2merkato

Syrah Resources concluded a deal with Aramis Resources Limited for the acquisition of an 80 percent interest in three large projects of gold exploration in Ethiopian.

Syrah will acquire the stake through paying 1.5 million dollars in three instalments spread over two years, issuing 25 million shares and up to 5 million options, and the expenditure of 2.5 million dollars on the projects within 3 years.

Syrah will explore 2,000 sq km of prime ground and get access to various assets with mineral exposure.
The ground consists of three project areas at Moyale, Nejo and Dawa which are all found close to areas of significant gold mineralisation in southern and western Ethiopia.

Moyale contains one granted tenement covering 440 sq km. 

The Dawa Project contains two granted tenements covering 1,000 sq km south of Lega Dembi Mine in southern Ethiopia. Gold production at Lega Dembi is reported to have hit 3 million ounces over the last two decades and it is still producing more than 100,000 ounces annually.

The Nejo project contains four granted tenements covering 771 square kilometres in the western part of the country, north of Nyota Minerals Limited's Tulu Kapi Project (currently 1.2 million ounces in resources).

Small areas of high grade mineralisation associated with quartz veins in intrusives have been mined at a small scale on the licence at the Chamuk Prospect. Drilling has proven that there is good potential for resources to be outlined.

Syrah Resources shares climbed 31.25 percent to 0.105 dollars in intraday trading today.

Source: Proactive Investors  

Over 1,600 kg of gold was supplied to the central market from Guji Zone of the Oromia Regional State over the last nine months, Mines Office of the zone said.

The amount exceeds the set target by 100 kg and that of the same period last year by 549 kg, Mekonnen Lema, head of Mines Development Administration Office, said.

The cooperatives in Guji, which supplied the 1,600 kg of gold to central market this year, are preparing to supply more than 2,000 kg of gold to the market for the coming fiscal year.

Source: Ethiopian News Agency

Allana Potash could consider expanding potash mining operations at the Danakhil potash project in Ethiopia with a larger production facility in an upcoming feasibility study, Farhad Abasov, president and CEO of Allana Potash, said.  

The company was planning a production of 1million tonnes of potash a year, according to Abasov who said that it could increase its production goals.

The company declared yesterday a much anticipated resource expansion and upgrade which confirmed the substantial size of its potash beds. From a previous 100 million tonne inferred resource, Allana cracked out a 673 million tonne measured and indicated resource at 18.65 percent potassium chloride (KCl) with a further 596 million tonnes at 19.96 percent KCl in the inferred category. Abasov noted that the resources would form the basis of a feasibility study slated for later this year.

Abasov said that talks were underway with partners for off-take and financing agreements covering its Danakhil potash project.

In 2009 Allana had signed on China Minerals United (CMU) as strategic investor with both agreeing to negotiate a 20 percent off take agreement in return for 35 percent or about 280 million dollar portion of Danakhil's construction costs. But the CMU deals has not been finalised yet.

The potash mineralization in the Danakil Depression is well known, with mining carried out sporadically from the early 1900s. Other mining corporations in the basin include BHP Billiton and India's Sainik Coal Mining, which is planning to start mining at the Musley deposit.

Source: Mineweb

Ethiopian Potash Corp. was listed on the OTCQX and that it had begun trading on the OTC market's highest tier, OTCQX under the symbol "ETPHF", David Wahl, President and CEO, announced yesterday.

Soloway Group LLP will assist as Ethiopian Potash Corp's Principal American Liaison on OTCQX, responsible for providing guidance on OTCQX requirements.

The OTCQX marketplace is the premier tier of the U.S. Over-the-Counter market. Investor-focused companies use the quality controlled OTCQX listing platform to offer investors transparent trading, superior information, and easy access through their regulated U.S. broker-dealers. The innovative OTCQX platform offers companies and their shareholders a level of marketplace services formerly available only on a U.S. exchange.

Ethiopian Potash Corp. is a Canadian company based in Toronto, Ontario and Addis Ababa, Ethiopia. The company has acquired a 481 sq km potash asset, in the Danakil depression of northern Ethiopia.

It is to be recalled that George Roach, board chairman of Ethiopian Potash Corp, had announced in the last week of May 2011 that the company's drilling rigs were in the process of being commissioned and were expected to start operation early in June.

The Danakil Depression has one of the largest undeveloped potash resources in the world. The fact that it lays almost on the surface of the ground as opposed to those in Saskatchewan, which are found deeper than one kilometre in the earth, testifies to its significance. Ethiopian Potash Corp has two neighbouring development concessions covering 481 sq km in the centre of the Danakil Depression.

Source: Marketwire