Project Work Plan For GOLD EXPLORATION AND FEASIBILITY STUDY

PROJECT PROPOSAL for EXPLORATION AND

FEASIBILITY STUDY OF GOLD MINING

IN

SHERKOLE WOREDAS OF ASOSSA ZONE

BENISHANGUL GUMUZE REGIONAL STATE

Project Owner:- HERALA SPECIAL SMALL GOLD MINING PLC

Project Location: - BG Region, ASOSSA ZONE,

SHERKOLE Woreda, Halmo Babe kebele

SUBMITTED TO: - BENISHANGUL GUMUZE REGIONAL STATE MINERALS

RESOURCES DEVELOPMENT AGENCY

March /2021 Assosa

Project Work Plan For GOLD EXPLORATION AND FEASIBILITY STUDY

Contents
Introduction..........................................................................................................................................3
General..................................................................................................................................................3
Objective of the proposal......................................................................................................................4
General Objective..................................................................................................................................4
Specific Objective..................................................................................................................................4
Geography..............................................................................................................................................5
Location of the project..........................................................................................................................5
Physiographic.........................................................................................................................................5
Climate...................................................................................................................................................6
Fauna and Flora....................................................................................................................................6
Human settlement and land use...........................................................................................................6
Public Services.......................................................................................................................................6
General Geology....................................................................................................................................7
Methodology of the proposal................................................................................................................7

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Project Work Plan For GOLD EXPLORATION AND FEASIBILITY STUDY

Introduction

General
Gold and other minerals are a crystalline compact variety of metamorphosed limestone with
distinctive luster caused by the reflection of penetrated light from the surface of inner crystals. It
is durable stone in dry atmosphere, which makes it attractive for ornaments. Huge deposits of
raw gold of varied quality found in Wester Ethiopia Beneshangul- Gumuz, Moreover, the
production of gold is gaining popularity due to the increase in its economic value in Ethiopia.
Today almost all the cement factory use gold as raw material the final touch of beautiful shades
of gold in exterior as well as interior positions. Therefore, it is reasonable to conclude that there
is a great demand for gold knows a day.

On the other hand, the modern gold production is also evolving through a process of deep
renovation of its production system. In the process, it was made possible to use the most modern
machinery in every phase of production: quarry and plant. Consequently, it becomes possible
to make better use of stone deposits, generate less waste material and achieve higher yields
this indicates that significant advances in processing machinery especially block cutting,
diamond based sawing, grinding and polishing tools have achieved the major productivity
improvements of the gold.

The market for natural minerals expected to grow for the coming two decades. The trade for both
gross and finished products is all so expected to increase. This indicates the existence of
international market for the proposed quarrying and sale gold. The local gold production and
other natural resource demand have increased since the launching of the free market economy.
This is expected to continue in the future. Accordingly, the demand for the gold expected to
increase. Therefore considering the international market trend and the domestic need, Herala
special small scale gold Mining PLC production Enterprise decided to investigate the gold resource of
the reconnaissance area with the aim of producing high quality gold to the market.

Meanwhile Herala special small scale gold Mining PLC production Enterprise intending to engage
in the reconnaissance of goal product in Beneshangul Gumuz Regional State, Asossa zone
sherkole Wereda in halmo babe rural kebele Herala special small scale gold Mining PLC production
Enterprise will use well experienced skilled and semi-skilled professionals in the process and
machineries which have minimal environmental impact will be adopted for the exploration and

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Project Work Plan For GOLD EXPLORATION AND FEASIBILITY STUDY

mining activities; and will consider the mitigation of the environmental impact and make
appropriate resource survey before disturbance of the areas that may be affected by the project.
To join the limited number of companies already established to produce gold and contribute to
the ever-growing demand of gold in the country.
Objective of the proposal

General Objective
The general objective of this project is to conduct gold Exploration Works in order to evaluate
the reserve and quality of the gold resource that can be set as a good source of economic growth
in the region and the country In order to develop the deposit in to mine; the deposit will be
economically and environmentally feasible.
Specific Objective
The main objective of the reconnaissance on the proposed target area is

 To identify the amount of gold deposit in the area and demarcation of the site.
 To identify the appropriate quality of the gold mining in the area selected.
 To identify the appropriate quantity that can be explore mined, processed and
economically supplied to gold and international market.

Geography

Location of the project

The proposed project area is located in Benishangul gumuz Regional state Asossa zone Sherkole
Wereda halmo babe rural kebele.

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Project Work Plan For GOLD EXPLORATION AND FEASIBILITY STUDY

Figure 1: Location Map of the Visiting Area

Physiographic
The reconnaissance Area and the surrounding area are characterized by low relatively flat
topography with small hills, creeks, and streams. The highest and the lowest altitude above mean
sea level are 1179m and 590 m, respectively. The area is not characterized by moderate drainage
systems. Is the one perennial river; it traverses the southern part of the Visiting Area.
Climate
The climate of the license area is classified in the tropical arid zone. The coldest months and the
rainy season are from June to September, while the driest and hottest season is from December to
May. The average seasonal temperature varies between 17oC and 45oC. Annual precipitation
varies from 800mm to 1200mm with some irregularities (Ethiopian mapping agency, 1981).
Fauna and Flora
The area is characterized by dense to sparse forest consisting of bamboo, baobab, palm trees,
thick thorny bush, shrubs, and savanna grasses. The vegetation is home to several wild animal
species such as ape, baboon, antelope, hyena, monkey, rabbit, porcupine, “bush buck”, warthog,
and different species of snakes and birds. Burning and cutting of the savanna grasses during the
dry season highly affects the fauna and flora of the region.

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Project Work Plan For GOLD EXPLORATION AND FEASIBILITY STUDY

Human settlement and land use

The population density of the license area and its surroundings is sparse. Bertha people whose
native language is Berthagna Most of the Bertha people is Muslim mainly inhabit the area of
Asossa Zone specially sherkole woreda. The inhabitants’ means of existence is mainly based on
cultivation, domestic animal breeding, honey bee husbandry and trading. The Bertha people
practice gold panning and semi agricultural as a supplementary source of revenue. Animals such
as goats, sheep, cattle, hens and donkeys are the main domestic animals they breed and maize,
sorghum, oil seeds, peanuts, lemons, bananas, sesame and other plants are the main products of
cultivation.

Public Services
The Asossa Zone sherkole Wereda such are the nearest halmo towns to the Benishangul Gumuz license
area with telephone, police station, health station; public transportation and some shopping services.
Other necessary materials such as food, fuel, lubricants, clinical obtain from halmo towns but banking
services obtained from Asossa town. The some of Asossa zone woreda and kebele have the Access of
telephone and Road.

General Geology
The simplified geological map of Ethiopia presents the central part of Ethiopia covered with
Tertiary and Quaternary volcanic rocks, the southeastern half covered with Jurassic, Cretaceous
and Tertiary sedimentary rocks, and the western part along the border with the Sudan and
Northern part of Ethiopia covered by Precambrian rocks dominated by low grade met sediments
and met volcanic rocks in the west are bounded by high grade metamorphic gneiss and intruded
by plutonic rocks of various types of granites, granodiorites and basic rocks. Some ultrabasic
rocks have been mapped associated with the low grade metamorphic rocks in the western.

The recognition of the Precambrian ultrabasic rock suites and their dismembered remnants in
association with the metasediments and metavolcanics and plutonic rocks across much of the
western Ethiopia has driven many of the previous mapping geologists to believe and recognize
the western Ethiopia as Precambrian ophiolite suture. However, to the extreme southern part of
Ethiopia there are localized areas underlain by migmatites of high grade metamorphic rocks.

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 Project Work Plan For GOLD EXPLORATION AND FEASIBILITY STUDY

Methodology of the proposal

To evaluate the gold mining resource the following Visiting Area approaches and methods will be
applied :

 Literature review, assess previous work data to understand the general geology of the
area
 Conduct geological mapping at 1:10,000 to 1:2,000 scale
 Topographic survey on most potential part (on potential quarry site areas)

To fulfill the field work has instruments like compass, GPS, hammer, lens, and weak acid
while topographic survey will be performed on contract bases.

6. EXPENDITURE FOR RECONNAISSANCE

Table 1: Man Power

No Description Amount Days Unit Price Total Price

1 Geologist 1 20 2000 40,000
2 Environmental study 1 20 500 10,000
Staff
Total 50,000

Table 2: Car Rent

No Description Amount Days Unit Price Total Price
1 Car rent D4D 1 20 2000 40,000
2 Fuel 20 Liter 20 20.00 8,000
Total 84,000

Item Amount
Man power 50,000.00
Vehicle 40,000.00
Fuel Lubricant and Maintenance 20,000.00
Grand Total 110,000.00