Sheba received Licence in Ethiopia for Exploration of Gold and Base Metals

StockMarketWire.com - Sheba Exploration (UK) Plc has been awarded an exclusive exploration licence for gold and base metals covering around 110 sq km in northern Ethiopia.

The licence is valid for an initial three years and may be renewed for two years or converted into a mining licence.

Sheba said the new licence is a consolidation of two previous prospecting licences, Finarwa and Winibo, on which it identified significant gold and copper mineralization in 2007-2009.

The company's interest is 95%, with the remaining 5% retained by the Ethiopian government.

Sheba has a work programme for the Finarwa EEL over the next 12 months aimed at locating the primary source of gold being extracted by local people from river sediments.