If you do not believe the Opposition Camp is playing with Eritrean wealth, you must be a little challenged upstairs with all respect. Check this out!

In “Eritrea’s Missing $ 1 Billion”, a mindful Eritrean says; “According to figures published by the Canada-based mining company,  Nevsun recorded revenues of $548 million from its Eritrean gold heist operations in 2011 and around $400 million for the year of 2012 (Gold was slightly down). The total revenues accruing to the Government of Eritrea are unknown. However, under the terms of Nevsun’s contract, an estimated 14.1 tons of ore were transferred to the Eritrean authorities in 2011 and 2012, potentially representing over $900 million on sales alone. It’s all opaque but let’s take Nevsun’s figures at face value for the sake examination. The GoE earned over $900 million in cash flow from the Bisha gold mining in the last two years alone.  Where on earth is all that money?”

Miners and explorers in Eritrea: Of the more than ten companies involved in the Eritrean mining industry, the following four are more productively engaged while the others are exploring other sited in different areas of the country.

1: Nevsun Resources (TSE:NSU, AMEX:NSU)

“Nevsun’s Eritrean project is its Bisha Mine. Bisha is a large precious and base metal volcanogenic massive sulfide deposit that commenced gold and silver production in February 2011. The Bisha Mine is expected to produce more than 1.14 million ounces of gold, 11.9 million ounces of silver, 821 million pounds of copper, and over 1 billion pounds of zinc during its initially estimated 13 year mine life. The Eritrean government opted to purchase the 30 percent, in addition to the 10 percent carried interest in the project. “

2: Sunridge Gold (CVE:SGC)

“Sunridge Gold Corp. is Canadian mining company. A feasibility study for the high grade Debarwa copper, gold and zinc deposit commenced in October 2010 and is scheduled for completion in November 2011. A pre-feasibility study commenced in late 2010 on the Asmara North Deposits, Emba Derho, Adi Nefas and Gupo Gold and is scheduled for completion in late 2011 or early 2012.The four deposits contain 1.28 billion pounds of copper, 2.5 billion pounds of zinc,1.05 million ounces of gold, and 31.2 million ounces of silver “

3: Chalice Gold (ASX:CHN)

“Australian Chalice controls a total of eight exploration licenses in northern Eritrea covering an area of 1,370 sq. km. These include the Zara North, Zara Central (comprising Zara 1, 2, 3 and 4) and Zara South exploration licenses, the Hurum exploration license and the Mogoraib exploration license.

The Koka deposit forms part of the Zara gold project, and has an estimated total mineral reserve of 5,04-million tons, at 5,8 g/t gold, for a contained mineral reserve of 944 000 oz, at a value of $1,248,504,755.

This Mineral Resource includes a Probable Mineral Reserve of 4.6 million tonnes grading 5.1 grams of gold per tonne, containing 760,000 ounces of gold. The Company is focused on developing the Koka Gold Deposit into a low cost gold mine which is expected to produce 104,000 ounces of gold per year over a 7 year mine life at an average cash cost of US$338/oz gold (refer to the 43-101 Technical Report on the Koka Gold Deposit, Eritrea dated 27 July 2010).

Chalice also holds a substantial strategic ground position of 1,372 km2 consisting of licenses along strike of the Koka Gold Deposit, and proximal to Nevsun’s Bisha Mine. Production is expected in 2011.”

4: TSX:NGQ

“NGEx Resources (TSX:NGQ), a diversified international mining company that also has a foothold in Eritrea. NGEx’s Hambok project is located near the Bisha mine and in January, 2009 the company reported a NI 43-101 indicated resources estimated of 231 million pounds of copper, 530 million pounds of zinc, 2.3 million ounces of silver and 68,000 ounces of gold. “

Commonsense: all one has to do is itemize and add the amount of resources and estimate the country’s wealth concerning the four companies currently working in Eritrean mining industry. Simple Algebra will get you there!
1: NEVSUNG (BI(SHA): 1.14 million ounces of gold, 11.9 million ounces of silver, 821 million pounds of copper, and over 1 billion pounds of zinc during its initially estimated 13 year mine life.

1.14 million Oz Gold x US$338/oz gold = $385,320,000

11.9 million Oz Silver x US$5/oz Silver = $595, 000,000

821 million pounds of copper x US$2.26/pound = $1,855,460,000

1 billion pounds of zinc x 0.80/pound = $800,000,000.

Comment: Full-fledged production started in 2011 and you can bet that our resources are making money for the company and the government. The resources under NEVSUNG’s Bisha will all be cleaned out in 13 years beginning from 2011, which means they have been used out since three years ago and therefore, everything will be out 10 years from now. Apparently, you will have nothing more left should you let the regime stay in power for another 10 years by refusing to save what is left through unified resistance. Mathematically, each year from 2013 on will slice off 1/10 of the resources in this site with nothing left for the society in 2023. This will be about 3 billion dollars folks and the government will make around $300,000,000 yearly during the ten year period.

2) Sunridge: Its four deposits sites contain 1.28 billion pounds of copper, 2.5 billion pounds of zinc, 1.05 million ounces of gold, and 31.2 million ounces of silver.

1.05 million Oz Gold x US$338/oz gold = $338,000,000

31.2 million ounces Silver x US$5/oz Silver = $156, 000,000

1.28 billion pounds of copper x US$2.26/pound = $2,892,850,000

2.5 billion Pounds of zinc x 0.80/pound = $2,000,000,000

“The results of a preliminary feasibility study (the “Study”) that considered all deposits being processed at a central mill was announced on May 2, 2012. The Study showed production from the Asmara Project of 365,000 tonnes of copper, 812,000 tonnes of zinc, 415,000 ounces of gold and 11 million ounces of silver over a 15.25 year mine life.”

Comment: This means a huge amount of our resources will be cleaned out of this mining site within the coming 12 years. We are talking ABOUT CLOSE TO 6 BILLION DOLLORS IN THIS SITUATION ALONE that you are going to kiss goodbye unless you unite and resist without hesitation. Mathematically, each year from 2013 on will slice off 1/12 of the resources in this site with nothing left for the society in 2025 and the government will make around $600,000,000 yearly during the next twelve year period.

3: Chalice Gold: Aside other minerals in this project (still searching for information), 104,000 ounces of gold per year over a 7 year mine life at an average cash cost of US$338/oz gold (refer to the 43-101 Technical Report on the Koka Gold Deposit, Eritrea dated 27 July 2010) was expected to be cashed in.

Algebra: 104,000 oz Gold x US$338/oz gold = $35,152,000

Comment: Your Gold is gone within 7 years from 2010. You have 4 more years for the gold to be cleaned out of this site in Eritrea and of course with no accountability as to where in the planet the money would be at.

4: TSX:NGQ: 231 million pounds of copper, 530 million pounds of zinc, 2.3 million ounces of silver and 68,000 ounces of gold

68,000 oz Gold x US$338/oz gold = $2,298,400,031.

2.3 million ounces Silver x US$5/oz Silver = $115, 000, 000

231 million pounds of copper x US$2.26/pound = $252,060,000

530 million pounds of zinc x 0.80/pound = $424,000,000

Comment: Over three billion dollars in this project alone that you are playing with while you keep on wasting your time in this ineffective resistance.

Enjoy the show!!

POTASH: This is a different project other than the four companies discussed above.

Potash Price 392.50 USD/tone

Colluli Potash: Sequel Success in Eritrea’s Mining Sector

Friday, 12 October 2012 11:15 | Written by Kesete Ghebrehiwet

Source: Eritrean Ministry of Information: SHABAIT

“What are the developments at Colluli potash deposit since that of last year’s Geo Congress?

After the last year’s geo-congress, we recalculated the resource twice. Based on the resources of October 2011, we completed the engineering scoping study one which targets production of sylvinites with annual production capacity of one million tons per year. After all, the initial investment is also quite low; it is about 740 million US dollars and this is very cheap compared with other industries. For instance, to produce one million tone of potash per year, you need to invest may be one billion US dollars. So, when compared with other deposits, the investment in Colluli is it quit cheap.

On the top of this, we properly defined deposit of area “B” and we also extended the resources there. Accordingly, we recalculated the resources just in last April and now Colluli stands at 1.08 billion tones with 18% of kcl, which means we have a total content of 1.08 billion tones with 18% of kcl, which means we have a total content of 194 million tones of potash.”

Comment:

“For instance, to produce one million tone of potash per year, you need to invest may be one billion US dollars.” The question is why?

Answer: If one tone of potash costs around $392.50 (from the net);

194 million tones of Potash x $392.50/tone  = $76,145,000,000 Dollars or over 76 billion dollars.

Therefore, the profit without considering other undisclosed expenses would at least be 760%

“What could be expected in 2013 and afterwards? Based on the first engineering scoping study, it is very encouraging to proceed with the project. So, we have initiated the definite feasibility study (DFS) and we are expecting to finish this study in July 2013. We are just doing a number of things which are going simultaneously and that way we are intending to speed up production period.

Is the construction underway? We will just finish the DFS. In the mean time, we are negotiating with the Eritrean National Mining Corporation (ENMCO). Sealing the deal with the ENMCO will speed up the mining license permitting. So, we will put an application for mining license and 2014 and 2015 will be construction period and 2016 will be the first production.”

Comment: The Eritrean regime is rushing this project to collect its money from as soon as possible without benefiting our society similar to what it did with the BISHA MILLIONS despite nothing to show for in the country (not even electricity, water, education, and food). The scattered around opposition forces and youth organizations are, however, napping out of strategy refusing to immediately unify and resolve the issue once and for all: clearly you and the next generations will pay the price dearly in terms of your wealth.

“Will the South Boulder start mining with area “A” or are you planning to do it simultaneously with area “B”?

The strategy is to start with area “A”. We will start with the sylvinite; when we see the stratigraphy of the deposit, sylvinite is the top most layer. Therefore, we will start production from sylvinite with initial capacity of one million tones per year. After five years, we may just look to expand it into 2 million or 3 million tones per year; in that case we may start to mine the carnallite. However, the first strategy is to completely finish with Area “A” and to expand it to area “B”.”

Folks; one million tone of potash a year at $392.50/tone = 392.5 X 1000000 = $392,500,000

Expected income for 2016-2021: 5 X 392500000 = $1,962,500,000

After 2022: doubled or tripled a year until it is all gone.

Conclusion:

Eritrea’s POTASH wealth outshines the entire mining industry because the potential of this is likely to exceed 100 Billion Dollars. The information provided here is not the total potential of our wealth since there are other deals going on with other companies on different mining projects but at least the four companies are today working and producing on schedule. Clearly, the Eritrean government believes the wealth is its own and therefore has no responsibility of accountability on the cash revenues out of but it cannot stop the companies from periodically disclosing their activities and revenues because their democratic governments would not allow them to do so.

The question is if the Eritrean people will taste the fruit of the resources under this regime. I do not think so: this regime cannot even provide enough power and water in the to the capital city. Neither could it properly pay the Eritrean miners working under difficult conditions in the mining sites. There is no doubt that the regime has monopolized the economy: it is buying material supplies from other countries and making more money distributing and selling them in Eritrea. No one of course knows where the cash is going considering the broken infrastructures in Eritrea that are performing at their weakest potential. No one can rationally expect to see the money in a country that does not report revenues to the people and habitually deposits it in individual accounts.

The tortoise is running like a horse while the resistance is fruitlessly wasting life without strategy: The future in this regard is crystal clear: most of all our resources will be cleaned out within the next 10 years because material deposits do not expand or grow like fruits; they are constant in volume and they cannot be replaced. Apparently, Eritreans are taking a big risk under this regime. The longer it stays in power the more money government officials make out of and the lesser our resources get. Eritreans are paying the price of procrastinating unity in terms of billions: every minute of delaying unity costs our society a lot of cash; this can be calculated from the available information above using basic algebra brothers and sisters and I encourage you to take the challenge if you have the time.

Give Afwerki another ten years of power and you can kiss your resources good bye with their revenues. Our resources in at least the four cited sited will be completely sacked out by foreign investors and our part of the deal directed to personal accounts out of the country. For what it looks, the government will have cashed in from the majority of our resources (about 80%) within the next 7 years or less.

As for the chance we are taking on our POTASH, I can only tell you to research and find out yourselves but there is no doubt that it is in terms of tens of BILLIONS.

Enjoy the show