April 2 , 2006 (Addis Ababa) —An Ethio-Russian joint venture firm has been given the go-ahead to engage in large-scale mining of placer gold (alluvial gold), according to local reports on Saturday.

The Western Wollega Gold Exploration PLC was granted a license to prospect for alluvial gold in Denghi, Western Wollegea Zone of the southern Oromia State, said officials with the Ministry of Mines and Energy on Saturday.

The license area covers an area of 533,376 sq. km. Through the license, the company is granted an exclusive eleven-year right to conduct large-scale placer gold mining.

Geological surveys, conducted by Ethiopian and Russian experts on an area of 490 sq. km., proved that the 100 sq. km. in Denghi was fit for prospecting. The company also came across platinum during the surveys and plans to do further assessment.

The firm was set up by Ethiopian and Russian investors. Having obtained a license for exploration of primary gold in 1999, the firm was prospecting for primary gold when it discovered an adequate amount of placer gold suitable for large-scale production.

The company has Russian geologists, who have long-time experience in gold exploration in other African countries. Two of the experts, who had worked for over 30 years in Africa, are known for gold discovery in Mali and Guinea.

Source: Xinhua