TSX.V : AAN : $
banner-right
Projects > Hamama Gold-Silver-Zinc-Copper VMS
 
Hamama Gold-Silver-Zinc-Copper VMS
 
Summary

The Hamama volcanogenic massive sulphide (“VMS”) deposit is one of Alexander Nubia’s two premier deposits that occur in its substantial land package (Abu Marawat and Fatiri Concessions) with excellent infrastructure in the Eastern Desert of Egypt. Technical work completed to date demonstrates that Hamama has similar characteristics to other major VMS deposits in the Arabian-Nubian Shield (“ANS”).  

 
The Company is excited about the prospects at Hamama VMS deposit for a host of reasons:
 
(1) VMS deposits constitute an important type of deposit, as they are a significant producer of copper, zinc, lead, gold and silver
 
(2) The ANS is a proven host to world-class deposits
 
(3) Technical work completed to-date indicates strongly that Hamama is a major VMS system
 
(4) Potential for sizeable ore-grade massive sulphide mineralization
 
(5) High quality local and regional infrastructure
 
(6) Industry-recognized technical and advisory team with a proven record of discoveries that have been advanced to production, complimented by an executive and operational team with established track record of success.
 
 
 
Unlocking Shareholder Value - Model Deposits in the Region
 
The mineral wealth of the Arabian Nubian Shield (“ANS”) has been only slightly explored; the area may be the next major exploration frontier in Africa, with results similar to those of the earlier West African mineral exploration boom. The ANS underlies parts of Egypt, Sudan, Eritrea, Ethiopia, Djibouti and Saudi Arabia, and is host to two principal types of deposits:
  1. Mesothermal gold vein deposits; and
  2. Volcanogenic massive sulphide (VMS) deposits
 
In addition to these deposit types, Alexander Nubia’s land package contains a few past-producing gold-vein mines and several areas of historic and prehistoric gold workings. Considering only the Hamama VMS and the Abu Marawat mesothermal vein deposits, the Abu Marawat Concession has the potential to contain substantial quantities of gold, copper, zinc and silver.
 
Exploration companies that are successful at advancing these types of deposits in the ANS have generated significant enterprise value for their shareholders; below are a few examples:
 
  1. Jabal Sayid VMS (Saudi Arabia), was acquired for AUS $1.2 billion by Equinox Resources (now controlled by Barrick Gold)
  2. Hassai VMS (Sudan), was the main deposit acquired for $493 million by Weather II Fund (Sawiris Family)
  3. Bisha VMS (Eritrea), generated a market capitalization for Nevsun Resources from $650 million to $1.4 billion
  4. Sukari Gold Mine (Egypt) generated a market capitalization for Centamin Egypt from $700 million to $2.5 billion.
 
Figure 1: The deposits located within the Arabian-Nubian Shield
 
 
Prized Asset – Hamama VMS
Alexander Nubia believes that the Abu Marawat Concession contains substantial unlocked value, in particular, in the Hamama VMS deposit.
 
Hamama is 35 km in direct line from ANI’s Abu Marawat vein deposit, which contains a NI 43-101-compliant inferred resource of 397,000 ounces of gold + gold-equivalent of silver, copper, and zinc. Preliminary conceptual analysis suggests that the Abu Marawat deposit could provide feedstock for a potential mill facility that would be located at Hamama; regarding this a detailed scoping study is required.
 
Key Highlights
  1. The Main VMS Horizon, traced 3,000 metres along strike, is one of the largest compared to the other major VMS deposits in the ANS:
    1. Bisha (Nevsun Resources)
    2. Jabal Sayid (Barrick Gold)
    3. Hassaï (Weather II Fund, Sawiris Family)
  2. Oxidized gold-silver cap at surface: 650 metres along strike and average 43.8 metres wide (up to 110 metres) grading 2.05 g/t gold and 44.7 g/t silver
  3. Significant zinc-gold-silver exhalite mineralization at depth
  4. Significant disseminated gold-silver mineralization at depth in altered stratigraphic footwall rocks
  5. No overburden
  6. Very favourable infrastructure and geology 
  7. Potential for significant ore-grade massive and semi-massive sulphide mineralization
Figure 2: Infrastructure available to the Fatiri and Abu Marawat Concession 
 
 
Attractive Technical Qualities
  1. Substantial Strike Length: Compared to other major VMS deposits in the Arabian-Nubian Shield (Bisha, Hassai and Jabal Sayid), the Main VMS Horizon, extending 3,000 metres along strikeis one of the largest (see Figure 3).
  2. Gold-Silver Cap: Trenching and drilling confirm an oxidized gold-silver cap, a common characteristic of VMS deposits in this region. Trenching identified an oxidized gold-silver mineralized zone (gold-silver cap) 650 metres along strike and up to 110 metres in width within the 1,300-metre-long Western VMS Zone. Drilling confirms that at depth the gold-silver mineralization extends at least 400 metres along strike and is open to the west and east and at depth.
  3. Zinc-Gold-Silver-Rich Exhalite: The exhalite intersected in drilling is mainly zinc-gold-silver-bearing. This type of mineralization commonly occurs in the lower-temperature, outer zones of VMS deposits, which suggests the possibility of finding a higher-temperature, Cu-rich core elsewhere in the system.
  4. Disseminated Gold-Silver: Drilling has intersected disseminated gold-silver semi-massive sulphide mineralization below the oxidized gold-silver cap, both in exhalite and in strongly altered footwall rocks. The extensive mineralization below the exhalite (sea-floor) zone suggests that the deposit was formed from a major metal-rich hydrothermal system.
  5. Rare Drill Results100% of the drill holes in the Western VMS Zone intersected mineralization. The results demonstrate the mineralized unit outlined in trenches continues at depth in the area tested by drilling (AHA-12 to AHA-26) and is open down dip. Overall, 90% of the drill holes in the first drill campaign (AHA-01 to AHA-26) intersected mineralization.
Figure 3: Plan view map of the Main VMS Horizon, Hamama VMS Deposit

The extensive ankerite-rick exhalite outcrop (in pink) and gossan (in pink with red hatches) represent the outcrop zone of the Main VMS Horizon, extending 3,000 metres along strike. Further, mapping and sampling is required to evaluate the extent of the favorable VMS horizon.

No Overburden – Reduces Exploration Risk & Cost
  1. Allows for timely assessment of geological contacts and identification of areas of interest for sampling and follow-up drilling
  2. Reduces mining costs if and when the deposit becomes economic, with little to no waste removal required to access the ore body, making inexpensive open-pit mining an attractive option.
  3. An exposed ankerite exhalite and gossan zone at surface, traceable over 3,000 metres, with ankerite commonly on the flanks and below the gossan.
  4. A principal aspect of exploration of VMS deposits is understanding the nature and location of the original seafloor position to identify the potential location of massive sulphide zones. 
  5. A well exposed, moderately to steeply overturned deposit; the former reduces exploration risk and cost and the latter makes for low development and mining costs in the production stage of underground operations in deeper parts of the deposit.
Interpretation

Collectively, the above factors strongly suggest that:

  1. Hamama is a major VMS system,
  2. Because many VMS deposits have a high-temperature, copper-rich core, massive sulphide mineralization (major bodies yet to be discovered at Hamama) probably contain substantially higher grades of copper (and zinc) than the semi-massive zones encountered so far.