Sheba Exploration (UK) plc
LSE : SHE

November 24, 2009 06:18 ET

Operational Report 35: gold sample results from Shehagne

                                                                                   GB00B02WHQ80/GBP/PLUS-exn
                                                                                                 24/11//2009

                                                      
                                         Sheba Exploration (UK) Plc
                 Operational Report 35: gold sample results from Shehagne, northern Ethiopia
                                                      
Sheba  Exploration  (UK)  Plc, the Plus-quoted gold and base metals explorer  in  Ethiopia,  is  pleased  to
announce  further gold intersections from channel samples taken by Stratex International Plc at its Shehagne
Exclusive Exploration Licence in northern Ethiopia.

New channel samples of weathered bedrock taken by Stratex were reported as follows:

-   51 metres grading 0.88 g/t Au (inclusive 17 metres grading 2.02 g/t Au)
-   135 metres grading 0.31 g/t Au (inclusive 54 metres grading 0.80 g/t Au)

Previously, Sheba reported wide channel intercepts from an area 100 - 500m south of the above intersections,
of which the following were significant:

-   20m at 3.15 g/t Au (inclusive 14m at 4.30 g/t Au)
-   18m at 1.22 g/t Au (inclusive 12m at 1.73 g/t Au)
-   18m at 0.33 g/t Au (inclusive 8m at 2.06  g/t Au)
-   12m at 0.62 g/t Au (inclusive 4m at 1.44 g/t Au)

Vertical drill intersections were previously reported by Sheba from the area of channel sampling carried out
by Stratex, as follows:

-   5m at 1.7 g/t Au
-   4m at 1.6 g/t Au
-   3m at 2.6 g/t Au
    
In  addition,  results  of a stream sediment survey by Stratex appears to support the previous  findings  of
Sheba,  with anomalous gold values reported from the Tsemetti and Hadush Adi prospects in the south and  the
Maichew prospect area some 3 to 4 km to the west and north-west.

An excerpt from the Stratex announcement today is as follows:

"The  first  channel  of  what is intended to be a detailed sampling programme  exposed  veining  and  gold-
associated  sericitic alteration over a width of 284 m, gold values ranging from 23  ppb  up  to  5.68  g/t.
Multiple  quartz veins, 5-80 mm in width, were recorded, with better gold grades being directly  related  to
the  abundance of the veins, although low-grade but significant gold values were evident throughout the full
width of the zone.

Two  zones characterized by higher gold contents were identified, separated by a 32- metre-wide zone  of  no
exposure:

0  - 51 metres: 51 metres grading 0.88 g/t Au, including a zone of 17 m grading 2.02 g/t Au

51 - 83 metres: no exposure

83 - 218 metres: 135 metres grading 0.31 g/t Au, including a zone of 54 metres grading 0.80 g/t Au.

The  mineralization is anticipated to be continuous over the total thickness of 218 metres and trenching  is
now planned to expose the bedrock in the area where there is no exposure.

No  cut off value was applied. The channel-chip samples comprise interval lengths of  between 1 metre  to  5
metres.

An  additional 4 channels are planned over the Tsemmetti anomaly, over an approximate strike length  of  800
metres,  and  a  width  of  300  metres. Early reconnaissance mapping and rock sampling  has  confirmed  the
continuation  of  the mineralization throughout the main Tsemmetti anomaly, with a similar  width  and  vein
density to that of the reported channel.

A  prospect-wide  stream sediment programme has also been completed using the -200 mesh size  fraction.  The
maximum identified anomaly was 1,800 ppb Au from a zone south of the main Tsemmetti anomaly. Other anomalies
exceeding  120 ppb Au were identified approximately 1,000 metres to the south of Tsemetti and between  3,000
metres  and 4,000 metres to the west and north-west. All require detailed investigation and indicate a  much
wider potential beyond the current boundaries of the Tsemmetti zone".

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: +44 020 7368 6959
Mark Anwyl or Duncan Vasey

Contact Information

  • Sheba Exploration (UK) plc