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 August 12, 2010

Bisha Mine Reaches 70% Completion & Q4 Commissioning On Track

Bisha Mining Share Company is pleased to provide a brief update on the continuing progress of the Bisha project.

The Bisha Project is positioned to be Eritrea’s first modern day mine, with production anticipated to yield 1.06M oz gold, 734M lb copper, 1B lb zinc and 9.4M oz silver.  Gold will be produced at an operating cost of less than $250/oz, with copper operating costs ranging from $0.54-$0.67/lb, and zinc operating costs at $0.50/lb.  Bisha benefits from the continued support of the Eritrean government. 

Mine construction continues as scheduled and as at the date of this release the Bisha project is now over 70% complete. 

During the course of Q2 2010, the following was achieved:

  • Completion of the majority of structural steel, plate work and mechanical elements of the project;
  • Installation of the Ball and SAG mills;
  • Installation of the liner in the tailings management facility commenced; and
  • Pre-strip mining continued per plan.

Cost expenditures over the quarter were incurred as planned and the project remains on track to come within the targeted $260 million total cost.  As at June 30, 2010, approximately $168 million had been spent and a further $32 million had been ordered or arranged.

The Company is working effectively towards the following targets for remainder of 2010:

Q3

  • Completion of plant electrical and piping installation; and
  • Installation of the electrical power plant.

 

Q4

  • Commencement of ore extraction and stockpiling;
  • Completion of the tailings management facility;
  • Plant commissioning; and
  • First gold pour.

 

Pictures of the construction progress are updated regularly and can be found on the Company web site – http://www.bishamining.com/index.php/gallery.

 

 

Forward Looking Statements: The above contains forward-looking statements concerning cash position, construction progress, reserves, mine planning and project economics.  Forward-looking statements are frequently, but not always, identified by words such as “expects,” “anticipates,” “believes,” “intends,” “estimates,” “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
Chairman