-Sahara managing director Michael Griffiths

The intercepts were identified from an ongoing infill diamond drilling program at the Koka prospect within the Zara Gold project in Eritrea.

Best results included 3m at 49.05 grams per tonne from 105m, 30m at 38gpt from 31m, and 6m at 69.5gpt from 38m.

"These latest drilling results from the infill diamond drilling have continued to add significant gold to the Koka deposit," Sub-Sahara managing director Michael Griffiths said.

"Our drilling is returning consistently high-grade gold values over good widths giving us greater confidence in our resource."

The Zara JV is a single licence covering 196 square kilometres northwest of Asmara, Eritrea's capital, and includes an inferred resource of 7 million tonnes at 3.4 grams per tonne gold containing 760,000oz gold.

Perth-based Sub-Sahara has a 69% interest in the JV, while Dragon holds 20% and the Eritrean Government retains a 10% free-carried interest.

Shares in Sub-Sahara were at 9c in early afternoon trade, up 1.4c, while shares in Dragon Mining were at 13c, up half a cent.