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From: Biniam Tekle (biniamt@dehai.org)
Date: Thu Jul 22 2010 - 09:49:17 EDT
http://www.sunridgegold.com/s/PressReleases.asp?ReportID=410099
Thu Jul 22, 2010
Sunridge Gold Announces Results Of Strategic Production Study And
Metallurgic Testing For Asmara Project, Eritrea
--------------------------------------------------------------------------------
Sunridge Gold Corp. (SGC/TSX.V) ("Sunridge") is pleased to announce that
it has received the final report for the "Strategic Production Study (the
"Study") for the Asmara Project, Eritrea from PEG Mining Consultants Inc.
("PEG"). This Study examined the metallurgical characteristics of the four
resources owned 100% by Sunridge and completed a high-level evaluation of
the economics and the possibilities of combining the development of the
deposits. The results of the Study are intended to serve as a roadmap for
Sunridge for future engineering studies and project development. As a result
of the positive conclusions of the Study, the Company intends to commence
prefeasibility studies for Emba Derho, Adi Nefas and Debarwa in the near
future.
Three of the mineral deposits held by Sunridge 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 towards the
end of this release).
The Study
The initial focus of the Study was to examine the possibility of
fast-tracking a high-grade portion of the copper supergene zone at the
Debarwa deposit, in the southern part of the project area, into production
by selective mining and direct shipping the material to a smelter. In
addition, the Study examined the concept of the combined development of the
Debarwa Deposit (less the direct shipping material) and the three properties
to the north, Emba Derho, Adi Nefas and Gupo, all located within
approximately 7 km of each other (see map at the end of this release).
A summary of key conclusions of the Study are as follows:
Debarwa Direct Shipping of High-grade Copper Supergene Material:
•PEG has concluded that it is possible to selectively mine a high-grade
(+15% copper) portion of the Debarwa copper supergene zone for direct
shipping to a smelter (Direct Shipping Option -- "DSO") thereby eliminating
the need for a process plant facility early in the mine life.
•After the DSO start-up period a flotation plant and further mine
development would be required to exploit the remaining transition, supergene
and primary zones at Debarwa. This longer term (9-year) production scenario
further improves the economics of the deposit. After the DSO start-up period
a flotation plant and further mine development Trade-off studies by PEG
mining engineers have concluded that underground mining using a ramp, as
opposed to using the existing vertical shaft, is the preferred method of
access to the mineralized material at Debarwa.
Combined Development of Emba Derho, Adi Nefas, Debarwa and Gupo Gold:
•Recent mineralogy and metallurgical test work indicates that copper and
zinc mineralization from the Emba Derho, Debarwa and Adi Nefas deposits all
respond to extraction by froth flotation in a similar manner and therefore
co-processing these materials in a single flotation process plant is deemed
feasible. To confirm this, further tests on blended material are
recommended.
•Oxide gold mineralization from all four of the deposits responds well to
gold recovery by cyanidation therefore this material could be co-processed
in a single central cyanide leach plant.
•PEG concluded that the development of a central process facility for both
base metals and gold at Emba Derho will provide significant economic
benefits for the other three deposits through capital cost synergies for
items such as process plant equipment, infrastructure and tailings disposal
facilities.
•In PEG's opinion the inclusion of a Dense Media Separation (DMS) ahead of
the Emba Derho process plant represents a significant opportunity to improve
project economics by rejecting barren dyke material prior to grinding. More
detailed examination of this option is recommended for the prefeasibility
study.
Metallurgical Work
As part of the Study, Blue Coast Metallurgy Ltd. ("BCM") worked with PEG to
determine the metallurgical compatibility of mineralization from each
deposit and options for combining ore processing with development of
flow-sheets. Highlights of the work are as follows:
•Both mineralogy studies and initial flotation testing point to Emba Derho
and Adi Nefas being fully compatible mineralogically . They both have
typical polymetallic mineralization and are showing good response to early
tests employing conventional flotation treatment schemes.
•Batch tests on the composite samples as received have indicated:
◦Emba Derho sample:
■Copper-rich zone; 91% copper recovery to a nominally saleable copper
concentrate (subject to acceptable minor element analysis). Grades of the
concentrate up to 28% copper have been made and accompanying zinc grades are
below what would attract significant penalties from most copper smelters.
■Zinc-rich zone; up to 96% zinc recovery to combined copper and zinc
concentrates, with indications that with further optimisation tests the vast
majority of this material can be directed into a saleable zinc concentrate.
◦Adi Nefas primary sample:
■A composite containing 3% copper and 21% zinc has been subject to two
rougher flotation tests.
■Both the copper and zinc floated extremely well, with recoveries of 97-99%
to the combined copper and zinc concentrates.
■Early evidence points to selective flotation being achievable, using a
primary grind and a flowsheet that is essentially the same as Emba Derho,
however no definitive recovery numbers are available yet.
◦Debarwa primary:
■Mineralogical benchmarking suggests that the Debarwa primary mineralization
is amenable to the same flowsheet as Emba Derho and Adi Nefas although this
will need to be confirmed with further testwork.
Resource Summaries
Debarwa
Indicated resource estimates from report titled "Debarwa Project, Eritrea --
Mineral Resource Estimate" prepared by MSA Geoservices (Pty) Ltd. ("MSA")
dated January 21, 2008 (which may be viewed under Sunridge's profile on
SEDAR at www.sedar.com) 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
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Emba Derho
Indicated resource estimates for Emba Derho from report titled "Emba Derho
Project, Eritrea - Mineral Resource Estimate" prepared by Wardrop dated
October 31, 2008 (which may be viewed under Sunridge's profile on SEDAR at
www.sedar.com) are summarized as follows:
-----------------------------------------------------------------------
-----
Cut-off Million
Zone grade Tonnes Copper % Zinc % Gold g/t Silver 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
----------------------------------------------------------------------------
Adi Nefas
Indicated resource estimates for Adi Nefas from report titled "Adi Nefas
Project, Eritrea - Mineral Resource Estimate" prepared by MSA Geoservices
(Pty) Ltd. ("MSA") dated January 21, 2008 (which may be viewed under
Sunridge's profile on SEDAR at www.sedar.com) are summarized as follows:
---------------------------------------------------------------------
A
di 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
Inferred resource estimates for Gupo from report titled "Independent
Consulting Geologists Technical Report - Asmara Project" prepared by
Blackburn, G. and Chisholm, R., dated April 2004 (which may be viewed under
Sunridge's profile on SEDAR at www.sedar.com) are summarized as follows:
------------------------------------------------------------
Gupo Gold - Inferred Resources
------------------------------------------------------------
Average Gold Grade
Tonnes g/t Ounces of Gold
------------------------------------------------------------
1,965,000 2.99 189,000
------------------------------------------------------------
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. The data disclosed
in the "Metallurgical Work" section is preliminary in nature, is part of
ongoing metallurgical test work and has not therefore been verified by the
Qualified Person.
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
$4.7 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
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
www.sunridgegold.com
SOURCE: Sunridge Gold Corp.
mailto:donh@sunridgegold.com <donh@sunridgegold.com>
mailto:greg@sunridgegold.com <greg@sunridgegold.com>
http://www.sunridgegold.com
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