Sunridge Gold Corp. (the “Company” or “Sunridge”) (SGC:TSX.V/SGCNF:OTCQX) is pleased to announce that the Eritrean government through the Eritrean National Mining Corporation (“ENAMCO”) has informed the Company that ENAMCO intends to acquire a 30% paid participating interest in the Company’s Asmara Project in Eritrea. This 30% interest is in addition to ENAMCO’s existing right to receive a 10% non-assessable interest that will be carried to production by the participating partners. The terms of the acquisition of the participating interest by ENAMCO have not yet been established and will be determined by negotiation.
Michael Hopley, President and CEO of Sunridge commented, “We are very pleased that ENAMCO has made the early decision to purchase a participating interest and become our partner to bring the Asmara Project into production. This kind of support from the government, for the development of what will be the largest mine in Eritrea, is a major validation of the project and will certainly help with completion of the next steps towards production – completion of the feasibility study, mine permitting and construction financing. We look forward to working with ENAMCO to bring the Asmara Project into production as soon as possible for the mutual benefit of Sunridge and the people of Eritrea”.
The Asmara Project consists of four mineral deposits, the Emba Derho, Debarwa and Adi Nefas copper-zinc-gold and silver deposits and the Gupo gold deposit all located within 40 kilometres of the capital city of Asmara. The results of a preliminary feasibility study (the “Study”) that considered all deposits being processed at a central mill was announced on May 2, 2012. The Study showed production from the Asmara Project of 365,000 tonnes of copper, 812,000 tonnes of zinc, 415,000 ounces of gold and 11 million ounces of silver over a 15.25 year mine life. The Study also demonstrated a pre-tax net present value of $555 million at a 10% discount rate and an estimated initial capital cost of $489 million. Sunridge is currently completing a feasibility study on the Asmara Project which is planned for completion in 2013, subject to financing. Application for a mining license and permitting will follow the completion of the feasibility study and the social and environmental impact assessment study.