Mineral Invest: Joint Venture in Ethiopia - Moyale Gold LicenseSe hela nyheten i Adobe Acrobat
Mineral Invest International has recently signed a JV agreement with OSS Engineering Private Limited Company regarding a 70% ownership of Moyale gold license in Ethiopia. In line with MII strategy exploration by mining - small scale mining will start in the beginning of 2010. We are focused on three areas; Chamuk, Haramsan and Hassemte within the Moyale license. Merely Haramsan quartz veins are estimated to contain over 700,000 Oz of gold with an average of 5.22 g/tonne. The initial production will be financed through local Ethiopian partners and Ethiopian banks where MII will allocate a bank guarantee of USD 300,000 on company bank account in Sweden to gain a loan of corresponding USD 600,000 which will be enough to start small scale production. The initial production target is 10 kg gold per month - second half of 2010. The production will be increased step by step and the project will be further developed on its own commercial merits.
CEO Michael Nilsson comments: It is with great pleasure we got a new local Ethiopian partner in OSS Engineering and a share of a promising gold area. Our strategy - Exploration by mining - will be an optimal solution on this rich quartz vein targets. We will not conduct exploration drilling, we rely entirely on trenching samples from surface and the observations we have made from local activities. Approximately 50 kg of gold is produced per month by the local miners in the region. Consequently we are sure that we will dig in the right area. By this JV agreement we have strengthened our presence in Ethiopia where we already got an alluvial small scale mining JV project - Akobo - in the Gambella region.
The Moyale license consists of three contiguous concessions namely Chamuk, Haramsam and Hassemte blocks next to the border of Kenya. The mineral exploration license consists of the mineral rights to Chamuk, Haramsam and Hasemte.
Figure - Location Map of Moyale Gold License
The property is located in East Africa, Southern Ethiopia and can be reached by travelling 770 km on the East African Highway. The road is a section of the Trans-African Cairo-Capetown highway. The Chamuk property is within 3 to 8 km from Moyale town while Haramsam and Hassemte properties are 23 km to 34 km along all weather roads respectively.
Regional Geology of Moyale Area
The Moyale area is characterized by the abundant occurrence of weakly to strongly foliate metamorphosed mafic - ultramafic rocks with the associated meta sediments and massive to weakly foliated granitoids.
There are sporadic layers of metamorphosed acidic volcanic rocks and thin sedimentary derivatives. The mafic - ultramafic rocks generally show wide mineral composition with green schist and amphibolites making the greater part.
The heterogeneity of the structures across the vast portion of Moyale area has been recognized by a number of researchers from geological surveys of Ethiopia and other scholars. The most prominent structural trend is NW-SE oriented structure dipping SW (dominant in Moyale granodiorite), N-S strike dipping easterly structural fabrics which cross cut the former and E-W trending moderately southerly dipping structures.
Geological, geochemical, pitting, trenching and exploration drilling have been conducted at Chamuk, Haramsam and Hassamte properties by The Geological Survey of Ethiopia which has spent over USD 7 million for the exploration work. Result of the survey indicated the occurrence of potential gold mineralization associating mainly with NW and N striking brittle-ductile shear zone, faults and fracture associated quartz and quartz sulphide veins and wall rocks.
The gold-sulphide veins in the granodiorite in Chamuk property are characterized by appreciable quantities of galena, chalcopyrite and pyrite.
The Haramsam and Hassamte properties are associated with quartz sulphide veins sheared and hydrothermally altered mafic -ultramafic wall rocks. The following results were obtained in the past exploration works by The Geological Survey of Ethiopia (Aknaw A. and Tesfaye S. 1995)
* 13 trenches were excavated and channel sampling was conducted across each trench for 364 m along NW strike direction in Haramsam subarea II (Haroluko). The fire assay analytical data indicate
o Five channel samples from 1 m thick quartz vein in trench 1 showed Au 0.1 g/t to 96 g/t , average 22.2 g/t
o Eight channel samples from average 20 cm thick quartz vein in trench 2 showed Au 0.4 to 19.0 g/t with average 8.65 g/t
o Five channel samples from average 14 cm thick quartz vein in trench 3 showed Au 10.0 to 160 g/t with average 114.2 g/t
o Five channel samples taken from mean 20 cm thick quartz vein in trench 4 showed Au 10.0 to 31. 5 g/t , average 17.1 g/t
o Sheared and altered amphibolite host rock with quartz stringer channel samples taken from trench 9 over 8 m showed Au 0.3 to 12.6 g/t, average 3.54 g/t
o Sheared and altered amphibolite host rock with quartz stringer channel samples from trench 11 over 6 m showed Au 0.4 to 2.5 g/t, average 1.45 g/t
Based on the above data it is calculated to have reserve of 780,000 oz of gold with average width of ore zone 12 m strike length of 600 meter, depth 200 meter cut of grade 0.1 g/t and average grade of 5.22 g/t.
o Artisanal miners have been mining quartz veins during the past 15 years by digging and picking vertical shafts of 28 m in hard rock. Mining has been followed by manual milling and collecting coarse grains of gold after panning
To date, OSS Engineering expenditure on the Moyale exploration project is approximately USD 1 million.
The works at Hassamte have shown interesting results with the gold associated in the shear zones. Artisanal miners have been working in this area for some years and have dug six vertical shallow shafts in the sheared meta-gabbro.
The mineral exploration works conducted by The Geological Survey and OSS Engineering at the three properties have shown high values for the occurrence of potential gold mineralization associated with the regional brittle fractures and brittle - ductile shear structures.
Consequently, the Moyale license is an area of high potential gold deposit estimated to have a potential greater than 250 tons of gold.
The Joint Venture agreement between OSS Engineering and Mineral Invest International is initially to conduct small scale mining. Mineral Invest International will commit an operational cost, relevant machinery and technical expertise.
75% of the revenues from the small scale mining will be allocated for further exploration of the Moyale license with the objective to define the potential above.
The above geological work at Moyale are hereby re-studied and evaluated by two geologists. Mr Guyassa, a graduate of International Institute for Aerospace Survey and Earth Science, The Netherlands. Mr Guyassa has over 30 years of experience in geological exploration. In addition, he was also Vice Minister for The Ethiopian Ministry of Mines and Energy.
Dr. Debele, Phd graduate of University of Vienna, Institute of Geochemistry. M.Sc in Applied Geology from Indian Institute of Technology, Kharagpur and B.Sc from Addis Ababa, University. Dr. Dekisisa specializes in mineral exploration, geological and structural mapping and groundwater assessment and development.
Aknaw A. and Tesfaye S. Geochemical Exploration of Haramsam Sub Area II, Moyale, Southern Ethiopia. Unpublished. Technical Report. BAMMEP. EIGS. Addis Ababa.
Mineral Invest International MII AB is a Swedish company with mineral interest and operation in Congo Kinshasa, Ethiopia and Balkan. MII will be listed on a Swedish Stock Exchange in September 2009.
small - green - profitable
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Publicerat: 8/20/2009 11:47:41 AM