Eritrea Resource play (ERP)

[Whale Gunna]

Hi. Bye.

[Tackler]

Sanu drills 1.34% Cu over 43.78 m at Hambok

[FL]

Eritrea sees gold as mining takes root after fits and starts

April 30, 2006, 19 hours, 54 minutes and 19 seconds ago.

By Andnetwork .com

Thirteen years after winning independence, Eritrea is looking underground to pump life into its struggling economy as international mining companies begin work in earnest.


Initially beset by fits and starts, including a brief government suspension of their operations, five extraction firms share high hopes for the gold, copper and zinc reserves of Africa's newest nation.

Canadian Nevsun Resources and Sunridge Gold, US-Canadian Sanu Resources, Canadian-Eritrean MDN/Eritrean Minerals Corporation and Australia's Sub-Sahara have all entered the potentially lucrative search for minerals in Eritrea.

Although none has yet begun to extract, they have started preparatory work and Nevsun's Bisha mine in western Eritrea - the biggest project in the country - is expected to be the first to come on line in 2008, officials said.

"We hope the others will follow later," said Alem Kibreab, director general of Mines at the Ministry of Energy and Mines. "Mining will boost the economy, employment, the currency," he said in a recent interview. "But it has to be sustainable development."

Alem estimates the Bisha project alone will directly employ up to 400 people and provide ten times that number with indirect jobs, such as truck drivers and port workers.

Eritrean officials are reluctant to discuss how much revenue they expect from mining, but diplomatic sources say it could generate hundreds of million of dollars a year.

"The money will start coming in by the end of 2008", the director of Nevsun in Eritrea, Stan Rogers, said.

Based on geological surveys, Nevsun believes its miners will extract gold for the first two years, before hitting a copper reserve beneath for another two years and then zinc, he said.

"It's like a three-layered cake," Rogers said, expressing confidence that the Vancouver-based firm, which also operates in Mali, would more than recoup its initial investment.

Eritrean officials say Nevsun has spent $20 million on its projects thus far in the country with the figure expected to rise to $150 million once extraction begins at Bisha. But while operations are progressing smoothly now, that was not always the case as a British geologist working for Nevsun was murdered near the Bisha site in April 2003 in what the government said at the time may have been terrorism.

Then, in September 2004, Asmara ordered the three companies then working in Eritrea to stop work without explanation. The order - seen by diplomats here as a negotiating tactic to win an increase from 20 to 30 percent the number of shares the government can own in the operations - was rescinded five months later after intense negotiations.

Eritrean officials refuse to discuss specifics of the stop-work order but allow it was a questionable move as it spooked mining company investors and management.

"We will not make the same mistake again," Alem said. "It was due to our lack of experience, the idea was genuine: check that our 1995 mining law covered everything. "The companies are to be commended for the patience they showed," he said.

Nevsun's Rogers said that since the stop-work order was rescinded, there have been no problems.

If companies are attracted to Eritrea, it is because mining there is not a new phenomenon. Gold production in Eritrea was recorded in the times of the Pharaohs of the Fourth Dynasty, and there are records of gold mining during the Portuguese occupation in the 17th century.

Modern mining came with the advent of the Italians at the end of the 19th century, said Alem.

It then stagnated during Eritrea's thirty-year struggle for independence from Ethiopia, from 1961 to 1991, and was hindered by the arch-rival's bloody 1998-2000 border war.

Some diplomats have privately expressed concern that revenue from the mining might be used to fund arms purchases, particularly as tensions with Ethiopia remain high.

But Alem vehemently dismissed those concerns. "Why do people portray us as a belligerent society? The government spends a lot on schools and hospitals. We hope for peace, we know what guns can do," he said.

Source: METIMES

[FL]

What's this impending war actually about?

If you look at the map of the disputed border regions...

(See

http://newsimg.bbc.co.uk/media/images/40005000/gif/_40005693_ethiopia_eritrea2_map416.gif

)

It looks like a few snippets of parched, soil-free, significance-free desert out in the middle of nowhere. (I haven't been there so I'm just judging by the map and scenes of nearby places.) The disputed parcels are on both sides, small, and approximately equal. Why didn't somebody draw a clear line in the cease-fire? Why are there ANY remaining disputed regions?

There must be something bigger at stake.

[FL]

copy: not investing in Eritrea

cc from the West Africa gold IH board, I wrote re unacceptable political risk of Sanu:

I assume you're talking about Eritrea, not West Africa. I agree. I made the same decision based on the myterious "halt" of Eritrean gold exploration last year without any explanation from anybody. It looked like a classical shakedown rip-off of the explorers who had already invested a lot there. Luckily I'd sold all my Nevsun near the high, to buy a West African explorer.

Notice that this relates only to Eritrea, NOT to Sanu and Nevsun's West African projects. But it seemed as though they were being valued solely as Eritrean plays. Basically, the government of Eritrea lost is "cred" = credibility, with me at least.

Maybe I'll cc this to the Eritrea IH board if I can find it.

[BoomTime]

UN Security Council: Resolution 1640

http://www.un.org/Docs/sc/unsc_resolutions05.htm

[Ed Monton]

Horn of Africa 'crisis', UN warns

http://news.bbc.co.uk/1/hi/world/africa/4530642.stm

[Ed Monton]

Sunridge starts mining study, drills working at Asmara


2005-11-15 15:24 ET - News Release

Mr. Michael Hopley reports

SUNRIDGE GOLD ANNOUNCES THE COMMENCEMENT OF A CONCEPTUAL MINE PLAN FOR DEBARWA VMS MAIN ZONE

Sunridge Gold Corp. has commenced a conceptual mining study at the Debarwa VMS Main zone. All four contracted rigs are now operating at the Asmara project, Eritrea.

Conceptual mine plan

Sunridge has selected Beacon Hill Consultants 1988 Ltd. to complete a conceptual mining plan for the high-grade copper and gold Debarwa project, part of the Asmara project, Eritrea. Beacon Hill is a Vancouver-based consulting company with 20 years experience in the industry that has previously conducted similar studies for many companies and has also completed studies for such companies as Barrick Chile Ltda. and Teck Corp. Work has already commenced on the study, which is scheduled to be completed by February, 2006. The conceptual mine study will examine many aspects of the Debarwa project, including the geological model and resources, conceptual engineering and mine plan, metallurgy and mineral-processing options, capital and operating costs, financial analysis as well as environmental baseline data collection. Beacon Hill will also evaluate the possibility of fast-tracking Debarwa into production to benefit from the rise in commodity prices, the exceptionally high grades and the excellent infrastructure at the Asmara project. The Debarwa project has a paved road and power lines that link the project to the capital city of Asmara, 30 kilometres to the north.

The Beacon Hill study will focus on two areas known as Debarwa Main, which has been drilled to 20-metre centres over a strike length of 250 metres, and Debarwa South, on which Sunridge and joint-venture partner, Sub-Sahara Resources NL, completed over 14,000 metres of detailed definition drilling in 2004. Management of Sunridge believes that the size of the Debarwa deposit can be significantly expanded particularly along strike to the north and south and down dip.

25,000-metre drill program

Sunridge has contracted four drill rigs to complete a 25,000-metre drill program over the next several months. Two drill rigs are operating at the Debarwa high-grade copper-gold volcanogenic massive sulphide (VMS) area and two are operating at the Adi Nefas high-grade zinc-copper-gold VMS.

The Debarwa Main zone will be the immediate focus of the conceptual mine plan due to its exceptionally high grades and the current commodity prices. The purpose of this drill program is to test the potential strike extensions of the main zone to the north for 200 metres, to the south for 700 metres and to depth. In addition, several other gravity anomalies in close proximity to Debarwa Main zone will be tested. A minimum of 5,000 metres is budgeted for these areas with the objective of expanding the current zone of mineralization and testing the anomalies for new discovery potential.

Drilling this year at Adi Nefas has outlined a zone of high-grade mineralization over approximately 350 metres of strike length and to 225 metres in depth. Two drill rigs are working at Adi Nefas to test the potential strike extensions for one kilometre to the south, 700 metres to the north and to depth.

As part of this exploration/development program, several other targets will be tested, including the high-priority Emba Derho and Kodado VMS targets, where gossans are exposed over 700 metres in length at surface. Outcropping gossans have been the key indicator for VMS discoveries in Eritrea such as Debarwa, Adi Nefas and Nevsun's Bisha project.

[Ed Monton]

Sanu Resources provides overview of Eritrean drilling


2005-11-15 17:29 ET - News Release

Mr. Michael Winn reports

SANU RESOURCES LTD.: ERITREA UPDATE

Sanu Resources Ltd. has completed the initial drilling on the Bisha North prospect on the Kerkebet River exploration licence and the Mai Malih and Ashelli prospects on the Mogoraib River exploration licence. The company has also initiated drilling on its gold projects within the Fanco and Guluj licences.

VMS drilling

At Bisha North, eight diamond drill holes for a total of 1,597 metres were drilled to test pyritic siliceous rocks and gossan horizons associated with coincident gravity and EM anomalies in felsic tuffs and volcanics. The drilling encountered disseminated sulphide mineralization, as well as massive sulphide and stringer mineralization. Although pyrite was the dominate sulphide encountered, significant sphalerite and chalcopyrite mineralization was also present in certain horizons. The drilling to date has indicated a small volume of massive and disseminated sulphide mineralization.

At Mai Melih, three diamond drill holes for a total for 510 metres were drilled to test the exposed gossan horizon. Drilling encountered disseminated sulphide (dominantly pyrite) mineralization in graphitic metapelites and narrow stringers of galena mineralization. The economic potential of Mai Melih seems limited although the widely spaced drill holes have only tested 500 metres of strike length.

At Ashelli, four diamond drill holes for a total of 618 metres tested a gossan and siliceous horizon, where surface soil sampling has identified an anomalous zone of oxide copper and gold mineralization. Drilling encountered a corresponding oxide zone extending to about 100 metres below the surface, as well as a disseminated and stratiform sulphide mineralization (pyrite, chalcopyrite, and sphalerite) at depth. Approximately 100 metres of more than 800 metres of strike length of exposed prospective horizon has been tested.

Approximately half of the drill core samples have been sent to Genalysis Laboratories in Australia for analysis with the remaining samples to be sent over the next two weeks. The company anticipates releasing results upon receipt of all the samples which should occur sometime in December.

Gold drilling

The company has completed three RC drill holes (200 metres) on the Melhoy gold prospect to test this extent of gold mineralization discovered during last season's drilling and four holes (about 250 metres) on the Adi Kelbay quartz vein swarm on the Fanco licence. RC drilling is continuing on the Adi Kelbay and Hablesh South prospects where rock chip sampling of quartz veins have returned up to 10 grams to 32 grams per tonne in gold. Upon completing the drilling on Adi Kelbay and Hablesh south, the rig will return to Melhoy to continue testing the extent of the mineralized zone.

Dr. Demetrius Pohl, a qualified person as defined by National Instrument 43-101 and vice-president of exploration for the company, has reviewed and verified the technical mining information contained in this news release.

[Tackler]

Well except for my last post which is a bit of history on O&G exploration in Eritrea I haven't posted here for over a year, so I have no idea.

[BoomTime]

Hey Tackler,

So how's the political situation in Eritrea for the resources there, now? Has it got better?

Thanks
Boom

[Tackler]

O&G exploration in Eritrea...

From http://www.mbendi.co.za/indy/oilg/af/er/p0005.htm

"Hydrocarbon exploration, primarily offshore in the Red Sea, began in the 1960's when Eritrea was still federated with Ethiopia. In 1995, Eritrea signed a production sharing contract (PSC) with U.S.-based Anadarko Petroleum (Anadarko) for the offshore Zula Block. Anadarko signed a second PSC for the offshore Edd Block, located south of the Zula Block, in September 1997. Anadarko announced, in December 1997, that it had reached an agreement with ENI/Agip (Agip) to swap interests in exploration acreage. Anadarko received a 25% interest in a Tunisian block operated by Agip, and Agip received a 30% share in the 6.7-million acre Zula Block and 30% interest in the Edd Block. Burlington Resources, a U.S.-based independent, later joined the consortium by acquiring a 20% interest in both acreages. Anadarko's first two exploration wells, both drilled on the Zula Block, were unsuccessful. In January 1999, a third dry well, Edd-1 on the Edd Block, was drilled. Citing the disappointing exploration results, Anadarko and its partners ceased exploration activities and relinquished their rights to the offshore blocks."

[Ed Monton]

Lundin gives review of Sanu's latest news makers


2005-07-28 22:27 ET - In the News

In the July, 2005, edition of the Gold Newsletter, Brien Lundin gives a brief review of Sanu Resources Ltd.'s recent exploration efforts, which has made some news in the past weeks. Mr. Lundin said buy Sanu, now trading at 72 cents, at $1.85 in July, 2004. An investment of $1,000 would now be worth a questionable $379.44. The letter writer delves first into the company's Eritrean holdings, where regional prospecting in Kerkebet and Mogoraib has turned up 10 volcanic massive sulphide deposits. Sanu is drill testing two of the most promising of these anomalies. It will throw in about 1,000 metres of drilling at the Bisha North target, which is on strike with Nevsun Resources Ltd.'s Bisha deposit. Meanwhile the 1732 EM anomaly 14 kilometres to the north will also see Sanu's drill bit. The company will conduct surface preparation and ground surveying at the other targets. For now, the company cannot work too fast because of the rainy season, but drilling should expand quite a bit after September. In Burkina Faso, Sanu is also doing some preparation work at its Moule gold prospect. Moule, the company's latest purchase, lies south of the Poura gold mine and has seen much artisanal mining.

[Ed Monton]

Casey says market ready to mull Sanu drill results


2005-07-25 19:20 ET - In the News

Douglas Casey, writing in the July 1, 2005, edition of his International Speculator, refreshes his buy of Sanu Resources Ltd. at 75 cents. Mr. Casey said buy in May, 2004, at $2, and he said sell in October, 2004, at 43 cents, after meddling by the Eritrean government. An investment of $1,000 resulted in a loss of $821. Pleased with later political developments, he said buy in April, 2005, at 81 cents. An investment of $1,000 would be worth $897 today. The letter writer says Sanu is very active just now, with drilling in progress or planned this summer on eight projects, but Bisha North is where the market's attention lies. Bisha North adjoins Nevsun Resources Ltd.'s world-class Bisha deposit in Eritrea. If the drills indicate that SNU is sitting on an extension of Bisha -- and to look at the surface geology, it is hard to imagine that they are not -- the impact on this microcap could be huge. For the short run, this has become a drill play and if you own it, you might as well hang in for the ride. Investors will not have to wait long: This is a company at the crossroads, Mr. Casey says. Shortly, it should either head on down the tracks to a big payday, or get hit by a speeding train.

[Ed Monton]

SNU

[Ed Monton]

SGC

[Ed Monton]

Sunridge Gold drills eighth hole at Adi Nefas Gossan


2005-07-28 09:05 ET - News Release

Mr. Michael Hopley reports

SUNRIDGE GOLD CORP.: UPDATE ON DRILL PROGRAM, ASMARA PROJECT, ERITREA

Sunridge Gold Corp. has released a progress report on the 10,000-metre diamond drill program that commenced July 5, 2005, on the Adi Nefas Gossan volcanogenic massive sulphide prospect, part of the Asmara project in Eritrea. The company is currently drilling hole No. NG-014, the eighth hole thus far in the program. The drill is operating two shifts per day (24 hours); thus, it is expected that a significant amount of assay results will be available in mid-to-late September. Given the favourable topography of the Asmara project, the rainy season has minimal impact on the drill program.

Drilling to date has focused on following up the previously reported high-grade gold, copper and zinc drill results at the Adi Nefas Gossan prospect with both infill and step-out drilling. As part of this program, drilling will also drill test down-dip and along-strike extensions at the high-grade copper/gold Debarwa deposit and drill test satellite targets recently defined by geological mapping and geophysics on the Debarwa and Medrizien licences.

[Ed Monton]

Eritrea Taps TGS-NOPEC to Promote Zula Exploration Block

HOUSTON--(CCNMatthews - Jul 21, 2005) -

Eritrea's Ministry of Energy and Mines has reached an agreement with TGS-NOPEC Geophysical Company (TGS) to promote a licensing opportunity in the nation's Zula block. Zula, measuring 7,000 square kilometers, is located in the shallow waters (<60 meters) of the Red Sea offshore central Eritrea. The region has several proven petroleum systems with source rocks, numerous oil gas and condensate shows and discoveries. A number of large leads and prospects have already been mapped and documented.

Eritrea, a stable African nation of 4.5 million citizens off the southern Red Sea, is offering attractive and negotiable licensing terms for the block. TGS has created a data room at its Houston office to display seismic data, well logs and an interpretation report related to the project.

To arrange for a presentation or for further information, please contact:

Richard Horscroft

TGS-NOPEC Geophysical Company

[phone]

[e-mail]

Teklehaimanot Debretsion

Ministry of Energy and Mines

[phone]

[e-mail]

MULTIMEDIA AVAILABLE:

http://www.businesswire.com/cgi-bin/mmg.cgi?eid=4935524

[Ed Monton]

Nevsun Resources releases final Harena drill results


2005-06-09 17:16 ET - News Release

Mr. John Clarke reports

NEVSUN RESOURCES LTD.: HARENA DRILL RESULTS AND SIGNIFICANT NEW GRAVITY ANOMALY DISCOVERIES AT BISHA PROJECT

Nevsun Resources Ltd. has released both the final drill results of the recently completed Harena drill program in Eritrea as well as the discovery of significant new gravity anomalies adjacent to the newly discovered Harena deposit. The original Harena discovery drill holes were reported in Stockwatch on April 5, 2005. The Harena deposit is located 9.5 kilometres to the southwest from Nevsun's high-grade Bisha main volcanogenic massive sulphide (VMS) deposit. Harena was an important find for Nevsun as it represents a third VMS discovery on the Bisha concession; represents a good satellite opportunity for supplemental feed for the Bisha mine site currently undergoing feasibility; and significantly extends the exploration district for potential VMS opportunities.

Harena was initially targeted as a coincident gravity and electromagnetic anomaly. Having successfully intersected massive sulphides with the Harena discovery holes, Nevsun extended its gravity investigations along strike of the Harena deposit a further 3.5 kilometres. This work was completed during the current drill campaign and has resulted in the identification of several larger and stronger gravity signatures. A drill program to test these anomalies will be prepared for the fall of 2005.

This release provides a table of Harena drill hole results.

Harena drill hole data

A total of 20 diamond drill holes has been completed on the Harena deposit to date, with a series of sections 100 metres apart having been drill tested over a strike length of 400 metres. Initial assay results from the first four holes were released in April and can be accessed on Nevsun's website.

A summary of the assay results is as follows.

 
                Table 1 
  
          HARENA DRILL HOLE RESULTS 
  
 Hole  Length Au   Ag   Cu    Pb   Zn 
 No.     m   g/t   g/t   %    %    %  
  
 Oxide 
  
 H-005  4.3  1.33  0.7  0.03 0.04 0.07 
 H-009  9.0  0.68 23.7  0.01 0.14 0.03 
  
 Primary 
  
 H-006  7.4  0.34 22.6  0.78 0.14 7.25 
 and   30.3  1.40 30.2  0.86 0.19 0.32 
 H-007  4.7  0.03  7.9  0.08 0.16 3.10 
 H-010  9.1  0.16  8.5  0.20 0.00 1.30 
 and    9.1  0.12  5.4  0.28 0.01 6.12 
 H-011 22.4  0.34 20.9  0.85 0.06 3.58 
 Incl.  6.8  0.27 16.3  0.26 0.11 6.54 
 Incl.  7.2  0.42 25.2  1.54 0.01 4.53 
 H-012  3.8  0.59 11.5  1.62 0.00 0.12 
 H-013 14.7  0.11 12.4  0.28 0.15 5.10 
 and    3.4 20.75 299.2 0.31 2.50 0.17 
 H-014 12.8  0.35 20.7  0.98 0.03 3.15 
 and    5.5  0.73 20.1  0.12 0.14 0.03 
 H-015  3.0  1.03 46.5  0.08 0.11 0.21 
 and    8.1  0.33 24.3  1.19 0.03 2.04 
 H-016 20.3  0.97 21.9  0.68 0.08 0.89 
 Incl.  7.1  0.68 33.8  0.93 0.19 1.92 
 H-018  2.0  0.21 15.5  0.31 0.06  1.7 
 and    1.0  0.12  0.5  1.59 0.00 0.02 
  
 

..........


Holes H-008, H-017, H-019 and H-020 did not intersect mineralization of significance. Hole H-019 targeted an electromagnetic conductor located 200 metres to the north of the massive sulphide horizon. The anomaly was interpreted to be caused by graphite and graphitic sediments and volcanic rocks were intersected. Hole H-020 tested a gravity anomaly located 400 metres to the southeast of the sulphide zone. The gravity anomaly was not explained and additional work is planned to define this target further.

The Harena deposit is interpreted to be cut off to the northeast and open to the southwest. Hole H-012 contains the deepest intersection to date at a vertical depth of approximately 175 metres. The massive sulphides in this hole are diminishing in width when compared with the previous five holes on the same section.

Section 5800, intercepts from left to right:


H-012: 0.59 gram per tonne gold, 11.5 g/t silver, 1.6 per cent copper copper, 0.12 per cent zinc over 3.8 metres



H-011: 0.3 g/t Au, 25 g/t Ag, 0.8 per cent Cu, 3.9 per cent Zn over 26.4 m



H-004: 0.6 g/t Au, 26 g/t Ag, 1.0 per cent Cu, 2.8 per cent Zn over 22.95 m



H-003: 1.0 g/t Au, 23 g/t Ag, 1.0 per cent Cu, 3.0 per cent Zn over 22.5 m



H-002: 2.4 g/t Au, 105 g/t Ag, 0.44 per cent Cu over 10.5 m



H-001: 3.2 g/t Au over 12.0 m


Gravity anomalies located adjacent to Harena

Following the success of intersecting a massive sulphide deposit at Harena, a line grid was established to cover favourable stratigraphy for an additional 3.5 kilometres to the southwest of the Harena deposit. Gravity, HLEM, magnetometer, soil geochemistry and geological mapping surveys have been carried out to determine if additional VMS deposits are present in the area.

The gravity survey has defined several strong residual responses up to 1.0 mgal to the southwest of the Harena deposit. One anomaly appears to be directly along strike from Harena and occurs over a strike length of at least 1,200 metres. All the newly defined gravity responses underlie areas of significant transported overburden thickness.

A map of the recently completed gravity work defines the relatively small and weak response that signatures the Harena deposit, however the significantly stronger new gravity responses defined in the region are quite evident. The gravity signature of the Bisha main deposit is also shown for comparison purposes only.

A significant amount of drilling will be required to assess the resource at Harena as well as to test new the targets that are emerging from the recently completed survey work. The size of the gravity anomalies provides an exciting opportunity for further exploration.

Bill Nielsen, vice-president of exploration for Nevsun, a qualified person under National Instrument 43-101, supervised and directed all work associated with the drilling program.

Sample preparation and analysis were conducted at ALS Chemex of Vancouver, Canada.

[Ed Monton]

Sunridge Gold Corp.: Asmara Project Licenses Extended
as Sunridge Takes Over Management

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 16, 2005) - Sunridge
Gold Corp. ("Sunridge") (TSX VENTURE:SGC) announces that its
joint-venture partner, Sub-Sahara Resources NL, ("Sub-Sahara") has
received notification from the Minister of Energy and Mines in Eritrea
that the renewal date of all three licenses that make up the Asmara
Project has been extended to May 30, 2006. Under the Eritrean mining
code an additional year of exploration (to May 30, 2007) is allowable on
these licenses provided that sufficient exploration work is completed.
It is anticipated that after that date the licenses would be converted
to long-term mining licenses.

In addition, Sunridge has notified Sub-Sahara that it has assumed
management of the Asmara project. As operator Sunridge is currently
planning the resumption of the 2005 exploration program.

As previously announced, Sunridge has also recently notified Sub-Sahara
that Sunridge has earned a 40% interest in the Asmara Project by
spending the required US$2.4 million in exploration expenditures and
that it intends to earn an additional 30% interest in the project by
continuing to be the sole financial contributor and by completing a
bankable feasibility study within the required 3-year period.

The balance of assays from the August 2004 drill program on the Adi
Nefas zinc/gold prospect as well as the Gupo Gold deposit are expected
in early March.

Michael Hopley, President and CEO of Sunridge Gold Corp. is the
Qualified Person as defined in NI 43-101, and is responsible for the
preparation of the information in this news release.

SUNRIDGE GOLD CORP.

Michael Hopley, President and Chief Executive Officer

-30-

FOR FURTHER INFORMATION PLEASE CONTACT:
Sunridge Gold Corp.
Don Halliday
[phone]
[phone] (FAX)
[e-mail]
www.sunridgegold.com
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.

[Ed Monton]

Sunridge Reports More High-Grade Gold, Copper and Zinc
Assays From Asmara Project, Eritrea

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 19, 2005) - Sunridge
Gold Corporation ("Sunridge") (TSX VENTURE:SGC)ounce drill results from
the Debarwa gold and base metals VMS deposit and initial results from
the Gupo Gold deposit. These assay results are from drill programs
completed prior to the September 2nd, 2004 halt work order implemented
by the Eritrean Government which was lifted on January 14th, 2005. The
Debarwa and Gupo Deposits are two of several mineralized targets within
the Asmara Project which covers 1,300 square kilometres near the capital
city of Asmara in east-central Eritrea.

The Debarwa results continue to show high-grade mineralization in all
three zones of the deposit over significant widths. In addition, the
positive assays from the initial drill holes at the Gupo Gold Deposit
support past results for the potential delineation of a significant gold
deposit.

 
  
 HIGHLIGHTS 
  
 Debarwa Gossan Zone (gold enriched): 
  
 DEBD-029   intersected 17.16 m grading 8.53 g/t Au 
 DEBD-035   intersected 11.00 m grading 7.70 g/t Au 
 DEBR-059   intersected 14.00 m grading 6.21 g/t Au 
 DEBR-085   intersected 9.00 m grading 4.16 g/t Au 
 DEBR-D-053 intersected 6.96 m grading 13.48 g/t Au 
  
 Debarwa Supergene and Primary Zones (copper and zinc enriched): 
  
 DEBD-031   intersected 13.80 m grading 2.74 g/t Au and 8.90% Cu 
 DEBD-032   intersected 5.02 m grading 2.02 g/t Au and 12.15% Cu 
 DEBD-034   intersected 9.67 m grading 1.13 g/t Au, 3.65% Cu and 
             9.16% Zn 
 DEBD-036   intersected 5.25 m grading 1.50 g/t Au, 2.78% Cu and 
             12.24% Zn 
 DEBD-038   intersected 10.37 m grading 1.29 g/t Au, 3.25% Cu and 
             7.21% Zn 
 DEBR-054   intersected 13.00 m grading 4.23 g/t Au and 9.92% Cu 
 DEBR-068   intersected 6.00 m grading 2.08 g/t Au, 1.83% Cu and 
             9.20% Zn 
 DEBR-069   intersected 9.00 m grading 1.82 g/t Au, 1.52% Cu and 
             5.12% Zn 
 DEBR-D-057 intersected 13.25 m grading 2.71 g/t Au and 4.73% Cu 
 DEBR-D-065 intersected 15.12 m grading 2.00 g/t Au, 4.42% Cu and 
             8.23% Zn 
 DEBR-D-075 intersected 7.38 m grading 1.39 g/t Au, 1.80% Cu and 
             4.35% Zn 
 DEBR-D-081 intersected 10.00 m of 4.61% Cu 
 DEBR-D-092 intersected 5.00 m grading 1.07 g/t Au, 1.03% Cu and 
             10.51% Zn 
 DEBR-D-096 intersected 10.00 m grading 1.69% Cu and 9.37% Zn 
  
 Gupo Gold Highlights: 
  
 GG-001-RD intersected 38.50 m grading 2.12 g/t Au 
 GG-002-R intersected 26.00 m grading 1.03 g/t Au 
  
 

.........


Debarwa Copper Gold VMS (volcanogenic massive sulphide) Deposit

Table 1 summarizes the most significant assay results from 73 drill
holes completed at both the Debarwa Main and Debarwa South prospects in
late August 2004. The Debarwa South zone is located approximately 750
metres south of Debarwa main. Mineralization remains open to the south
of Debarwa South, between Debarwa Main and Debarwa South and to depth.
Unreported drill holes returned no significant results.

The Debarwa deposit is a VMS deposit with a near surface gossan zone
(depleted in copper but enriched in gold) underlain by a supergene zone
(high-grade copper plus gold) underlain by a supergene/primary
transition zone (high-grade zinc) underlain by the primary zone (copper,
gold and zinc). A map showing the drill hole locations of the new
drilling results can be seen on the Sunridge webpage at
www.sunridgegold.com.

 
  
 Table 1: Selected Significant intersections for gold, silver, copper 
          and zinc at Debarwa Main and South 
  
 ------------------------------------------------------------- 
                                       From        To 
                    Dip   Azimuth  ------------------ Interval 
 Hole Id       (degrees) (degrees)       (m)       (m)      (m) 
 ------------------------------------------------------------- 
 DEBD-029           -60       110     34.00     51.16    17.16 
 ------------------------------------------------------------- 
 DEBD-031           -60       110     58.20     72.00    13.80 
 ------------------------------------------------------------- 
 DEBD-032           -60       110     71.08     76.10     5.02 
 ------------------------------------------------------------- 
 DEBD-034           -60       110     85.13     94.80     9.67 
 ------------------------------------------------------------- 
 DEBD-035           -60       110     43.00     54.00    11.00 
 ------------------------------------------------------------- 
 DEBD-036           -60       110     97.75    103.00     5.25 
 ------------------------------------------------------------- 
 And                                 111.00    114.70     3.70 
 ------------------------------------------------------------- 
 DEBD-038           -60       110    130.63    141.00    10.37 
 ------------------------------------------------------------- 
 DEBR-054           -60       110     65.00     78.00    13.00 
 ------------------------------------------------------------- 
 DEBR-059           -60       110     28.00     42.00    14.00 
 ------------------------------------------------------------- 
 DEBR-063           -60       110     36.00     44.00     8.00 
 ------------------------------------------------------------- 
 DEBR-068           -60       110     92.00     98.00     6.00 
 ------------------------------------------------------------- 
 DEBR-069           -60       110     96.00    105.00     9.00 
 ------------------------------------------------------------- 
 DEBR-071           -60       110     98.00    101.00     3.00 
 ------------------------------------------------------------- 
 DEBR-073           -60       110    126.00    129.00     3.00 
 ------------------------------------------------------------- 
 DEBR-078           -60       110    125.00    129.00     4.00 
 ------------------------------------------------------------- 
 DEBR-085           -90         0      0.00      9.00     9.00 
 ------------------------------------------------------------- 
 DEBR-D-033         -62       110     36.00     51.40    15.40 
 ------------------------------------------------------------- 
 DEBR-D-035         -60       110     82.05     83.70     1.65 
 ------------------------------------------------------------- 
 DEBR-D-052         -55       110     60.10     63.10     3.00 
 ------------------------------------------------------------- 
 DEBR-D-053         -60       110     34.00     40.96     6.96 
 ------------------------------------------------------------- 
 DEBR-D-057         -60       110     89.00    102.25    13.25 
 ------------------------------------------------------------- 
 DEBR-D-065         -60       110     85.58    100.70    15.12 
 ------------------------------------------------------------- 
 DEBR-D-067         -60       110     48.00     55.00     7.00 
 ------------------------------------------------------------- 
 DEBR-D-070         -60       110     53.00     56.00     3.00 
 ------------------------------------------------------------- 
 And                                  85.00     88.00     3.00 
 ------------------------------------------------------------- 
 DEBR-D-075         -60       110     93.00     96.00     3.00 
 ------------------------------------------------------------- 
 And                                 125.00    132.38     7.38 
 ------------------------------------------------------------- 
 DEBR-D-076         -60       110    122.55    129.00     6.45 
 ------------------------------------------------------------- 
 DEBR-D-079         -60       110    172.97    177.00     4.03 
 ------------------------------------------------------------- 
 DEBR-D-080         -60       110    154.31    157.31     3.00 
 ------------------------------------------------------------- 
 DEBR-D-081         -60       110     65.00     75.00    10.00 
 ------------------------------------------------------------- 
 And                                  78.00     81.20     3.20 
 ------------------------------------------------------------- 
 DEBR-D-089         -60       110     72.20     75.40     3.20 
 ------------------------------------------------------------- 
 DEBR-D-091         -60       110     81.00     89.00     8.00 
 ------------------------------------------------------------- 
 DEBR-D-092         -60       110    118.00    123.00     5.00 
 ------------------------------------------------------------- 
 And                                 130.50    135.00     4.50 
 ------------------------------------------------------------- 
 DEBR-D-096         -60       110    141.20    151.20    10.00 
 ------------------------------------------------------------- 
 DEBR-D-097         -60       110    158.56    161.50     2.94 
 ------------------------------------------------------------- 
 DEBR-D-099         -60       110    138.11    141.11     3.00 
 ------------------------------------------------------------- 
 And                                 160.64    173.55    12.91 
 ------------------------------------------------------------- 
  
  
 -------------------------------------------------------------------- 
                     Au        Ag        Cu        Zn 
 Hole Id           (g/t)     (g/t)       (%)       (%)    Zone  Level 
 -------------------------------------------------------------------- 
 DEBD-029          8.53    133.13      0.77      0.02     Main   L/SG 
 -------------------------------------------------------------------- 
 DEBD-031          2.74     51.03      8.90      0.04     Main     SG 
 -------------------------------------------------------------------- 
 DEBD-032          2.02     36.64     12.15      0.04     Main     SG 
 -------------------------------------------------------------------- 
 DEBD-034          1.13     41.11      3.65      9.16     Main   SG/P 
 -------------------------------------------------------------------- 
 DEBD-035          7.70     16.02      0.02      0.02     Main      L 
 -------------------------------------------------------------------- 
 DEBD-036          1.50     18.93      2.78     12.24     Main   SG/P 
 -------------------------------------------------------------------- 
 And               0.35     26.07      6.25      0.59     Main      P 
 -------------------------------------------------------------------- 
 DEBD-038          1.29     28.17      3.25      7.21     Main      P 
 -------------------------------------------------------------------- 
 DEBR-054          4.23     84.22      9.92      0.04     Main     SG 
 -------------------------------------------------------------------- 
 DEBR-059          6.21      9.46      0.03      0.01     Main      L 
 -------------------------------------------------------------------- 
 DEBR-063          3.31     98.83      0.92      0.02     Main     SG 
 -------------------------------------------------------------------- 
 DEBR-068          2.08     58.10      1.83      9.20     Main   SG/P 
 -------------------------------------------------------------------- 
 DEBR-069          1.82     39.29      1.52      5.12     Main   SG/P 
 -------------------------------------------------------------------- 
 DEBR-071          1.99     34.20      3.29      1.04     Main   SG/P 
 -------------------------------------------------------------------- 
 DEBR-073          1.56     35.13      1.83      1.67     Main      P 
 -------------------------------------------------------------------- 
 DEBR-078          1.76     38.35      2.59      3.79     Main      P 
 -------------------------------------------------------------------- 
 DEBR-085          4.16     18.91      0.09      0.01     Main      G 
 -------------------------------------------------------------------- 
 DEBR-D-033        2.71     14.87      0.02      0.02     Main   L/SG 
 -------------------------------------------------------------------- 
 DEBR-D-035        1.12     30.29      5.26      0.34     Main     SG 
 -------------------------------------------------------------------- 
 DEBR-D-052        1.41     85.48      1.89      0.19     Main     SG 
 -------------------------------------------------------------------- 
 DEBR-D-053       13.48    177.86      0.04      0.02     Main      L 
 -------------------------------------------------------------------- 
 DEBR-D-057        2.71     48.20      4.73      0.13     Main   SG/P 
 -------------------------------------------------------------------- 
 DEBR-D-065        2.00     41.48      4.42      8.23     Main     SG 
 -------------------------------------------------------------------- 
 DEBR-D-067        2.11     42.84      3.53      0.11     Main     SG 
 -------------------------------------------------------------------- 
 DEBR-D-070        5.69     16.67      0.01      0.01     Main      L 
 -------------------------------------------------------------------- 
 And               1.52     44.87      2.06      0.07     Main     SG 
 -------------------------------------------------------------------- 
 DEBR-D-075        1.50     45.43      3.06      6.42     Main     SG 
 -------------------------------------------------------------------- 
 And               1.39     29.10      1.80      4.35     Main      P 
 -------------------------------------------------------------------- 
 DEBR-D-076        0.74     22.84      2.75      3.37     Main      P 
 -------------------------------------------------------------------- 
 DEBR-D-079        3.84     49.79      1.65      7.72     Main      P 
 -------------------------------------------------------------------- 
 DEBR-D-080        0.40     19.30      4.04      0.19     Main      P 
 -------------------------------------------------------------------- 
 DEBR-D-081        0.50     18.55      4.61      0.09     Main     SG 
 -------------------------------------------------------------------- 
 And               1.47    143.18     10.32      0.18     Main     SG 
 -------------------------------------------------------------------- 
 DEBR-D-089        0.97     15.96      2.98      0.03    South     SG 
 -------------------------------------------------------------------- 
 DEBR-D-091        0.76     16.64      6.25      0.02    South     SG 
 -------------------------------------------------------------------- 
 DEBR-D-092        1.07      9.54      1.03     10.51     Main      P 
 -------------------------------------------------------------------- 
 And               0.19     16.51      5.32      0.10     Main      P 
 -------------------------------------------------------------------- 
 DEBR-D-096        0.67     19.14      1.69      9.37     Main      P 
 -------------------------------------------------------------------- 
 DEBR-D-097        0.26     19.61      9.83      0.05     Main      P 
 -------------------------------------------------------------------- 
 DEBR-D-099        2.39     25.30      0.52      3.50     Main      P 
 -------------------------------------------------------------------- 
 And               0.96     15.83      1.10      2.49     Main      P 
 -------------------------------------------------------------------- 
  
 

.........


Gupo Gold Results

Only six drill holes were completed at the Gupo (formerly Adi Nefas
Doop) gold deposit prior to the stoppage of exploration activities. The
property is located 8 kilometres north of the capital city of Asmara and
38 kilometres north of the Debarwa deposit. To date, results are only
available for four of these holes and three of these holes returned
significant gold values (Table 2). These results from the initial drill
holes at the Gupo Gold Deposit support past results for the potential
delineation of a significant gold deposit. Drilling will resume at Gupo
as soon as possible.

The Gupo gold deposit area contains a series of shallow open-pits
extending for over 2 kilometres of strike and was exploited by Italian
miners during Eritrea's colonial period. Gold mineralization occurs
within a series of structurally controlled metamorphic schists and has
undergone extensive exploration by previous explorers.

 
  
 Table 2: Selected Significant intersections for gold, silver, copper 
          and zinc at Gupo Gold Prospect 
  
 -------------------------------------------------------------------- 
                  Dip    Azimuth   From     To Interval     Au 
 Hole Id     (degrees)  (degrees)    (m)    (m)      (m)  (g/t)  Zone 
 -------------------------------------------------------------------- 
 GG-001-RD        -50        285  38.00  76.50    38.50   2.12   Gupo 
 -------------------------------------------------------------------- 
 GG-002-R         -50        285  55.00  81.00    26.00   1.03   Gupo 
 -------------------------------------------------------------------- 
 GG-003-RD        -60        285  67.00  70.00     3.00   7.13   Gupo 
 -------------------------------------------------------------------- 
  
 

........


Adi Nefas Gossan

Samples from six drill holes completed at the Adi Nefas Gossan
(zinc/copper/gold) prospect prior to the stoppage of exploration work
will now be processed and assayed. These samples have been unavailable
to the joint venture during the stoppage. The Adi Nefas Gossan is a VMS
deposit similar in style to the Debarwa copper/gold deposit and it has
had historical significant zinc, copper, gold and silver credits
reported from limited drilling by previous operators.

Future Exploration Activities

Sunridge and its joint-venture partner Sub-Sahara Resources NL are
currently formulating plans for the resumption of exploration work on
the Asmara Project. These plans will be announced when completed.

Sunridge has earned a 40% interest in the Asmara Joint Venture and can
earn a further 30% interest by continuing to be the sole financial
contributor to the joint venture and by completing a bankable
feasibility study. Sunridge can earn up to a total 90% interest by
financing the project through to production and is in the process of
assuming its role as Manager of the joint venture.

Notes:

1. Hole designation ending in "R" are reverse-circulation holes, those
ending in "D" are diamond drill holes and those holes ending in "RD" are
those started with reverse-circulation and completed with diamond
drilling. In the Level column "G" refers to the Gossan Zone, "L" refers
to the Leached Zone, "SG" refers to the Supergene Zone, and "P" refers
to the Primary Zone.

2. A Quality Assurance/Quality Control program is part of the drilling
program on the Asmara Project. This program includes chain of custody
protocol as well as systematic submittals of standards, duplicates and
blank samples into the flow of samples produced by the drilling.

3. A description of the geology, sampling procedures, and the Company's
laboratory Quality Assurance / Quality Control procedures are as
described in the Company's National Instrument 43-101 Technical Report
filed on February 17, 2004 and amended by the Amended Technical Report
filed dated April 27, 2004. This report is available at www.sedar.com.

4. Samples are prepared at African Horn Testing Services (Eritrea) and
analyzed at Genalysis Laboratories (a NATA registered laboratory) in
Perth, Western Australia.

5. The Qualified Person for the release of this exploration information
is Michael Griffiths Aus IMM, the Chief Executive Officer of Sub-Sahara.
Michael Griffiths is the Qualified Person for the Asmara Project.

SUNRIDGE GOLD CORP.

Michael Hopley, President and Chief Executive Officer

-30-

FOR FURTHER INFORMATION PLEASE CONTACT:
Sunridge Gold Corp.
Don Halliday
[phone] or Direct: [phone]
[phone] (FAX)
Email: [e-mail]
Website: www.sunridgegold.com
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.

[Ed Monton]

There is still risk but it is the risk that has always been there. It seems to me the situation with the forced halt is resolved. The government just wanted a bigger slice of the pie.

[roan]

I am still worried about Eritrea and dumped most of what I had on the recent rise. I have been in the country and love it BUT I do not have confidence in the Government and external influences that could screw things up again. Better risk reward elsewhere.

[Ed Monton]

Just you and me. I'm thinking about picking up some SNU.

[roan]

wow this place is dead considering latest news

[roan]

Looks like China was not the issue, on the surface at least. It is the Gov't wanting a chance at a bigger slice of the pie.

[roan]

If it is not the China issue, which to me is a possibility, then the Gov't wants a bigger cut of the pie. Stay tuned. The volitility of Nevsun stock is much greater than the others involved in Eritrea, or so it seems.

[Ed Monton]

Nevsun CEO to meet with Eritrean mining minister

2005-01-05 15:10 ET - News Release


Dr. John Clarke reports

NEVSUN RESOURCES LTD.-ERITREA UPDATE: MEETING REQUESTED BY MINISTER OF ENERGY AND MINES

Nevsun Resources Ltd. has received a letter from the Minister of Energy and Mines of Eritrea requesting a consultation meeting at the company's earliest convenience. The letter commends the company's "patience and co-operative stance."

Dr. John Clarke, president and chief executive officer, has made arrangements to be in Eritrea the week of Jan. 10.

Nevsun, along with all other mineral exploration companies working in Eritrea, has been under a stop work order from the government of Eritrea since Sept. 2, 2004. The request for a meeting from the minister is very encouraging.

[Ed Monton]

China Seeks To Control Supplies of Metals And Minerals At Source, And Eritrea Fits The Bill.

http://www.minesite.com/storyFull.php?storySeq=263

Just before Christmas the western mining world was reminded yet again by the proposed merger between APAC and China Gold that China will remain pivotal to demand for metals and minerals in 2005 and that Chinese funded companies will be making use of US dollars earned from exports to acquire advanced stage mining assets. None of the cases so far has been to a pattern, and most have yet to mature, but that is the thrust, and it makes a lot of sense. China is accumulating massive reserves of fast depreciating US dollars and wants to make best use of them. If ten years’ supply of a vital commodity can be acquired in a single transaction, with more to come in the years ahead as further resources are confirmed, the Chinese will prove to have been very shrewd.

The classic example so far has been the proposed acquisition by China Minmetals of Noranda which is one of Canada’s leading copper and nickel companies with investments in fully integrated zinc and aluminium assets. The current state of play on the Minmetals bid is that it has run out of the original period of exclusivity granted in September as due diligence is taking longer than expected. Discussions are still going on and both Noranda and Brascan, which is a 42 per cent shareholder are in favour of a deal. Minmetals is one of China’s leading traders in metal and minerals and was responsible for 50 per cent of the alumina and 40 per cent of the copper imported in 2003.

Now it wants to transform itself into a broadly based resource company and Noranda is an ideal target with its mining and metallurgical expertise, leading edge technology and world wide operations. The betting has to be that the deal will go through and this could have some very positive implications for little Australian listed Apex Minerals as Noranda is already carrying out the wishes of what it regards as its future master with the alliance recently announced with Apex to explore for giant porphyry copper projects in the east of China’s Xinjiang province. Two applications have already been made for prospective acreage containing two targets and these are said to be moving steadily through the system.

Questions as to how Noranda will be managed under the control of China Minmetals will be answered over time. What is in little doubt, however, is that production will take precedence over profitability and the first clue to this is the timing of the purchase when metal and mineral prices are close to multi-year highs. Only by controlling its sources of supply can this fast growing country iron out all the problems of price and demand which are endemic in a free market. For instance it has invested US$4 billion in Sudan, most of which is directed at oil. To secure its investments in a volatile part of the world China has a large number of soldiers on the ground - a point that the bellicose Blair might consider when threatening action from an EU force around Darfur.

The other point worth remembering is that Sudan lies next to Eritrea and some strange things happened in Eritrea in 2004. Foremost among them was the decision by the Eritrean government to halt all exploration by a group of Canadian juniors early in September. So far there has been no explanation as to why Nevsun Resources, Northern Mining Resources, Sanu Resources and Sunridge Gold were told to halt all activity despite visits by the miners' executives to government officials in Eritrea's capital Asmara.

Eritrea is a small, poor country on the banks of the Red Sea between Djibouti and Sudan and with a history of being bullied by Ethiopia from which it gained independence in 1993. The last border skirmishes were in 2000 and it is this history that has ensured minimal exploitation of its mineral riches. Mining could be its salvation and the Bisha project looks like being big on a world scale with comparisons made to the Iberian pyrite belt.

Three explanations for the government’s actions are now going the rounds. One version says that realisation has dawned as to how valuable Bisha and its extensions onto ground held by Northern Mining and Sanu may be. The government only has a 10 per cent holding and wants more. Another is that the US may be considering a pre-emptive move against the government of Sudan. Most of the opposition is apparently holed up in Eritrea and it could be embarrassing if mining companies find themselves in the middle of troop movements. Certainly a very senior US general has recently visited the country.

The third explanation looks more likely. The country needs arms to keep Ethiopia at bay. The Chinese may have suggested that they could supply these arms on advantageous terms ie free, if they were awarded rights to most of the mineral wealth of the country. The implications are very attractive. The ever-present spectre of unemployment would be reduced, the government could generate cash from royalties on projects brought into production, and Ethiopia would be a problem no more. Quite a coup for China and a situation worth watching in 2005.

[roan]

Unfortunately Eritrea could take some time. I still like it but maybe not in the short term. I am holding onto my investments. Not much else to do.

[Ed Monton]

Nothing new here:

Sunridge Gold Corp.: Update on Asmara Project, Eritrea

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 9, 2004) - Sunridge
Gold Corp. (TSX Venture:SGC) ("Sunridge") and its joint-venture partner
Sub-Sahara Resources NL remain under a halt work directive from the
government of Eritrea and there have been no further developments.
Management of both companies are in contact with the Eritrean government
in an effort to resolve this situation as soon as possible.

Sunridge remains well funded and is actively pursuing other gold and
base metals mineral exploration and development opportunities worldwide
in order to diversify and strengthen its property portfolio.

SUNRIDGE GOLD CORP.

Michael Hopley, President and Chief Executive Officer


-30-

FOR FURTHER INFORMATION PLEASE CONTACT:
Sunridge Gold Corp.
Don Halliday
Manager, Investor Relations
[phone] or Toll Free: 1-888-600-2200
[phone] (FAX)
Email: [e-mail]
Website: www.sunridgegold.com
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.

[amarksp]

http://www.resourceinvestor.com/pebble.asp?relid=298&t=10

[roan]

Since then!

[Ed Monton]

I don't know. There doesn't appear to be any info available, not even rumours. Are you talking about the trip he made in mid September or has he been back since then?

[roan]

This board is awfully quiet. Does anyone know what happened to Clarkes visit to Eritrea recently?

[Tackler]

The Eritrean government will like that.

[Ed Monton]

Nevsun Resources Ltd.: Independent Resource Estimate
Confirms Large Tonnage, High-Grade VMS Deposit at
Bisha Project, Eritrea

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 18, 2004) - Nevsun
Resources Ltd. (NSU/TSX) is pleased to announce an independent resource
estimate from the Bisha volcanogenic massive sulphide deposit in
Eritrea. This estimate is based on 310 diamond and 42 reverse
circulation drill holes covering a strike length of 1,200 metres and to
depths varying from surface to 375 metres.

This resource estimate was completed by AMEC, a major international
engineering services company, and complies with National Instrument
43-101 requirements.

The Bisha Main VMS Deposit has three distinct zones, the oxide gold
zone, supergene copper zone and the primary sulphide zones. (See diagram
in this release.) The Indicated resource estimate for the surface oxide
gold zone is 4.984 million tonnes averaging 6.51 g/t Au (using a 0.5 g/t
Au cut-off grade) for a total of 1.04 million ounces of gold. The
Indicated resource for the supergene copper zone totals 7.645 million
tonnes averaging 3.47% Cu (using a 0.5% Cu cut-off grade) for a total of
585 million pounds of copper. The primary sulphide zone is comprised of
a primary zone (described later and in the tables) and a zinc-rich zone
containing an Indicated resource of 8.413 million tonnes grading 9.04%
Zn totaling 1.68 billion pounds of zinc and 1.12% Cu totaling 207.7
million pounds of copper (using a 2.0% Zn cut-off grade).

 
  
 -------------------------------------------------------------------- 
                                  Tonnes     Au      Ag     Cu     Zn 
                      Cut-off     (000's)   g/t     g/t      %      % 
 -------------------------------------------------------------------- 
 Indicated                                                            
 -------------------------------------------------------------------- 
 Oxides             0.5g/t Au    4,984.1   6.51   30.00   0.10   0.08 
 -------------------------------------------------------------------- 
 Supergene Cu         0.5% Cu    7,644.8   0.46   35.56   3.47   0.87 
 -------------------------------------------------------------------- 
 Primary              2.0% Zn    1,711.5   0.74   29.59   0.97   3.07 
 -------------------------------------------------------------------- 
 Primary Zn           2.0% Zn    8,413.3   0.76   58.27   1.12   9.04 
 -------------------------------------------------------------------- 
 Total tonnes                   22,753.7                              
 -------------------------------------------------------------------- 
  
 -------------------------------------------------------------------- 
 Inferred                                                             
 -------------------------------------------------------------------- 
 Oxides             0.5g/t Au      122.0   3.34   18.20   0.12   0.07 
 -------------------------------------------------------------------- 
 Supergene Cu         0.5% Cu      185.6   0.09   30.14   3.26   1.04 
 -------------------------------------------------------------------- 
 Primary              2.0% Zn      392.0   0.75   35.20   1.24   3.03 
 -------------------------------------------------------------------- 
 Primary Zn           2.0% Zn    5,150.9   0.70   59.67   0.84   8.28 
 -------------------------------------------------------------------- 
 Total tonnes                    5,850.0                           
 -------------------------------------------------------------------- 
  
 

...............



In addition there is an inferred resource totaling a further 5.85
million tonnes of oxide, supergene and primary resource as outlined in
the table above.

Details of the Indicated and Inferred resources at various cut-off
grades for the individual zones are listed below.

 
  
 Oxide Zone using gold cut-off grades of  0.5 g/t and 1.0 g/t 
  
 - see below for a detailed description of individual rock types 
 -------------------------------------------------------------------- 
                                                            Contained 
                                                                   Au 
              Cut-off   Tonnes     Au      Ag     Cu     Zn  Millions 
 Indicated     Au g/t   (000's)   g/t     g/t      %      %        Oz 
 -------------------------------------------------------------------- 
 Fe Oxide         0.5  3,653.4   6.65   20.32   0.10   0.08     0.781 
 -------------------------------------------------------------------- 
 Acidified        0.5    709.6   8.35  108.05   0.09   0.03     0.190 
 -------------------------------------------------------------------- 
 Breccia          0.5    621.1   3.62    9.39   0.09   0.07     0.072 
 -------------------------------------------------------------------- 
 Total                 4,984.1                                  1.043 
 -------------------------------------------------------------------- 
 Fe Oxide         1.0  3,469.5   6.97   20.79   0.10   0.08     0.778 
 -------------------------------------------------------------------- 
 Acidified        1.0    683.7   8.63  109.88   0.10   0.03     0.189 
 -------------------------------------------------------------------- 
 Breccia          1.0    519.1   4.19   10.65   0.09   0.07     0.069 
 -------------------------------------------------------------------- 
 Total                 4,672.3                                  1.036 
 -------------------------------------------------------------------- 
  
  
 Supergene Copper Zone using a range of cut-off grades 
  
 -------------------------------------------------------------------- 
                                                            Contained 
                                                                   Cu 
              Cut-off   Tonnes     Cu      Au     Ag     Zn  millions 
                 % Cu   (000's)     %     g/t    g/t      %       lbs 
 -------------------------------------------------------------------- 
 Indicated       0.25  8,105.2   3.30    0.44  34.52   0.86       589 
 -------------------------------------------------------------------- 
 Indicated        0.5  7,644.8   3.47    0.46  35.56   0.87       585 
 -------------------------------------------------------------------- 
 Indicated        1.0  6,453.1   3.97    0.50  38.69   0.91       564 
 -------------------------------------------------------------------- 
  
 

............


Primary Sulphide Zone

The primary sulphides were broken down into two components, a primary
zone and a primary Zn enriched zone.

 
  
 -------------------------------------------------------------------- 
                             Contained       Contained 
          Cut-                      Zn              Cu 
          off   Tonnes    Zn  Millions    Cu  Millions     Au      Ag 
 Zone    Zn %   (000's)    %        lb     %        lb    g/t     g/t 
 -------------------------------------------------------------------- 
 Indicated                                                            
 -------------------------------------------------------------------- 
 Primary  2.0  1,711.5  3.07       115  0.97        37   0.74   29.59 
 Primary 
  Zn      2.0  8,413.3  9.04     1,680  1.12     207.7   0.76   58.27 
 -------------------------------------------------------------------- 
 Inferred                                                             
 -------------------------------------------------------------------- 
 Primary  2.0    392.0  3.03            1.24             0.75   35.20 
 -------------------------------------------------------------------- 
 Primary 
  Zn      2.0  5,150.9  8.28            0.84             0.70   59.67 
 -------------------------------------------------------------------- 
  
 

'''''''''''''''''



Estimation Methodology

This resource model was created using industry standard methodologies
conforming to the requirements set out in National Instrument 43-101.
The blocks grades were estimated within domains based on interpretation
of geological parameters logged in drill holes. A sectional spacing of
25 metres was used for the basic interpretations. The sectional
interpretations were subsequently rationalized in plan. Solid
(wireframe) models were created from these and became the basis for
coding the block model. Grades were estimated using Ordinary Kriging
utilizing two passes and search neighborhoods conforming to the
geological trend. Capping of extreme grades was used to remove metal at
risk as derived from analyses of the assay distributions.

Calibrated in the Indicated blocks of the model, approximately 7.5% of
the Au, 2.5% of the Zn, 13.5% of the Ag and 3.6% of the Cu was removed
by the capping process. Bulk density was estimated by averaging the
measurements from within the modeled mineralization zones. AMEC used the
following bulk density values for the resource estimation.

 
  
 ----------------------------------- 
 Rock type       Bulk Density (g/cm3) 
 ----------------------------------- 
 Breccia                        2.21 
 ----------------------------------- 
 Fe oxide                       3.32 
 ----------------------------------- 
 Acidified                      2.08 
 ----------------------------------- 
 Supergene Cu                   4.15 
 ----------------------------------- 
 Primary Cu                     4.39 
 ----------------------------------- 
 Primary Zn                     4.43 
 ----------------------------------- 
  
 

;;;;;;;;;;;;;;;



Variography and confidence limits analyses for grade estimation were
used in conjunction with confidence in geological modeling and database
integrity to develop resource classification criteria. Indicated
resources were defined by a nominal 25 metre spaced drill sampling grid.
Inferred resources were defined to be the remainder of the material
within 50 metres of drilling. Both the Indicated and Inferred material
were restricted to the geologically interpreted mineralization domains.

The Bisha QA/QC program used to monitor the accuracy of the assay
database was reviewed and verified by AMEC's Qualified Person, Douglas
Reddy, P.Geo. Mr. Reddy made a site visit to the Bisha Property in May
2004. Geological modeling was completed by Nevsun and AMEC. Resource
modeling was carried out using Vulcan 3D Software by Maptek Pty Limited
by Ken Brisebois, P.Eng. also of AMEC and the QP for the resource model.
The geological model was formulated by Nevsun under the supervision of
Bill Nielsen, P.Geo. Nevsun's V.P. of Exploration.

Additional resource potential and future work

Not included in the above resource tabulations are areas of additional
resource potential. A stringer sulphide zone located in the footwall of
the primary sulphide zone contains significant base and precious metal
values. Another wide-spread zone of mineralization consisting of
disseminated copper sulphides in oxidized rocks has also been identified
predominantly to the west of the Bisha Main Deposit. Holes such as B-111
that encountered 39 metres grading 1.08% Cu and B-87 that intersected
31.5 metres assaying 1.44% Cu are examples of this disseminated style of
mineralization.

Nevsun has been under a stop work order from the Government of Eritrea
since early September of this year. The Company looks forward to
returning to work in order to advance the property to a final
feasibility study once permission is given to restart the program.
Initial metallurgical work has been completed, a baseline environmental
study has been completed, hydrological studies have commenced and
geotechnical work has commenced.

When work proceeds, a minor amount of drilling will be completed to
infill near surface resources at the Bisha Main Deposit. This will
involve approximately 1,500 metres of drilling. Some closer spaced
drilling on sections 12.5 metres apart, involving about 4,000 meters of
drilling, will also be completed in upcoming programs to supply a level
of confidence to advance a significant portion of the resources into the
Measured category.

Deeper drilling on the Bisha Main Zone will be completed to determine
the overall extent of this major VMS deposit.

Nevsun also intends to drill off the NW Zone to a level that will allow
the Company to determine the full potential of this deposit. Drilling of
prime exploration targets such as Harena, located 9 km to the southwest
of the Bisha Main Deposit, is also planned.

Drilling large diameter core (PQ) for metallurgical samples and
geotechnical assessment of proposed pit walls are prime objectives of
the next phase of drilling. Both are required to advance the project
towards a feasibility study.

The Bisha Main Deposit remains open to the north and south as well as to
depth. Additional drilling is required to define mineralization in these
areas. At the south end of the deposit the massive sulphides plunge off
steeply but significant widths of mineralization containing appreciable
zinc values are present at depth.

To view the attached images please click on the following links:

http://www2.cdn-news.com/database/fax/2000/1018nsu.jpg

http://www2.cdn-news.com/database/fax/2000/1018nsu1.jpg

Nevsun Resources Ltd. is also developing its gold project in Mali. The
Tabakoto Project in Mali is currently under construction with gold
production scheduled for commencement in mid-2005. Nevsun is well funded
to complete mine construction and further exploration of its projects.

Definitions:

Fe oxide - vuggy, hematite enriched unit. Formerly a massive sulphide
with sulphides altered to oxides

Acidified - highly acidified rock composed largely of silica and clay
minerals, very porous

Breccia - mixture of angular fragments of iron oxide, quartz and country
rock cemented in a finer grained matrix

Forward Looking Statements: The above contains forward looking
statements that are subject to a number of known and unknown risks,
uncertainties and other factors that may cause actual results to differ
materially from those anticipated in our forward looking statements.
Factors that could cause such differences include: changes in world
metal markets, equity markets, costs and supply of materials relevant to
the mining industry, change in government and changes to regulations
affecting the mining industry. Although we believe the expectations
reflected in our forward looking statements are reasonable, results may
vary, and we cannot guarantee future results, levels of activity,
performance or achievements.

NEVSUN RESOURCES LTD.

Dr. John A. Clarke, President & Chief Executive Officer

-30-

FOR FURTHER INFORMATION PLEASE CONTACT:
Nevsun Resources Ltd.
Don Halliday
Manager, Investor Relations
[phone] or Toll Free: 1-888-600-2200
Email: [e-mail]
Website: www.nevsun.com

[Ed Monton]

It looks like there's no free market economy there and the government wants to control everything including mineral exploration.

GQ is a funny one. Too frustrating for me.

[huesos]

Sounds like a great country to do buisness in. For what it's worth it looks like GQ is moving up in spite of every thing, on almost no volume. Fills me with confidence.

[Tackler]

Sounds like a liberal majority govenment move. Boy, Eritrea really is going down the drain...

[Ed Monton]

From BBC news online:

Petrol sales suspended in Eritrea

Eritrea imports all its refined fuel
Eritrea has banned the sale of petrol to the public because of the rising price of oil on world markets.
Information Minister Ali Abdu Ahmed said diesel would remain available, but petrol had to be conserved for essential use.

Earlier this month petrol went up by 40% and diesel 25% after a month of fuel rationing.

Shortages are widespread as the country struggles to pay off debts incurred during its border war with Ethiopia.

Superfluous consumption

"Our priority is to provide petrol to public services and development programmes in the best interest of the nation," Mr Ahmed told AFP news agency.

The suspension of the sale of petrol should not provoke anxiety


"We do not want superfluous consumption. We cannot let the people with money consume all the petrol," he said.

Eritrea imports all its refined fuel products and is short of foreign exchange after buying large quantities of modern aircraft to use in the war, which ended four years ago.

The border between Ethiopia and Eritrea has been closed ever since, depriving Eritrea of access to its natural markets.

Ethiopia used to be Eritrea's largest export market and the fees charged for the use of its Red Sea ports used to bring millions of dollars into the nation's coffers.

The minister did not indicate when the suspension would be lifted.

[Tackler]

Keep sliding...

[roan]

It is amazing how quiet the Eritrea Board has become. No one got any info!!!!!

[Tackler]

Plaese do future tests here.

[roan]

test

[Ed Monton]

Eritrea ban jangles mining political risk nerves

Tue Sep 21, 2004 02:46 PM ET

By Nicole Mordant

VANCOUVER, British Columbia , Sept 21 (Reuters) - Political risk is again high on mining investors' minds after Eritrea slapped a sudden, unexplained ban on foreign miners, unsettling the shares of small companies invested in mineral projects in remote places.

"In the small institutional community in Canada and the United States, where resource exploration finance is a relatively new activity, there has been a knee-jerk reaction out of Africa as a result of Eritrea," said Rick Rule, senior analyst at Global Resource Investments, a California-based brokerage firm focusing on natural resource investments.

Shares in Canadian explorers Nevsun Resources Ltd. (NSU.TO: Quote, Profile, Research) , Sanu Resources Ltd. (SNU.V: Quote, Profile, Research) and Sunridge Gold Corp. (SGC.V: Quote, Profile, Research) , which were looking for gold in the politically volatile East African country, have lost half or more of their value since the government edict on Sept. 2.

Despite hastily arranged talks with Eritrea's mines minister in the past two weeks, the firms remain in the dark on reasons for the work ban and when, or if, it might be lifted.

"I'm sure there is a concern, people saying 'Oh Africa, we don't want to touch that'," said Tony Hayes, vice president of corporate development at Etruscan Resources Ltd. (EET.TO: Quote, Profile, Research) , whose stock is down 12 percent since the start of the month.

Etruscan has gold projects in Burkina Faso, Ivory Coast, Niger, Mali and South Africa.

"If we are being dragged down because of Eritrea then this is a tremendous buying opportunity...As Baron Rothschild said, you should be buying when blood is running in the streets," Hayes said.

Even outside Africa, some explorers have been been tarred with the same brush. A small firm looking for gold in Latin America told Reuters of a fund manager demanding reassurance in the region's safety after being burnt in Eritrea.

Analysts said North American investors are generally more skittish than their London counterparts when it comes to investing in riskier enclaves, where explorers are increasingly being pushed to as traditionally "safe" regions get mined out.

But Greg Bowes, corporate vice president at Orezone Resources (OZN.TO: Quote, Profile, Research) , said the West African emerging gold producer had found that investors were becoming better informed because of the Internet and were not rushing for the exits because of another African country's actions.

"We have had surprisingly few phone calls after the Nevsun story...It's a very unfortunate situation but I don't know that a lot has changed in terms of other countries because investors look at them on a case-by-case basis," he said.

Orezone's stock is off 4 percent this month.

Global Resources' Rule said it was wrong to think that only less developed countries were politically risky for investors.

"If you have a deposit stolen from you in British Columbia and California by 'due process'...there is no difference," he said, referring to rigorous environmental standards in both regions that have killed off mining projects.

[Tackler]

Kind of fitting you would make a HIND ^^ SIGHT statement on that post #. Good grub bub.

[Ed Monton]

No. The easy money was already made on the $2.00 purchases. Too bad I had no huevos that day.

[Tackler]

I am telling you the market liked the release, that is why I am not buying.

If your so sure about someone knowing something then you should buy some stock.

Roll them dice...

[Ed Monton]

The market knows something but its not in that release.