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October 10, 2012

Bisha Closes Acquisition of Mogoraib Exploration License Near Bisha Mine

 

HIGHLIGHTS

  • Acquisition agreement announced August 1, 2012 now closed
  • Exploration license 97.4 square kilometers
  • Includes the historic copper-zinc resources at the Hambok deposit
  • Hambok has open pit potential 16 km southwest of Bisha processing plant

 

Bisha Mining Share Company (“Bisha” or “BMSC”) today is pleased to announce that it has closed its previously announced agreement to acquire the Mogoraib River exploration license in Eritrea.  Pursuant to the Agreement announced August 1, 2012, BMSC has paid Sanu Resources, a subsidiary of NGEx Resources Inc. US$5 million.

BMSC Chairman Cliff Davis commented: “Bisha is commencing a strategic review of regional exploration potential that as a minimum will include further work on the historic resources at Hambok.  In addition to the Mogoraib license, Bisha also plans to apply for further exploration area contiguous to the Bisha Mine to support a regional generative exploration program.  We believe the Bisha region has excellent potential for the discovery of additional VMS deposits.”

The Mogoraib exploration license is 97.4 square kilometers in area and includes the Hambok copper-zinc deposit.  The Hambok deposit is located 16 km southwest of the Bisha Mine (Figure 1). BMSC believes that the Hambok deposit is potential additional feed for the Bisha plant.  If additional exploration is successful and reserves are identified, then Bisha may consider increasing plant capacity when it adds a zinc flotation plant to the copper plant in 2015 or 2016.

 A historical resource estimate for Hambok (see Table 1) was filed in a NI 43-101 technical report on March 27, 2009 by Sanu Resources Ltd.  A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves and BMSC is not treating the historical estimate as current mineral resources or mineral reserves.

 

Table 1: Historic Hambok Resource Estimate within the Mineralized Shell
[Source: NI 43-101 Technical Report, Effective January 23, 2009 (1)]

 

Indicated

Cut-off Zn % Grade > Cut-off

Tonnes > Cut-off

Cu (%)

Zn(%)

Au (g/t)

Ag (g/t)

0.75

10,700,000

0.98

2.25

0.20

6.84

2.00

5,100,000

1.12

3.24

0.21

7.81

 

Inferred

Cut-off Zn % Grade > Cut-off

Tonnes > Cut-off

Cu (%)

Zn(%)

Au (g/t)

Ag (g/t)

0.75

17,000,000

0.85

1.74

0.19

5.89

2.00

5,100,000

0.96

2.81

0.19

6.20

 

1. The historic mineral resources estimate set out in the table above have been extracted from NI 43-101 technical report dated January 23, 2009, by Messrs. G. H. Giroux, P Eng. and C. Tucker Barrie, P.Geo., who are qualified persons under NI 43-101. Assumptions in the NI 43-101 report included: (i) metals prices – Cu at $1.30/lb; Zn at $0.79/lb; Au at $675/oz; Ag at $10/oz; (ii) recoveries – Cu at 85%; Zn at 84%; Au at 36%; Ag at 29%, however no metallurgical test work had been performed.

Figure 1 – Map of Mogoraib License and Bisha Area

Map of licensed areas


Forward Looking Statements: The above contains forward-looking statements regarding potential exploration results, expansion of the Bisha mill, historical estimated grade and estimated mineral resources and potential for mining such economically unproven resources.  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
Chairman