|Wed Mar 31, 2010|
Sunridge Gold Initiates Production Study On Asmara Project, Eritrea
|Sunridge Gold Corp. (SGC/TSX.V) announces that PEG Mining Consultants Inc. ("PEG") have been commissioned to conduct a Strategic Production Study (the "Study") of mining and processing options for the four known 100% owned mineral deposits on the Company's Asmara Project in Eritrea. The Study will serve as a roadmap for future engineering studies and will initially focus on the possibility of fast-tracking mining and direct shipping of a small, high-grade copper section of the Debarwa copper supergene zone where grades average between 15% to 20%. (See table below under Debarwa). This scenario may represent a low capital cost production opportunity which could generate near-term cash-flow for Sunridge.|
The Strategic Production Study:
Sunridge has three mineral deposits on the Asmara Project that together contain Indicated resources of 1.28 billion pounds (580,000 tonnes) of copper, 2.5 billion pounds (1,130,000 tonnes) of zinc, 1.05 million ounces of gold and 31.8 million ounces of silver. In addition the Gupo Gold deposit contains 189,000 ounces of gold in the Inferred category (see resource details below). Given recent improvements in the understanding of the metallurgy at Debarwa, the Study will initially focus on fast-tracking part of the supergene copper zone at Debarwa into production and will then lead into further levels of engineering studies at Debarwa and the other three deposits in the form of scoping/pre-feasiblity/feasibility studies. Blue Coast Metallurgy Ltd. ("BCM") are working with PEG to determine the metallurgical compatibility of mineralization from each deposit and options for combining ore processing with the development of flowsheets.
Debarwa Copper-Gold-Zinc VMS Deposit:
The Debarwa deposit already has a shaft, headfame and two levels of underground working that were constructed by a previous company in the 1970s. In order to minimize initial capital costs the Study will examine the potential of using some or all of these facilities to fast-track operations at Debarwa by mining and direct shipping the high-grade copper material from a portion of the supergene zone. This zone contains 15% to 20% copper material (see below) within the larger overall supergene copper zone. The enriched copper zone is located approximately 40 meters below surface over a strike length of approximately 120 meters.
*Highlights of copper-gold intercepts in the copper supergene zone. Results from all these drill holes have been previously announced:
*These represent some of the best drill intercepts of the supergene zone at Debarwa and demonstrate the potential for direct shipment copper material. In total, approximately 120 drill holes have intercepted the supergene copper zone and of these approximately 38 intercepts have average copper intervals grades over 5 %.
The January 21, 2008 MSA Geoservices (Pty) Ltd. ("MSA") Indicated resource estimates for Debarwa are summarized as follows:
An independent Preliminary Economic Assessment (the "PEA") study was completed by Wardrop, a Tetra Tech Company on the Emba Derho deposit in June 2009 (see NR 2009-04) which demonstrated the strong economics of the deposit. The base case IRR is 21.6% with 4 years payback on an estimated capital cost of US$331.8 million with sustaining capital of US$67.3 million. The base case NPV is estimated to be US$203.9 million at a 10% discount rate. The base case economics were based on five-year moving average metal prices which are considerably lower than current metal prices.
The October 2008 Wardrop Indicated resource estimates for Emba Derho are summarized as follows:
The PEG study will examine the economics of a stand alone operation at Emba Derho but will also examine scenarios that include Adi Nefas and Gupo Gold and a separate scenario including Debarwa. Inclusion of material from the other deposits could have a positive impact on mining operations at Emba Derho through the addition of more material and or higher grade material.
The January 21, 2008 MSA resource estimates for Adi Nefas are summarized as follows:
The Adi Nefas high grade zinc-copper-gold deposit is located approximately 6 km east of Emba Derho.
The Gupo gold deposit is located 6 kilometers east of Emba Derho and could potentially be a low cost operation mined in conjunction with the Emba Derho gold cap.
Total Contained Metals
The total contained metal in NI43-101 "Indicated" category is as follows.
Asmara Project -- Total Contained Metal in Indicated Resources
Note: Contained metal estimates are rounded and remain subject to factors such as mining dilution and process recovery losses.
Michael J. Hopley, President and Chief Executive Officer of Sunridge is the Qualified Person for Sunridge and the person responsible for preparation of 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 projects on the Asmara Project in Eritrea and exploration properties in Madagascar.
Sunridge has approximately 76 million shares outstanding and approximately $6.5 million in cash. Sunridge 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 Don Halliday or Greg Davis at the numbers listed below.
SUNRIDGE GOLD CORP.
Michael Hopley, President and Chief Executive Officer
For further information contact:
Don Halliday, Executive Vice President
Tel: 604-899-1505 (direct)
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 press release contains forward-looking statements about the Company and its business. Forward looking statements are statements that are not historical facts and include resource estimates. The forward-looking statements in this press release are subject to various risks, uncertainties and other factors that could cause the Company's actual results or achievements to differ materially from those expressed in or implied by forward looking statements. These risks, uncertainties and other factors include, without limitation risks related to fluctuations in gold prices; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Company's properties; uncertainties involved in the interpretation of drilling results and other tests and the estimation of gold resources; the possibility that required permits may not be obtained on a timely manner or at all; the possibility that capital and operating costs may be higher than currently estimated and may preclude commercial development or render operations uneconomic; the possibility that the estimated recovery rates may not be achieved; risk of accidents, equipment breakdowns and labor disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; and other factors identified in the Company's filings with Canadian securities regulatory authorities. Forward-looking statements are based on the beliefs, opinions and expectations of the Company's management at the time they are made, and other than as required by applicable securities laws, the Company does not assume any obligation to update its forward-looking statements if those beliefs, opinions or expectations, or other circumstances, should change.