From: Biniam Tekle (biniamt@dehai.org)
Date: Tue Oct 06 2009 - 08:16:11 EDT
Tuesday, October 06, 2009
Gippsland targets base metals, gold in Eritrea - shares jumpby Peter
Gonnella & Andrew McCrea
Perth-based Gippsland Ltd (ASX:GIP; DB:GIX) subsidiary Nubian Resources plc
has picked up three prospecting licences in the state of Eritrea that it
likes for their base metals and gold prospectivity.
Investors liked the news and sent Gippsland shares 56% higher at one stage,
on turnover of 15.22 million shares traded.
The licences span an overall 300 sq km and contain the Abu Dabbab and
Nuweibi tantalum resources, which total 142.5 million tonnes and are
JORC-Code compliant, however, the company will initially focus on the search
for base metals and gold.
Abu Dabbab and Nuweibi occur in the mineral endowed Precambrian
Nubian-Arabian Shield, which also takes in the nearby Centamin Egypt-owned
(TSX:CEE; ASX:CNT; AIM:CEY) new Sukari gold mine in Egypt.
Sukari hosts current reserves totalling 142 million tonnes grading 1.4 g/t
Au for a contained 6.4 million ounces of gold.
In addition, in recent years there have been a number of gold and base metal
discoveries made in Eritrea, including Bisha, Zara and around Asmara.
Gippsland plans to undertake an initial sampling program on its new licences
during October and November involving the collection of drainage channel
samples within the new project areas.
This geochemical technique is known to be effective in the exploration for
gold and base metal deposits in Eritrea, according to the company.
Its drainage samples will be analysed for copper, lead, zinc and gold
mineralisation.
Jack Telford chief executive of Gippsland said the licences are located in a
region that has been the subject of “minimal previous exploration but has
the potential to host high-grade gold and base metal deposits”.
Recently, the news pipeline turned positive for the company as leading
Australian businessman Ian Gandel’s company Abbotsleigh Pty Ltd provided the
Company with a loan of AU$800,000 for working capital.
Which, he elected to convert (the loan) into shares via the issue of 80
million shares to Abbotsleigh Pty Ltd. Abbotsleigh’s shareholding equates
to 18.89% of the Company's fully paid ordinary shares on issue.
Gippsland has a world scale tantalum resource at Abu Dabbab in Egypt. With
the shut down of some tantalum projects, Abu Dabbab’s project economics will
be further boosted by the co-production of tin metal (as well as tantalum
revenues).
Additionally, feldspar production, is scheduled to commence after both
tantalum & tin production starts, will add substantially to the company's
bottom line return.
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