The ongoing unrest between Ethiopia and Eritrea continues to be a deterrent to the development of the mineral industry in Eritrea. Most companies involved in Eritrea have been embarking on grassroots exploration programs, assessing stream sediment and geophysical results. No commercial mineral deposit has been located to date. However, artisinal gold production is said to produce approximately 550kg of gold per year.
Australian junior Sub Saharan Resources acquired an 80% interest in three exploration licences, Debarwa, Medrizien and Adi Nefas, covering approximately 1,200 km2 of highly prospective ground partially surrounding Asmara. In February 2003, the company signed a joint-venture agreement with Dragon Mining NL to potentially acquire up to 70% of the latter's interest in the Zara gold project in the north of Eritrea.
Mineral occurrences in Eritrea include copper, zinc and lead sulphides in the Asmara region; primary gold deposits in the Precambrian terranes west of Asmara; iron deposits east and south of Asmara; and a nickel-chromite deposit in the northwest near the Sudanese border. Sub Saharan Resources have begun initial investigations at their Asmara Project that has the potential to host base metal and goild mineralisation. The area is known to be prospective for VMS mineralisation with encouraging gold results being recorded from old workings at Medrizien and Woki Duba.
Rift Resources has been active in gold and base metal exploration in the country and properties include the Adi Nefas project (North of Asmara) which is estimated to have 1.2 Mt grading at 11.5% zinc, 1.1% copper, 4.4 g/ton gold and 165 g/t silver. Other properties include the Kefina, Nefasit – Mout Subab and Tekeze areas. Rift also has a 40% interest with Anglo American on the Augaro project.
Through local subsidiary, Eritrean Minerals Corporation (EMC), Canadian Adulis Minerals Corporation has completed gold exploration on four of its properties in Eritrea. Included was diamond drilling, reconnaisance sampling and grab sampling over the Harab Suit, Seroa and Seroa prospects.
Nevsun Resources Ltd is an emerging gold producer focusing on exploration in Africa. In Eritrea, it holds a 1,188 km2. land area covered by four exploration licences, including the Augaro area. In January, 2003, Nevsun announced the results from the initial phase of drilling, totalling 804 m in six holes at its Bisha property, located 150 km west of the capital city, Asmara. High-grade assays included: 6.27% Cu, 1.18 g/t Au and 42.1 g/t Ag over 24.5 m in Hole B-02-4; and 32.5 g/t Au, 1,382 g/t Ag over 7.62 m, and 4.92% Cu, 0.81 g/t Au and 34 g/t Ag over 8.23 m in Hole B-02-5.
Sanu Resources Inc. from British Virginia Islands has the right to explore in four different parts of Eritrea. Sanu is focusing on its northern licences of Dieba and Kerkebet.
