Local Politics

Ethiopia: Business – Akobo Minerals Receives More Assay Result in Segele Mine

Addis Abeba — Akobo Minerals today announced that it has released a new set of infill drilling assays from its Segele mine development project, the mining company said in a dispatch sent to Addis Standard. “The results are intended to allow for an upgrade of the resource classifications in the ongoing resource estimate.” The Scandinavian-based Ethiopian gold exploration and boutique mining company is currently engaged in ongoing exploration and boutique development in the Gambella region and Dima Woreda, in southwest Ethiopia.

According to the dispatch, the latest drill hole database is now being analyzed by Akobo Minerals’ geologists and resource estimation experts at SRK in Perth, Australia. From the results seen so far Akobo Minerals expects that parts of the previous inferred mineral resource will be upgraded to indicated resources. Indicated resources have a much higher confidence and such an upgrade would be a strong validation of the company’s revenue and cash flow potential. However, the results do not lead Akobo Minerals to expect an increase in the gold endowment of the new resource estimate as previously indicated. The infill drilling results show a higher degree of lower grade ore body than previously estimated in the first Segele minerals resource estimate. Total tonnage is expected to increase, but the related increase in gold resources will be offset by a lower average grade.

The updated resource is being built on a significantly expanded knowledge base and the resulting resource estimation will bring the company closer to its stated goal of becoming an exploration company supported by small scale mining. The increased understanding of the Segele geology is a key asset to Akobo Minerals as this knowledge is being put in to use in the continued exploration around Segele.