Identifier
Created
Classification
Origin
08ASMARA317
2008-06-13 06:40:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Asmara
how-toVZCZCXRO8327 RR RUEHROV DE RUEHAE #0317 1650640 ZNR UUUUU ZZH R 130640Z JUN 08 FM AMEMBASSY ASMARA TO RUEHC/SECSTATE WASHDC 9738 INFO RUCNIAD/IGAD COLLECTIVE RUEHBJ/AMEMBASSY BEIJING 0039 RUEHOT/AMEMBASSY OTTAWA 0195 RUEHVC/AMCONSUL VANCOUVER 0012 RUEAIIA/CIA WASHDC RHEHNSC/NSC WASHDC
UNCLAS ASMARA 000317
SIPDIS
SENSITIVE
LONDON AND PARIS FOR AFRICA WATCHERS
DEPT FOR AF/E
E.O. 12958: N/A
TAGS: ECON EMIN ER
SUBJECT: SUNRIDGE STRIKES GOLD NEAR ASMARA
Ref: 07 Asmara 907
UNCLAS ASMARA 000317
SIPDIS
SENSITIVE
LONDON AND PARIS FOR AFRICA WATCHERS
DEPT FOR AF/E
E.O. 12958: N/A
TAGS: ECON EMIN ER
SUBJECT: SUNRIDGE STRIKES GOLD NEAR ASMARA
Ref: 07 Asmara 907
1. (SBU) Vancouver-based Sunridge Gold Corporation of Eritrea chief
engineer David Doud (protect) told Conoff of a large discovery of
gold, silver, copper, and zinc at Adi Nefas, 4 miles northwest of
Asmara. Doud conservatively estimated gross revenues from the find
at around $1 billion, less capital expenses and extraction costs.
Three more deposits have been found near Asmara, as well as 6 to 10
promising sites waiting to be explored. A gold-only strike of
approximately 189,000 ounces also lies between Adi Nefas and
Asmara.
2. (SBU) Doud described another find at Emba Derho 7 miles
northwest of Asmara as "bigger than Bisha (reftel)," a site he
originally helped Nevsun discover. The deposit is thought to
contain 400,000 ounces of gold, 1.7 billion pounds of Zinc, and 735
million pounds of copper. The Debarwa site 30 miles south of Asmara
contains mostly copper, but is also thought to include gold. All
minerals extracted (other than gold) will be sent by rail, rather
than truck, from Asmara to the port of Massawa for shipment. Doud
said Sunridge will likely be asked by the Government of the State of
Eritrea (GSE) to assist in financing repair the railroad, which is
in drastic need of improvement.
3. (SBU) Doud said Sunridge will begin Eritrean extraction
operations at the Debarwa site, due to the relative ease of mining
and processing; extraction will begin in about two years. Sunridge
will use the cash flow from copper mining to help finance extraction
operations at the other three sites, as well as continued
exploration. Under Eritrean mining law the GSE will receive 10%
equity in the extraction operation, but Doud doubted the GSE would
exercise the option to buy an additional 30%, as they did at Bisha
(reftel). Doud said Bisha was the first major mineral find in
Eritrea, leading the GSE to want the domestic prestige of
ownership.
4. (SBU) Doud also said Chinese-based Beijing Donia Resources was
exploring in areas Nevsun and Sunridge had either explored or
considered, stating their exploration would not make a major find.
He said they were looking for iron ore north of Adi Nefas and gold
at Adi-Ketina, 70 miles south of Asmara near the Ethiopian border.
MCMULLEN
SIPDIS
SENSITIVE
LONDON AND PARIS FOR AFRICA WATCHERS
DEPT FOR AF/E
E.O. 12958: N/A
TAGS: ECON EMIN ER
SUBJECT: SUNRIDGE STRIKES GOLD NEAR ASMARA
Ref: 07 Asmara 907
1. (SBU) Vancouver-based Sunridge Gold Corporation of Eritrea chief
engineer David Doud (protect) told Conoff of a large discovery of
gold, silver, copper, and zinc at Adi Nefas, 4 miles northwest of
Asmara. Doud conservatively estimated gross revenues from the find
at around $1 billion, less capital expenses and extraction costs.
Three more deposits have been found near Asmara, as well as 6 to 10
promising sites waiting to be explored. A gold-only strike of
approximately 189,000 ounces also lies between Adi Nefas and
Asmara.
2. (SBU) Doud described another find at Emba Derho 7 miles
northwest of Asmara as "bigger than Bisha (reftel)," a site he
originally helped Nevsun discover. The deposit is thought to
contain 400,000 ounces of gold, 1.7 billion pounds of Zinc, and 735
million pounds of copper. The Debarwa site 30 miles south of Asmara
contains mostly copper, but is also thought to include gold. All
minerals extracted (other than gold) will be sent by rail, rather
than truck, from Asmara to the port of Massawa for shipment. Doud
said Sunridge will likely be asked by the Government of the State of
Eritrea (GSE) to assist in financing repair the railroad, which is
in drastic need of improvement.
3. (SBU) Doud said Sunridge will begin Eritrean extraction
operations at the Debarwa site, due to the relative ease of mining
and processing; extraction will begin in about two years. Sunridge
will use the cash flow from copper mining to help finance extraction
operations at the other three sites, as well as continued
exploration. Under Eritrean mining law the GSE will receive 10%
equity in the extraction operation, but Doud doubted the GSE would
exercise the option to buy an additional 30%, as they did at Bisha
(reftel). Doud said Bisha was the first major mineral find in
Eritrea, leading the GSE to want the domestic prestige of
ownership.
4. (SBU) Doud also said Chinese-based Beijing Donia Resources was
exploring in areas Nevsun and Sunridge had either explored or
considered, stating their exploration would not make a major find.
He said they were looking for iron ore north of Adi Nefas and gold
at Adi-Ketina, 70 miles south of Asmara near the Ethiopian border.
MCMULLEN