BMSC Increases Exploration License Area Nearly Twenty-Fold
July 26, 2016
Bisha Mining Share Company (the “Company” or “BMSC”) announces that it has increased its total land package of exploration licenses to 814 square kilometers, up 1,891% from 41 square kilometers in Eritrea’s Bisha Volcanogenic Massive Sulfide (VMS) District.
The increased exploration license area consists of two highly prospective land packages (see map attached):
- 184 square kilometers surrounding the existing BMSC mining licenses (“Tabakin Exploration License”), providing continuous coverage for 15 kilometers over the Bisha mine favourable stratigraphy; and
- 630 square kilometers in the vicinity of the Bisha mine over highly prospective geology, combining new and previously relinquished property and the current Mogoraib River exploration license that hosts the Hambok, Asheli and Aderat deposits (“New Mogoraib Exploration License”).
“The Bisha VMS District remains vastly under-explored. Expanding our exploration land package has been a high priority that required a negotiation with the Ministry of Energy and Mines for extended and improved license terms. BMSC now has ownership of all of the exploration land in the Bisha district”, stated Cliff Davis, Chairman of BMSC. “With greater access to additional high-priority targets and increased time to evaluate results, we have added another key element to our strategy to deliver value to the State of Eritrea and BMSC’s shareholders through exploration in this prolific mining district. We are proud leaders in the Eritrean mining industry and believe BMSC’s exploration efforts will deliver mining for decades to come in the Bisha District.”
The Tabakin Exploration License includes the highly prospective area between the Bisha and Harena mining licenses. Given the prospectivity and proximity to the existing process plant and the Bisha Mine, BMSC will be permitted to hold the land for ten years before any partial relinquishments. A number of untested geophysical and geochemical anomalies are present on this property and evaluation will begin immediately.
The New Mogoraib Exploration License provides a fresh start on the relinquishment terms for the entire 630 square kilometer land package and will be subject to the existing relinquishment regime for exploration licenses (three years of no relinquishment followed by two one-year renewals with a 25% annual area reduction beginning after year three). This additional land package will ensure BMSC has sufficient time to fully test the exploration potential using the successful exploration techniques of airborne geophysical surveys followed by systematic ground and borehole geophysics which have led to the exploration success at Harena and Asheli. BMSC management have already identified one specific high-priority target where drilling will begin in H2 2016.
The additional investment by BMSC’s shareholders in this land package is another indication of the belief in the Bisha district and the strength of the partnership between the two key shareholders (Nevsun Resources (Eritrea) Ltd. and the Eritrean National Mining Corporation).
Forward Looking Statements: The above contains statements regarding copper production, mine operations, and process recoveries. Forward-looking statements are frequently, but not always, identified by words such as “expects,” “anticipates,” “believes,” “intends,” “estimated,” “potential,” “possible” and similar expressions, or statements that events, conditions or results “will,” “may,” “could” or “should” occur or be achieved. Forward-looking statements are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors. The Company’s forward-looking statements are based on the beliefs, expectations and opinions of management on the date the statements are made and the Company assumes no obligation to update such forward-looking statements in the future.
Bisha Mining Share Company
“Cliff T. Davis”
Cliff T. Davis
Revised Exploration Licenses held by Bisha Mining Share Company