Sunridge Gold Corp. (the “Company”) (SGC:TSX.V/SGCNF:OTCQX) is pleased provide an update on the Asmara Project Feasibility Study (the “Study”) being conducted on the four deposits that make up the Asmara Project, Eritrea. Sunridge recently announced the closing of a $10,831,690 financing which enables the Company and consultants to maintain work on the Study at full-speed and complete the work on schedule.
A summary of significant points are as follows:
- The Study was started in April 2012 just prior to the publication of a positive Asmara Project prefeasibility study (PFS) that showed that all four deposits could be processed in a single central processing plant;
- The Study is on schedule to be completed in the second quarter of 2013;
- Based on new metallurgical testwork the Study will include early mining of the Direct Shipping Ore (“DSO”) from Debarwa and early heap-leaching of the surface gold material from the project;
- Based on the above, cash-flow is expected a year earlier (2015) than presented in the PFS; and
- Based on the new operating scenarios, initial capital costs are expected to be reduced and overall economics enhanced in the Study compared to the PFS.
On May 2, 2012 Sunridge announced the results of a prefeasibility study (“PFS”) on the Asmara Project that concluded that the four deposits of the Asmara Project could be successfully processed in a single centralized processing plant near the Emba Derho deposit and that this was the optimum economic scenario. The mining and processing plant would produce a total 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 economic analysis in the PFS, using 5-year average metal prices and a 10% discount rate, showed the project to have a pre-tax net present value of $555 million and an internal rate of return of 27%.