|Mon Aug 20, 2012|
Enamco Intends to Acquire 30% Of Sunridge's Asmara Project, Eritrea
|Sunridge Gold Corp. (the "Company" or "Sunridge") (SGC:TSX.V/SGCNF:OTCQX) is pleased to announce that the Eritrean government through the Eritrean National Mining Corporation ("ENAMCO") has informed the Company that ENAMCO intends to acquire a 30% paid participating interest in the Company's Asmara Project in Eritrea. This 30% interest is in addition to ENAMCO's existing right to receive a 10% non-assessable interest that will be carried to production by the participating partners. The terms of the acquisition of the participating interest by ENAMCO have not yet been established and will be determined by negotiation.|
Michael Hopley, President and CEO of Sunridge commented, "We are very pleased that ENAMCO has made the early decision to purchase a participating interest and become our partner to bring the Asmara Project into production. This kind of support from the government, for the development of what will be the largest mine in Eritrea, is a major validation of the project and will certainly help with completion of the next steps towards production -- completion of the feasibility study, mine permitting and construction financing. We look forward to working with ENAMCO to bring the Asmara Project into production as soon as possible for the mutual benefit of Sunridge and the people of Eritrea".
The Asmara Project consists of four mineral deposits, the Emba Derho, Debarwa and Adi Nefas copper-zinc-gold and silver deposits and the Gupo gold deposit all located within 40 kilometres of the capital city of Asmara. 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. The Study also demonstrated a pre-tax net present value of $555 million at a 10% discount rate and an estimated initial capital cost of $489 million. Sunridge is currently completing a feasibility study on the Asmara Project which is planned for completion in 2013, subject to financing. Application for a mining license and permitting will follow the completion of the feasibility study and the social and environmental impact assessment study.
Mr. Hopley is the Qualified Person who approved the technical information contained in this news release.
Sunridge is a mineral exploration and development company focused on the acquisition, exploration, discovery and development of base and precious metal deposits on the Asmara Project in Eritrea and exploration properties in Madagascar. Sunridge currently has approximately 123 million shares outstanding and trades on the TSX Venture Exchange under the symbol SGC. For additional information on the Company and its projects please view the slide show on our website at www.sunridgegold.com or call Greg Davis at the numbers listed below.
SUNRIDGE GOLD CORP.
Michael Hopley, President and Chief Executive Officer
For further information contact:
Greg Davis, VP Business Development
Tel: 604-688-1263 (direct)
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Such factors include, among others: the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; possible variations in ore grade or recovery rates; accidents, labor disputes and other risks of the mining industry; delays in negotiating a shareholders' agreement with ENAMCO and obtaining governmental approvals or financing; and fluctuations in metal prices. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.