SANU RESOURCES LTD.: THIRD QUARTER RESULTS AND OPERATIONAL UPDATE
Over the past four months Sanu has been conducting field operations in Eritrea to more closely define drill targets on its licences. The company's five exploration licences and four prospecting licences cover approximately 4,900 square kilometres and include shear-hosted gold prospects and volcanic massive sulphide prospects.
Southern licences
Within the Fanco and Guluj licences, the company has identified five prospective areas for shear-hosted gold mineralization, which include the Adi Kelbay, Milhoy, Demerayeye, Wegeretai and Asuna prospects. These prospects have been identified through regional and detailed prospecting work including stream sampling (BLEG), soil sampling, rock chip sampling and mapping. Currently, infill soil geochemistry, trenching and rock chip sampling is being completed on these five prospects to prepare them for drilling. At Asuna, a zone 2.5 kilometres long has been identified by soil geochemistry along the contact of a granitic intrusive where grab samples on quartz veins and wall rocks have returned up to 26.5 grams per tonne, 6.5 g/t, and six g/t in gold. Soil sampling and wide-spaced trenching is in progress to fully determine the extent and character of the mineralization.
The Adi Kelbay, Milhoy, Demerayeye prospects occur within a zone of shearing and carbonate alteration in mafic and felsic volcanics that extends for more than eight kilometres. Individual prospects within this eight-kilometre-trend have been defined by soil geochemistry (200-metre line spacing), rock chip sampling and local artisanal workings and include two anomalies; one 800 metres by 100 metres and the other 1,200 metres by 100 metres. At Demerayeye, in the northern part of the trend, a 2.5-kilometre-long zone has four anomalies each over 500 metres by 80 metres containing quartz veinlet stockworks in sheared felsic volcanics. Grab rock chip samples from veins in the Demerayeye trend returned 28.8, 18.4, 12.5, 6.7, 5.4, 2.8, 2.4, 1.4, 1.2, 0.9, 0.6, 0.4 and 0.3 g/t Au.
The Wegeretai prospect consists of a quartz vein one metre to two metres wide and 700 metres long that has been worked by local miners to a depth of 10 metres to 20 metres. Vein quartz and waste dump grab samples returned 30.8, 7.8, 5.5, 0.6 and 0.16 g/t Au. The vein and extensive waste dumps are being channel sampled ahead of drilling.
Central licences
The central licences of Kerkebet and Mogoraib contain the Bisha North and Mai Melih gossans. The work completed in these areas includes mapping, soil and rock chip sampling, and trenching. In February a 1,700-line-kilometre, airborne, Tempest electromagnetic and magnetic survey was completed by Fugro Airborne Surveys over three areas in the Kerkebet and Mogoraib licences. Preliminary results have identified five anomalies including Bisha North, Mai Melih and two significant anomalies under alluvial cover.
The Bisha North gossan, which is on strike with Nevsun Resources Ltd. Bisha Northwest mineralization, consists of 200 metres of discontinuous gossan outcrops in felsic schists. The gossans are coincident with an airborne Geotem electromagnetic anomaly. Gossan outcrop is anomalous in zinc, lead and copper but low in gold.
At Mai Melih, 12 kilometres to the west-southwest, the company has identified a gossanous horizon over 1.3 kilometres long in outcrop and nine trenches. This gossan horizon is anomalous in Pb, Zn and Cu and has returned values up to 2.4 per cent Pb but most values in outcrop and trenches are anomalous in Zn and Pb at the hundreds of parts per million level. The Mai Melih gossan horizon appears to be coincident with an airborne Tempest EM anomaly.
Gravity surveys, to detect the presence of possible high-density massive sulphides at depth, are being completed over Bisha North and Mai Melih by MWH Geo-Surveys. Preliminary results have identified an 800-metre-by-800-metre gravity anomaly at Mai Melih and a 300-metre-by-300-metre gravity anomaly at Bisha North. The company will also complete additional gravity surveys over the two covered EM anomalies further north on the Bisha VMS horizon trend.
Northern licences
The company continues to conduct regional exploration. Currently two field teams are working in the Hurum licence as well as parts of the Dieba Satta and Kerkebet licences. The fieldwork includes regional and prospect mapping, and soil, stream and rock chip sampling.
Third quarter results
The company has released its unaudited interim financial statements for the nine months ended March 31, 2004. The company reported a loss for the third quarter of $548,643 (loss per share four cents) compared with a loss of $2,611 (loss per share nil) for the same period in 2002. As at March 31, 2004, the company had working capital of $1,221,366. The full text of the unaudited financial statements is included with the company's quarterly report which may be found in Stockwatch SEDAR files on May 7, 2004.
Corporate activities
The company is also pleased to announce that David Miles has been appointed chief financial officer of the company. The board of directors wishes to thank Peter Miller for his contribution to the company.
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.
A preliminary Web site has been established and can be viewed at http://www.sanuresources.com. The site will be significantly upgraded over the next month.
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