From: Berhane Habtemariam (Berhane.Habtemariam@gmx.de)
Date: Thu Apr 01 2010 - 07:48:43 EST
press release - Sunridge Gold Initiates Production Study on Asmara Project,
Eritrea
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01/04/2010
VANCOUVER, BRITISH COLUMBIA, Mar 31, 2010 (MARKETWIRE via COMTEX) --
Sunridge Gold Corp. /quotes/comstock/11v!sgc (
<http://www.marketwatch.com/investing/stock/SGC?countrycode=ca> CA:SGC 0.45,
+0.01, +2.27%) 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.
(i) Highlights of copper-gold intercepts in the copper supergene zone.
Results from all these drill holes have been previously announced:
-- DEBD-005 20.36 % Cu, 2.18 g/t Au, and 103.73 g/t Ag over 13.00 meters.
-- DEBD-019 21.27 % Cu, 2.29 g/t Au, and 90.51 g/t Ag over 9.80 meters.
-- DEBR-008-D 20.18 % Cu, 3.43 g/t Au, and 67.10 g/t Ag over 6.00 meters.
-- DEBR-021-D 20.59 % Cu, 1.96 g/t Au, and 97.81 g/t Ag over 11.30 meters.
-- DEBR-022-D 19.31 % Cu, 5.80 g/t Au, and 85.27 g/t Ag over 7.0 meters.
-- DEBR-024-D 21.13 % Cu, 6.88 g/t Au, and 110.41 g/t Ag over 6.00 meters.
-- DEBR-036-D 20.87 % Cu, 1.99 g/t Au, and 92.63 g/t Ag over 11.00 meters.
-- DEBR-044-D 20.19 % Cu, 2.18 g/t Au, and 85.41 g/t Ag over 6.05 meters.
(i) 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:
-----------------------------------------------------------------------
Debarwa - Indicated Resources
-----------------------------------------------------------------------
Zone Cut Off K-tonnes Au g/t Ag g/t Cu% Zn%
-----------------------------------------------------------------------
Oxide+Transition 0.5 g/t Au 2,442 1.71 13.79 0.12 0.09
-----------------------------------------------------------------------
Supergene 1% Cu 1,336 1.54 33.87 5.36 0.08
-----------------------------------------------------------------------
Primary 1% Cu 699 0.87 22.31 2.53 3.23
-----------------------------------------------------------------------
Totals 4,478
-----------------------------------------------------------------------
Emba Derho
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:
----------------------------------------------------------------------
Cut-off Million Copper Zinc Gold Silver
Zone grade Tonnes % % g/t g/t
----------------------------------------------------------------------
Gold Oxide 0.2 g/t Au 3.51 0.06 0.04 0.84 5.14
----------------------------------------------------------------------
Copper-rich Primary 0.5% Cu 38.425 1.02 0.99 0.18 9.31
----------------------------------------------------------------------
Zinc-rich Primary 1.0% Zn 20.545 0.28 2.35 0.39 12.13
----------------------------------------------------------------------
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.
Adi Nefas
The January 21, 2008 MSA resource estimates for Adi Nefas are summarized as
follows:
-----------------------------------------------------------
Adi Nefas - Indicated Resources
-----------------------------------------------------------
Zone Cut Off K-tonnes Au g/t Ag g/t Cu% Zn%
-----------------------------------------------------------
Primary 2% Zn 2,727 2.85 99.30 1.39 8.38
-----------------------------------------------------------
The Adi Nefas high grade zinc-copper-gold deposit is located approximately 6
km east of Emba Derho.
Gupo Gold
-------------------------------------------------------------
Gupo Gold - Inferred Resources
-------------------------------------------------------------
Tonnes Average Gold Grade g/t Ounces of Gold
-------------------------------------------------------------
1,965,000 2.99 189,000
-------------------------------------------------------------
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
----------------------------------------------------
Deposit M lbs Cu M lbs Zn K oz Au M oz Ag
----------------------------------------------------
Emba Derho 993 1902 580 20.1
----------------------------------------------------
Debarwa 203.6 57.0 219.8 3.0
----------------------------------------------------
Adi Nefas 83.7 503.6 250.0 8.7
----------------------------------------------------
Totals 1,280.3 2,462.6 1,049.8 31.8
----------------------------------------------------
Note: Contained metal estimates are rounded and remain subject to factors
such as mining dilution and process recovery losses.
Qualified Person
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.
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 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 <http://www.sunridgegold.com>
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
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.
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.
Contacts:
Sunridge Gold Corp.
Don Halliday
Executive Vice President
604-899-1505 (direct)
donh@sunridgegold.com
Sunridge Gold Corp.
Greg Davis
VP Business Development
604-688-1263 (direct)
greg@sunridgegold.com
<http://www.sunridgegold.com> www.sunridgegold.com
SOURCE: Sunridge Gold Corp.
mailto:donh@sunridgegold.com
mailto:greg@sunridgegold.com
<http://www.sunridgegold.com> http://www.sunridgegold.com
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