Highly prospective geology (Arabian-Nubian shield) with proven economic mining deposits
•Significant operating mines in Eritrea include:
•Bisha: VMS gold, copper and zinc mine, 55% owned by Zijin Mining, following US$1.4 billion acquisition of NevsunResources in 2019; (2016 Measured & Indicated Resources of 20.6 Mt @ 0.98% Cu, 5.74% Zn, 0.7 g/t Au, 45 g/t Ag)
•Koka/Zara: orogenic gold mine, 60% owned by China SFECO Group; (Probable Reserve 4.6 Mt @ 5.1 g/t Au)
•Supportive government participation, with Eritrean law providing that:
•governmentmay acquire (without cost to itself), a participation interest of up to 10% of any mining investment; and
•governmentmay also purchase an additional 30% equity participation (total of 40%, including the 10% free-carry) via ENAMCO (the state mining company)
•the price paid for the additional 30% portion is settled by negotiation, based on valuations by independent experts, with ENAMCO fully contributing for its share of capital costs.
•Stable taxation and mining regulation which allows for expatriation of funds
•Ideal location for concentrate exports to international markets
•Mining sector accounts for approximately 20% of the economy
•One of the world’s largest solid salt, near-surface high-grade sulphateof potash reserves (colluli), in an emerging potash province, is on track for production