Sheba Exploration (UK) plc

June 01, 2009 04:44 ET

Operational Report 33 - Gold Sampling Results From Ethiopia

                                         Operational Report 33
                                  Gold Sampling Results From Ethiopia


The  directors of Sheba Exploration (UK) Plc, the Ethiopian gold and base metals explorer, are pleased
to announce encouraging gold assay results from two of the Company's projects in northern Ethiopia.

(1)  At  Shehagne EEL, high grades of gold (up to 15 g/t over 0.9 metres) were encountered  in  quartz
veins and wallrock associated with a 130 hectare gold soil anomaly.

(2) At Una Deriam EPL, soil sampling has defined a new gold anomaly. High gold values (with several in
excess of 1000 ppb) were encountered over an area of 54 hectares.

Shehagne EEL

Channel sampling was carried out at Hadush Adi, at the south end of the 2.8 km long Shehagne EEL  gold
soil  anomaly. Continuous chip samples were taken from fresh bedrock exposed in stream beds, in  order
to precisely locate the source and style of gold mineralisation. The sampling exercise showed:

(1)  gold  mineralization  occurs in numerous quartz vein swarms cutting across  the  felsic  volcanic
bedrock which underlies the soil anomaly.

(2)  Gold  values  extend into the bedrock around the veins, associated with a brown alteration  zone.
Typically, alteration zones are about 6 x width of quartz veins.

(3)  using a cut-off of 0.1 g/t the average gold intersection from 33 channel samples was 2.2 g/t over
0.6 metres. The best gold intersection was 15.1 g/t over 0.9 metres (Table 1).

(4)  Quartz vein swarms are commonly 10-20m across strike and follow steeply dipping brittle fractures
which are dominant along one structural direction.

Table 1: gold in bedrock from Shehagne EEL (c/o = 0.1 g/t)

Sample no. intercept(m) Gold(g/t)   Rock-type

09041305SB     0.44      0.18     siliceous shale
09041307SB     0.38      0.58     cherty quartzite
09041401SB     0.86     15.11     siliceous shale
09041407SB     0.74      0.31     siliceous shale
09041409SB     0.50      1.10     siliceous shale
09041411SB     0.30      1.84     andesite
09041414SB     0.15      0.22     cherty quartzite
09041418SB     0.24      0.69     quartzite
09041420SB     0.16     13.64     siliceous shale
09041422SB     0.20      0.41     cherty quartzite
09042502SB     1.01      0.24     siliceous shale
09042503SB     1.00      0.46     siliceous shale
09042504SB     0.99      0.47     siliceous shale
09042505SB     0.46     10.78     siliceous shale
09042509SB     1.00      0.78     siliceous shale
09042512SB     1.01      3.28     siliceous shale
09042514SB     0.31      0.10     siliceous shale
09042601SB     0.71      0.83     siliceous shale
09042602SB     0.60      0.60     siliceous shale
09042603SB     0.54      0.56     siliceous shale
09042605SB     0.78      6.93     siliceous shale
09042608SB     0.97      4.26     siliceous shale
09042610SB     0.44      0.94     siliceous shale
09042612SB     0.31      0.67     siliceous shale
09042701SF     0.48      0.15     rhyolite
09042702SF     0.38      0.53     rhyolite
09042704SF     0.45      0.93     rhyolite
09042705SF     2.00      0.15     rhyolite
09042706SF     0.20      0.13     andesite
09042707SF     0.25      3.37     andesite
09042708SF     0.93      2.04     rhyolite
09042711SB     0.35      0.74     rhyolite
09042712SB     0.36      0.35     siliceous shale

Una Deriam EPL

Soil  assays  from  Una Deriam EPL show a number of strong gold anomalies (Table  2).  The  best  soil
anomaly  was  encountered at Punto Rico, which was first discovered in 1903 by an Italian  prospecting
syndicate  (S.I.O.M.). Recent mapping in the area by Sheba Exploration has revealed  three  en-echelon
soil anomalies extending over an area of 900m by 600m (54 hectares). The anomalies are associated with
old  prospecting  adits, several box-cuts and present-day superficial gold workings.  Abundant  quartz
veins occur in the area and some of these contain gold.

Satellite  imagery covering the Werii Goldfield was processed by consulting geologist Iain Henrys  and
reveals the extent of hydrothermal alteration from Ndaba locality in the north, to Punto Rico  in  the
south,  a distance of six kilometres. Throughout this area primary gold diggings have been encountered
and  several of these were sampled and drilled at the northern end of the goldfield in previous years,
showing  widespread gold in association with quartz stockwork in phyllite (Operational  Report  23,  3
July 2007).

Table 2: gold in soil from Una Deriam EPL (cut-off:100ppb)

Sample no. grid ref. gold assay (ppb)  Bedrock type

UE7      6670E/500N      140          -
UE9      6810E/480N      240          -
UE10     6890E/500N      330          -
UE11     7010E/500N      230          -
UF22     6785E/692N      370          slatey shale
UF27     7092E/895N      120          rhyolite
UF31     7225E/614N      140          felsic schist
UF32     7115E/594N      180          felsic phyllite
UF34     6883E/626N      470          felsic tuff
UF35     6777E/609N      140          felsic tuff
UF37     6879E/409N      200          andesite
UF39     7073E/417N      110          dacite tuff
UF41     7282E/403N      670          felsic schist
UF44     7100E/496N      300          phyllite
UF45     7299E/306N     7400          phyllite
UF46     7201E/305N      200          felsic volcanic
UF47     7104E/314N      290          phyllite
UF48     6989E/302N      120          tuff
UF51     7015E/199N      220          greywacke
UF53     7222E/196N      860          -
UF54     7302E/198N     1560          felsic volcanic
UF58     7204E/090N      750          slate
UB5      7222E/002N      350          -

The Directors accept responsibility for this announcement.

Sheba Exploration (UK) Plc
Richard Brooker
Tel: 00 353 87699 8401

Corporate Advisor
St Helen's Capital Plc
Duncan Vasey
Tel: 020 7628 5582

Contact Information

  • Sheba Exploration (UK) plc