Eritrea's First Industrial-Scale Mine Under Construction

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Researched by Industrial Info Resources (Sugar Land, Texas)--The first industrial scale mining project in Eritrea, located between Ethiopia and Sudan in northeast Africa, is moving full steam ahead despite the worldwide credit crunch. Construction of the $250 million Bisha Gold Mine, Eritrea's first industrialized mine, is progressing without incident and has an operational target date of mid-2010. The Bisha Gold Project is a massive polymetallic project located in Bisha, Eritrea. The Bisha Mining Company, a jointly owned subsidiary of Vancouver based-Nevsun Resources (TSX:NSU) and state-owned Eritrean National Mining Corporation (ENAMCO) is the owner of Bisha Gold Mine. The mine is being constructed in three phases by Senet Engineering (Modderfontein, South Africa).

In the first phase (oxide ore production), Bisha will produce high grade gold. Phase II (supergene sulfide ore) will involve the production of copper concentrate, while Phase III (primary sulfide ore), using common infrastructures, will produce zinc and copper concentrates for the remainder of the mine's life. Based on a 2006 feasibility study completed by AMEC Americas (Oakville, Ontario, a subsidiary of AMEC plc (LSE:AMEC) (London, England), Bisha is expected to produce more than 28 tons of gold, nearly 280 tons of silver, almost 340,000 tons of copper and more than 450,000 tons of zinc during its 10-year life. The mine is fully supported by the Eritrean government, which has long-term strategic goals for the establishment and promotion a of strong mining industry in the country.

It is to this end that another Canadian exploration company is investing in Eritrea. Sunridge Gold Corporation (CVE:SGC) (Vancouver, British Columbia) and Nevsun Resources are among the most active exploration companies in Eritrea's mining sector. Sunridge is conducting a scoping study on the massive Emba Derho polymetalic deposit located 12 kilometers from the capital city Asmara. Emba Derho is one of four major deposits in a group of deposits that makes up Sunridge's Asmara project.

ENAMCO was established in 2006 by the government of Eritrea to promote the development of the mining industry in Eritrea and to manage the government's interests in mining companies. Ethiopia's annexation of Eritrea as a province ended in 1991 after a 30-year struggle for independence. Eritrea's independence was overwhelmingly approved in a 1993 referendum. A two-and-a-half-year border war with Ethiopia that erupted in 1998 ended under U.N. auspices in December 2000.

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