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From: Berhane Habtemariam (Berhane.Habtemariam@gmx.de)
Date: Sat Oct 09 2010 - 08:03:24 EDT
Sunridge Gold begins exploration project in Eritrea
company news image
Friday, October 08, 2010
Sunridge Gold (TSX-V: SGC) has begun a new exploration drilling program at
the Asmara Project in Eritrea in northeast Africa.
The new joint venture program, which is operated by Sunridge and funded by
Antofagasta Minerals, consists of at least 3,000 metres of diamond drilling
and is targeting areas that have the potential for large new discoveries,
the company said.
These areas include Adi Watot, a zone measuring approximately 1,200 metres
long and 400 to 500 metres wide with elevated copper values; Adi Kubulo, an
area with similar geology to Adi Watot, although somewhat smaller; the Adi
Watot-Adi Kubulo Corridor, a target that is 3,500 metres long by 400 to 500
metres wide; and other areas with potential copper and gold mineralization.
Initial results from this program are expected in November.
The company has also mobilized a reverse circulation drill rig to Eritrea in
order to begin a 4,000 metre drill program at the Gupo Gold deposit and a
1,000 metre program at the new Medrizien gold target within the next four to
five weeks.
The objective of the reverse circulation drill project is to upgrade the
existing gold resource at Grupo, currently 189,000 ounces contained in
1,965,000 tonnes at an average grade of 2.99g/t gold, from an inferred to an
indicated category. It is also hoping to make a new gold discovery at
Medrizien to provide future feed for the northern area of the Asmara
project.
In September, the company announced that it was planning to raise up to $10
million by way of a non-brokered private placement to finance the Asmara
project.
Sunridge agreed to issue up to 20 million units at a price of $0.50 per
unit. Each unit consists of one common share and one half of one common
share purchase warrant.
The company's shares have motored in the last few days by more than 20%,
trading at $0.82 at close on Wednesday to $1.01 on Friday as of 1:00pm ET.
Sunridge is 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. It has approximately 76
million shares outstanding and approximately $4.5 million in cash.
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