Sheba Exploration (UK) plc
LSE : SHE

October 20, 2009 06:55 ET

Operational Report 34 Shehagne EEL gold project JV operations underway

                                                                                      GB00B02WHQ80/GBP/PLUS-exn
                                                                                                    20/10//2009
                                                       
                                          Sheba Exploration (UK) Plc

                   Operational Report 34: Shehagne EEL gold project - JV operations underway

The  Directors  of  Sheba  Exploration (UK) Plc ("Sheba" or the "Company") are pleased  to  announce  continued
exploration at the Shehagne Exclusive Exploration Licence in Tigray State, Ethiopia, for the fourth consecutive
year,  by  the new operator, Stratex International Plc, following an earn-in option agreement with Sheba  dated
28th  of  August  2009.  Stratex  have the option to earn up to 60% of the licence  title  for  an  exploration
expenditure  of  GBP 350,000 over a period of 21 months from licence renewal.  The  licence,  which
continues  to be held by Sheba, was renewed by the Federal Government on 4th September, 2009 and JV  operations
commenced on 9th September with the deployment of Stratex geologists to the area.

Phase  one  of the operation, an orientation and verification programme, which included a multi-element  stream
sediment  survey  and  channel  rock  sampling, was completed on the 9th of October.  Approximately  75  stream
sediment samples and in excess of 90 rock samples were collected, including a number of channel samples from  a
newly discovered set of quartz veins in the vicinity of the Tsemetti gold anomaly, which occurs in the south of
the licence area. The samples are currently on route to an external laboratory for analysis.

The  Tsemetti gold anomaly was discovered by Sheba during an earlier stream sediment survey in 2006 and defined
by  soil  sampling in 2007-2008 over an area of 130 hectares, along a strike length of almost three kilometres.
Recent  work  by  Sheba  focused on trenching, RAB drilling and channel sampling to  establish  the  geological
controls of gold mineralization and the distribution of gold in rock (these results
are summarized in Figure 1 on the following link:
http://www.plusmarketsgroup.com/reports.shtml?ISIN=GB00B02WHQ80/GBX/PLUS-exn)


The  Shehagne  EEL is one of the first of a number of new gold and base metal discoveries made in  Ethiopia  in
recent  years. Others announced recently include Terer gold-rich Volcanogenic Massive Sulphide deposit  (Makeda
Mining  Plc, North Ethiopia), Tulu Kapi syenite-hosted gold deposit (Golden Prospect Mining Company  Ltd,  West
Ethiopia)  and the Metekel shear-zone hosted gold trend (Midroc Gold Plc, North-west Ethiopia),  all  of  which
reported gold or base metal anomalies trending for several kilometres.

Sheba  aims to repeat its recent success at Shehagne EEL with further definition and testing of the Una  Deriam
EPL  shear-zone hosted gold anomaly, which was reported on earlier this year (Operational Report 32,  dated  17
March, 2009 and Operational Report 33, dated 1 June, 2009).

The Directors of Sheba Exploration are responsible for the contents of this announcement.

Enquiries:

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

St Helens Capital Partners LLP                           Tel: 020 7368 6959
Mark Anwyl or Duncan Vasey

Contact Information

  • Sheba Exploration (UK) plc