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Sunridge Gold Completes Initial Resource Estimate For Adi Rassi Copper-Gold Deposit, Asmara Project, Eritrea

Sunridge Gold Corp. (“Sunridge” or the “Company”) (TSX.V:SGC; OTCQX:SGCNF) reports that it has completed an initial independent NI43-101 and JORC compliant mineral resource estimate for the Adi Rassi copper-gold deposit located on the Asmara project, Eritrea.

HIGHLIGHTS:

  • Inferred Mineral Resource of 15.77 million tonnes with an average grade of 0.54% copper and 0.33 g/t gold
  • Contained metal = 189,060,000 pounds of copper and 167,000 ounces of gold
  • The resources area is open for expansion in most directions
  • Less than 10 km from Debarwa deposit and paved road access
  • Positive initial metallurgical results
  • Further expansion drilling planned in 2013

Adi Rassi is the fifth mineral resource defined by Sunridge on the Asmara Project. On May 2, 2012, Sunridge announced the results of a prefeasibility study (“PFS”) on the other four deposits (Adi Nefas, Emba Derho, Gupo and Debarwa) that concluded that the optimum economic scenario is to construct a single centralized processing plant near the Emba Derho deposit. A feasibility study is now underway and is scheduled for completion in April 2013.

Initial results from ongoing testwork by Blue Coast Research suggest that copper, gold and silver can be successfully recovered from the mineralized material at Adi Rassi by standard flotation methods, which is compatible with the recovery processes with the other deposits on the Asmara project.

“The defining of a fifth deposit by Sunridge continues to show the prolific nature of the Asmara Project area. We are pleased with this initial mineral resource estimate for the Adi Rassi deposit based on just twenty-two new drill holes by Sunridge and believe that further drilling will significantly expand and upgrade the mineralization.” states Michael Hopley, President and CEO of Sunridge. “Metallurgical test work continues, but initial results show that the copper and gold can be successfully recovered by standard flotation methods compatible with the process to be used in the mine plan currently being examined in the feasibility study”.

 
Adi Rassi Mineral Resource Statement - David G. Thomas

P.Geo., of Fladgate Exploration Consulting Corp. (“Fladgate”)

Effective Date December 1, 2012

            Grades       Contained Metal
Tonnes Copper       Gold       Silver Copper       Gold       Silver

('000

 

('000

Inferred Mineral Resource       ('000s)       (%)       (g/t)       (g/t)      

lbs)

     

('000oz)

     

oz)

Open Pit (0.21% Cu Eq cut-off) 14,940 0.54 0.30 1.5 176,640 143 721
Underground (0.72% Cu Eq cut-off)       840       0.67       0.89       1.5       12,430       24       40
Total       15,770       0.54       0.33       1.5       189,060       167       761
*Cut-off calculation is based on prices and costs provided by Sunridge. The open pit Inferred mineral resource is reported at a copper equivalent cut-off of 0.21% within a Lerchs-Grossman resource pit shell optimized on copper, gold and silver grades with metal prices of $3.75/lb of copper, $1,700/oz gold and $32/oz silver. Assumed metallurgical recoveries are 95%, 70% and 70% for copper, gold and silver respectively. Mining costs are assumed to be $1.75 /t. Underground Inferred mineral resources are reported at a copper equivalent cut-off of 0.72% within a grade shell based upon an underground mining cost of $40/t. The contained metal figures shown are in situ. No assurance can be given that the estimated quantities will be produced. All figures have been rounded to reflect accuracy and to comply with securities regulatory requirements. Summations within the tables may not agree due to rounding. Fladgate undertook quality assurance and quality control studies on the mineral resource data for the Adi Rassi project. Fladgate concludes that the collar, survey, assay and lithology data are adequate to support mineral resource estimation. CIM Definition Standards describe that Mineral Resource Estimates are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resource will be upgraded to Indicated or Measured mineral resources categories or that it will be converted into Mineral Reserve until the required studies have been completed. The quality and grade estimates of reported Inferred mineral resources are uncertain in nature and there has been insufficient exploration work to define the Inferred mineral resources as Indicated and Measured mineral resources and it is uncertain if further exploration work will result in upgrading them to Indicated or Measured mineral resource categories.

Adi Rassi Geologic Background

The Adi Rassi mineralization is distinctly different to Sunridge’s four other deposits on the Asmara Project; three of the deposits are volcanogenic-massive sulphide (VMS) deposits (Emba Derho, Adi Nefas and Debarwa) or remobilized gold only (Gupo Gold). The mineralization at Adi Rassi is considered to be remobilized copper and gold from a distal source, possibly unidentified buried VMS mineralization.

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