Currently one mining and sixteen exploration companies are operating in Eritrea. The total area covered by licenses is 15,627 square kilometers (mining - 39 and exploration - 15,588) comprising approximately 12.5 % of the country's land coverage. In addition to this the Ministry has received applications from six companies for precious, base metal and potash in different parts of the country.  This covers another 23,000 square kilometers of land, which if granted will increase the percentage of land coverage by mineral tenements to 31percent. The details of companies and their activities currently operating and applying for new tenement in Eritrea are briefly described below. To find a free space to apply for a new area see the  Mineral concession map of Eritrea

As a result of exploration, since the first batch of licenses were awarded in mid 1990's,  a resource in excess of 117 million tons has been defined ranging from inferred to proven and containing over 3 million ounces of gold, 41million ounces of silver, 2.2 billion pounds of copper and 4.1 billion pounds of zinc.

Bisha Mining Share Company

 
The Bisha deposit is a large precious metal and base metal-rich volcanogenic massive sulphide and is a joint venture between Eritrea's ENAMCO and Canada's Nevsun Resources Ltd .

Work is going on as according to schedule with a completion of at least 52% of the housing and infrastructure for the Project and assembly of the Process Plant are  well advanced.  Most of the machineries necessary for the mining operations have been imported and delivered. In addition Work has started on tailing storage facility and Pre-strip of the ground for mining operations . Generally it's believed that Mining Operation  will start as planned by the end of 2010.

Average production will be:

Average production of Years 1 and 2 will be 431,000 oz Gold  and  702,000 oz Silver per year

and average production of Years 3 to 5 will be  170 million lb Copper per year  Plus precious metal credits 

 Average production of Years 6 to 10: will be 220 million lb Zinc and 40 millon Ib copper per year Plus precious metal credits

Sub-Sahara Resources (Chalice Gold Mines Limited) ASX Code: CHN

 
Sub-Sahara has been actively exploring in Eritrea for the past eight years and recently the company and its activities have been acquired by Chalice Gold Mines. The company is focused on the Gold potential in its Zara Gold Project in the north-west part of the country.

So far Scoping study has been completed and bankable feasibility study has reached an advanced stage. A resource estimation conducted by  JORC puts the potential to around 944,000oz at 5.8g/t Au and targeting initial high‐margin production, the deposit is expected to yield at least 660,000oz gold total in it's expected mine lifetime of around 6 years. Its forecasted US$424/oz cash operating costs will be required to develop it. The area has high potential because of it's location in the strategic footprint in emerging Arabian‐Nubian gold & base metal province.

Sunridge Gold Corporation [SGC: TSX.V]

 
The work thus far done by Sunridge, a Canadian mineral exploration and development company, has resulted in the definition of four NI 43-101 compliant resources on the Asmara Project with total combined metal content of 1.3 million pounds of copper, 2.5 million pounds of zinc, 1.1 million ounces of gold and 32 million ounces of silver.

The largest deposit is the 63 million tone Emba Derho copper-zinc-gold VMS deposit that is located just 12 kilometers from Asmara. An independent positive Preliminary Economic Assessment study was completed in June 2009 which shows that the deposit has the potential to become a large open-pit mine producing 60 million pounds of copper, 133 million pounds of zinc and 21,000 ounces of gold per year. A Pre-Feasibility Study on the Emba Derho deposit has been completed. Social and Environmental Baseline studies at Emba derho, Organizing Public Consultation and Workshops to stakeholders and further geological works are also underway to enrich the knowledge on the deposit.

The Asmara Project is considered to be a VMS district with many yet undrilled targets that warrant further exploration work. Sunridge plans to drill several of these targets in the near future.

On it's Debarwa licence area, extensions were made to the north and south of the already existing concession and  Geochemical, Geophysical (AMT Survey),  Baseline studies and Environmental studies are underway.

Contacts and discussions were made with several companies to help finance the development of the company's concession areas and an agreement subsequently signed with FTSE-100 listed Antofagasta Plc of Chile. A deal was signed worth $US10 million to fund exploration work, and $US5 million investment to become the largest shareholder in the company.

Sanu Resources (NGEX Resources Inc) [ CA: NGQ]

 
Based on the previous detail exploration works (geological mapping, geochemical and geophysical), Sanu continued its exploration activities in the Kerkebet and Mogoraib exploration licenses targeting VMS deposits despite the massive collapse of the world economy.

Generally most of the works that Sanu accomplished during January to July 2009 are data base entry, geological mapping and map compilation and some follow up and prospecting works in the Kerkebet and Mogoraib licenses.

The most significant activity during the year consisted of preparation of a 43-101 compliant resource calculation of the Hambok deposit. The Hambok resource estimate was prepared by G.H. Giroux of Giroux Consultants Ltd, of Vancouver, Canada and forms part of a new 43-101 report co-authored by Dr. Tucker Barrie and was released in February, 2009.

The Giroux Consultants' combined indicated and inferred resources at a cutoff grade of 2% zinc were calculated to be 10.2 million tones grading 3.0% zinc, 1.0% copper, 7.0 g/t silver, 0.2 g/t gold consisting of an indicated resource of 5.1 million tones grading 3.24% zinc, 1.12% copper, 7.8 g/t silver, 0.2 g/t gold and an additional inferred resource of 5.1 million tones grading 2.8% zinc, 0.96% copper, 6.2 g/t silver and 0.19 g/t gold.

Moreover, prospecting and follow ups that include detailed mapping and detailed magnetometer survey were carried out that covered about 350sq.kms in South West of Koken, Aradaib, Serarat and South of Halay in the Kerkebet License Area.

Eritrea-China Mining Share Company

 
Exploration works that include tunnel sampling are underway in Augaro and the company is preparing to work jointly with Sahar Mineral Corporation.

Beijing Donia Company

 
Beijing Donia is currently working on its license areas namely Woki, Defere, Agume and Adi Kenatib. The main interests of the company are Iron and Copper. The exploration works include geological mapping and geochemical sampling, trenching, Rock chip sampling and magnetic survey and will be followed by drilling.

Andiamo Exploration Limited

 
This is one of the new companies which was granted license in July  2009. It's active around Haikota. So far Target areas are being refined for EM Geophysical studies and regional and detailed mapping, rock and chip sampling in some pre selected areas are underway.

South Boulder Mines Limited  [ ASX:STB ]

South Boulder Mines is a new entrant to the growing mining community in Eritrea and it's the first of its kind in that it is focused in potash project in the Colluli, Danakil area of South-East of Eritrea.

So far five historic hole collars have been identified. Previous (historic) drilling was of a reconnaissance nature only.  Less than 10% of the project area has been explored with drilling.  Logistical preparation and minimal field work is on progress.

London Africa Limited (Prospecting License)

 
This is a private UK company and its prospecting Licence covers 1562km2 and work has so far identified several VMS and Gold Prospects.

Gippsland (Prospecting Licences)

 
It covers 3 licences covering 300km² in the Northern most of Eritrea. The area is Prospective for VMS deposits and gold deposits so far the company has come out with encouraging results that warrant further investigation.