http://www.businesswire.com/news/topix/20140327005280/en
March 27, 2014 07:00 AM Eastern Daylight Time
*Sunridge Gold Increases Post-Tax Value for the Asmara Project, Eritrea*
VANCOUVER, British Columbia--(BUSINESS WIRE)--Sunridge Gold Corp. (the
"Company" or "Sunridge") (SGC: TSX.V/SGCNF: OTCQX) is pleased to report
that it has received updated values from the financial model for the Asmara
Project Feasibility Study (the "Study") which increased the Base Case
post-tax net present value ("NPV") from $345 million to $428 million. The
increased numbers are based on the Company receiving clarity on the tax
laws of Eritrea, specifically the application of historic expenditures and
depreciation in the financial model. The pre-tax value of $692 million for
the Study remains unchanged. The results of the Study were initially
reported on May 28, 2013 and amended on August 21, 2013.
The Study demonstrates that the mining of all four advanced deposits that
make up the Asmara Project (Emba Derho, Adi Nefas, Gupo Gold and Debarwa)
and processing of the ore near the large Emba Derho deposit is economically
robust with a pre-tax NPV (using a 10% discount rate) of $692 million and a
post-tax NPV (10% discount rate) now at $428 million. The new post-tax
number is a significant increase of $83 million from the original post-tax
NPV (10%) of $345 million.
The following outlines the Base Case Highlights from the Study.
*
NPV of $692 million at a 10% discount (pre-tax) NPV of $428 million at a
10% discount (post-tax)
*
Internal rate of return (IRR) - pre-tax 34%, post-tax 27%
*
Base Case metal prices used - $3.25/lb copper, $1.00/lb zinc, $1,400/oz
gold, $25.00/oz silver
*Feasibility Study Report*
An amended Asmara Feasibility Technical Report which incorporates the
updated application of Eritrean tax laws is being completed by lead
engineering company SENET with support from Snowden Mining Industry
Consultants Inc. on resource estimation, mine design, mine planning and
economic modelling in addition to work by Knight Piésold Ltd. on water and
waste management design. Blue Coast Metallurgy Ltd. directed metallurgical
test-work. The new report will be filed on the Company's profile on
www.sedar.com<
http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.sedar.com&esheet=50832761&newsitemid=20140327005280&lan=en-US&anchor=www.sedar.com&index=1&md5=16e3677774ba691cdfccae2483f3b495>within
30 days of this press release.
*Qualified Person*
The Asmara Feasibility was completed by lead engineering company SENET
under the direction of Pieter Theron Projects Director and approved by Neil
Senior, Pr.Eng, an Independent Qualified Person within the meaning of NI
43-101.
Michael Hopley, President and CEO of Sunridge Gold Corp. is the Company's
Qualified Person responsible for the contents of this press release and has
reviewed the information in the release and confirmed that it is consistent
with that provided by the independent Qualified Person responsible for the
Study.
*ABOUT SUNRIDGE:*
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. Sunridge currently has
approximately 210 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<
http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.sunridgegold.com&esheet=50832761&newsitemid=20140327005280&lan=en-US&anchor=www.sunridgegold.com&index=2&md5=1cc46e1770085c9ff5f85e826e427e69>or
call Greg Davis at the number listed below.
*SUNRIDGE GOLD CORP.*
*"Michael Hopley"* *For further information contact:* Michael Hopley,
President and Chief Executive Officer Greg Davis, VP Business Development
Email: greg_at_sunridgegold.com
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. Forward looking statements may include the timing and success
of any application for a mining license or of debt financing and completion
of definitive documentation with ENAMCO.* *Risk and uncertain factors
include, among others: the actual results of current exploration
activities; conclusions of economic evaluations; changes in project
parameters as plans to continue to be refined; possible variations in ore
grade or recovery rates; accidents, labour disputes and other risks of the
mining industry; delays in obtaining governmental approvals, a mining
license, or debt financing, uncertainties in negotiating commercial
arrangements with government entities; 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.*
Contacts
Sunridge Gold Corp.
Greg Davis, 604-688-1263 (direct)
VP Business Development
greg_at_sunridgegold.com
Received on Thu Mar 27 2014 - 08:04:50 EDT