Date: Wed, 7 Dec 2011 23:16:51 +0100
Sunridge Gold unveils Eritrea, Madagascar drilling updates
Tue 11:49 am by
<http://www.proactiveinvestors.com/pages/the_team#Joyanta%20Acharjee>
Joyanta Acharjee
Wednesday, December 07, 2011
<http://www.proactiveinvestors.com/companies/overview/650/Sunridge+Gold>
Sunridge Gold (
<http://www.proactiveinvestors.com/companies/overview/650/sunridge-gold--065
0.html> CVE:SGC)(OTCQX:SGCNF) Tuesday announced assay results from its
drilling programs at the Gupo gold deposit in Eritrea, East Africa and from
the Besakoa project in Madagascar.
The mineral exploration and development company said assay results from an
additional 20 drill holes from a recently completed reverse circulation
drill program at the Gupo gold deposit generally confirmed the location and
grade of gold mineralization close to previous holes, down to depths of
approximately 20 to 130 metres in the northern and central part of the
deposit.
Among the highlights, drill hole GG-084-R encountered 4.13 grams per tonne
(g/t) gold over 12 metres and 5.19 g/t gold over 7 metres; drill hole
GG-096-R returned 6.09 g/t gold over 30 metres; drill hole GG-113-R
intersected 3.66 g/t gold over 13 metres and drill hole GG-114-R encountered
6.20 g/t gold over 19 metres.
Sunridge's drilling program on Asmara North in Eritrea, which includes the
Emba Derho, Adi Nefas, and Gupo Gold deposits, consists of 90 drill holes
totaling approximately 7,000 metres.
The program was designed to expand and upgrade the current inferred resource
at Gupo to the measured and indicated categories as part of the
pre-feasibility study on Asmara North.
In addition, drill hole GG-114-R significantly extended strong gold
mineralization (19 metres averaging 6.20 g/t gold) to approximately 130
metres from surface. Additional results are expected in about two weeks.
Gold mineralization at Gupo extends over a strike length of approximately
1.6 kilometres and is associated with stockwork quartz veins and a sericite
alteration halo controlled by a shear zone 10 to 20 metres in width, the
company said.
The resource is close to surface, and drilling has shown mineralization to
extend at least to 130 metres vertical depth.
The current inferred resource estimate for Gupo shows a resource of 1.97
million tonnes grading 2.99 g/t or 189,000 ounces.
In a research note, Ocean Equities analyst Christopher Welch said the latest
results support an upgraded resource when the prefeasability study (PFS) on
the Northern Asmara assets are due in the latter part of the first quarter
of 2012.
Welch said the PFS is one of two very important milestones for Sunridge.
A bankable feasibility study on the Debarwa deposit in Eritrea is also due
in the early part of the first quarter of next year. With a DSO zone - an
area of extremely high grade copper with gold - of 16 percent copper,
Debarwa will be able to be brought into production quickly.
Sunridge has recently completed 24 shallow reverse-circulation drill holes
targeting parts of the surface gold oxide zone that are not included in the
current resource at the Debarwa copper-gold deposit. Results are expected in
approximately six to eight weeks.
Ocean Equities' Welch said: "The company has been discounted recently with
the uncertainty surrounding the UN sanctions. With no restriction on
investment in the mining industry we expect Sunridge's share price to rally
as it approaches completion of the pending feasibility studies."
The UN Security Council on Monday expanded sanctions against Eritrea for
continuing to provide support to Islamist militants in neighbouring Somalia.
Welch said, however, that the feasibility studies will produce financial
metrics and enable appropriate values to be assigned to Sunridge's portfolio
of assets.
Sunridge also announced Tuesday assay results from its recent 5,000 metre
diamond drill program on the Besakoa project in Madagascar.
The drill program tested a number of volcanogenic-massive-sulphide style
targets which were defined using geophysical and soil geochemical surveys,
geological and structural mapping and gossan prospecting.
Results were generally disappointing, Sunridge said, although several of the
holes intercepted semi-massive sulphide mineralization and had anomalous
base and precious metal values.
Among the highlights, Sunridge said that hole BSK-01 encountered 0.43 g/t
gold and 16 g/t silver over 15.31 metres, while hole BSK-32 intersected 0.34
g/t gold and 2.50 g/t silver over three metres.
Sunridge shares were flat at $0.34 Tuesday morning.
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