Andiamo Exploration Limited was incorporated in 2008 to undertake exploration for and development of volcanogenic massive sulphide and orogenic gold deposits in Eritrea.
Eritrea lies within the Arabian-Nubian Shield, which hosts many important Volcanogenic Massive Sulphide (VMS) and orogenic gold deposits. VMS deposits in the Shield include Bisha (Eritrea), Hassai (Sudan), Jabal Sayid (Saudi Arabia) and Hamama (Egypt). Gold deposits include Sukari (Egypt) and Zara (Eritrea).
Since 2010, Andiamo has systematically explored and identified 40 targets in its large Haykota licence, which lies along strike and 50km south of Bisha Mine. In 2016, the company was granted a 90km2 extension, adding a further 30 targets. A prefeasibility study is well advanced on a small but high-grade gold-enriched oxide cap above a VMS deposit at Yacob Dewar.
Vulcanogenic Massive Sulphide (VMS) deposits were deposited on the sea floor by volcanic hot springs and occur as “strings of pearls” along favourable horizons. A string of VMS deposits in Eritrea extends over 60km through Andiamo’s Haykota licence. The Company has identified many VMS targets, notably the Yacob Dewar deposit. Not all the targets have been yet fully tested, not least those in the Mew area of the new southern licence extension. The licence also contains orogenic vein-type gold mineralisation, which is the source of several areas of alluvial artisanal workings.
The Yacob Dewar VMS deposit has a high-grade oxide gold cap, with a JORC-compliant Indicated Mineral Resource of 85,000oz of gold at 2.7g/t. A feasibility study is underway, and first results indicate that the operation will be highly profitable.