ETHIOPIA
Key facts
- Full name:
- Federal Democratic Republic of Ethiopia
- Capital:
- Addis Ababa
- Population:
- 78.2 million (2008 estimate)
- Area:
- 1 104 300km²
- Major languages:
- Amharic, Tigrinya, Oromo, Somali, Arabic, English
- Major religions:
- Christianity, Islam, indigenous
- Major exports:
- Coffee, khat, gold, leather, livestock, floriculture, oilseeds
- Government:
- Federal republic
Mineral regime and mining legislation
Ethiopia’s primary mineral export is gold, with the state-owned Ethiopian Mineral Resources Development Corporation (EMRDC) managing the development and production of mineral resources. The Ethiopian government retains title to all land and mining operations, subject to national and governmental approval. The government has the right to acquire a 2% interest in mining ventures as well as a 35% income tax levy on all mining operations. Mining royalties include 5% on precious metals and 3% on other minerals.
Benzu's strategy
Secure significant position across highly-prospective terrain – first mover advantage
Secure high-value, previously explored areas for re-development
- New, under-explored but highly prospective gold terrain, situated in southern Ethiopia, has been targeted for airborne geophysical exploration
- JV agreement signed in June with local partner GMCS who hold a 20km² exploration license – the Haranfama project - and is currently securing another 20km² extension
- JV agreement signed with local partner, Tiba, who holds a license made up of 3 blocks totaling 1276km² in Western Ethiopia
- Ethiopia – has a nascent gold industry, but is attracting increasing interest
Benzu’s interest
Benzu is currently pursuing gold investments in Ethiopia through its subsidiary, Aurigin Resources Limited, which has secured key tenements in the under-explored gold belts of southern and western Ethiopia.
Haranfama Gold Project - Overview
The Haranfama project was a discovery reported by the Ethiopia Geological Survey in early 2000s following findings from artisanal diggings. Gold is hosted in N-S trending “typical” greenstone belt of Proterozoic age, associated with intensive thrusting and faulting and shear zones. Another target for Benzu in highly prospective terrain - the LegaDembe gold mine – 1-3Moz, 4-6t Au produced per year – is situated c.50km to the west in another belt virtually identical to the Haranfama geological set-up. The 40km² licences secured and being secured by GMCS represent the most advanced exploration prospect identified to date in this new, highly prospective terrain, named Haranfama-Kenticha Gold Belt.
Exploration programme
- Alluvial artisanal diggings are widespread throughout the concession and beyond; some diggers have excavated pits in hard rock (mainly quartz veins) – mapping and sampling of these occurrences to be undertaken to cover the whole Haranfama-Kenticha Gold Belt
- Shear zone is likely to be at least 10km long and 1-2km wide – reconnaissance geological mapping
- Technical due diligence completed - regional data along with airborne and IP data acquired from the Ethiopian Geology Survey
- Trenching and sampling completed
- Three other areas of interest within the Haranfama-Kenticha Gold Belt have identified for a possible regional airborne magnetic survey (c.6000km² )
Western Ethiopia Gold Project - Overview
The Western Ethiopia project was previously explored in the mid 1990s by Golden Star Resources and is situated approximately 700km west of Addis. The licence is located in core of Tuludimtu Orogenic Belt, a 500km-long and 200km-wide zone of deformation that forms part of the greater East African Orogen.The north-south trending Tuludimtu Orogenic Belt also forms the southern part of the Arabian-Numibian Shield. The structure is of Neoproterozoic age, interpreted to be a collision belt formed during the assembly of Western Gondwana.
Exploration programme
During the mid 1990s, Golden Star completed the following exploration activities:
- Extensive geochemical sampling: stream, soil and rock outcrops
- Mapping
- Airborne geophysics (400m line spacing)
- Limited ground geophysics
- Trenching
- Drilling
Benzu has commenced exploration activities which include:
- Data capture in GIS format (completed)
- Data field validation (in progress)
- Structural mapping (completed)
- Data integration and interpretation (in progress)
- Additional high definition Aeromag (planned for 2011)
- Target testing by trenching and drilling (to start 2012)
- Resources evaluation (2012-13)
- Alluvial artisanal diggings are widespread throughout the concession and beyond; some diggers have excavated pits in hard rock (mainly quartz veins) – mapping and sampling of these ccurrences to be undertaken to cover the whole Haranfama-Kenticha Gold Belt
- Shear zone is likely to be at least 10km long and 1-2km wide – reconnaissance geological mapping
- Technical due diligence completed in August – regional data along with airborne and IP data acquired from the Ethiopian Geology Survey
Resource evaluation
South: Interpretation of the data collected by GMCS and the EGS within the 40km² area of interest indicates that this license could potentially host an initial 1Moz gold deposit. Securing and prospecting other high-priority parts of the under-explored Haranfama-Kenticha Gold Belt could result in the discovery of a new multimillion ounce gold terrain.
West: Interpretation of the data collected by Golden Star as well as the subsequent re-interpretation and structural geology assessment done by Benzu on the blocks indicates that this license has the potential to host a multi million ounce gold deposit.
Photo gallery
