Sunridge Gold Corp. (the “Company” or “Sunridge”) (SGC:TSX.V/SGCNF:OTCQX) is pleased to provide an outlook on the Company’s planned activities for 2013. The Company’s primary focus for early 2013 is to complete the feasibility study (the “Study”) and apply for a mining license on the four mineral deposits that make up the Asmara Project in Eritrea. The Company also plans to continue exploration work on its fifth deposit the Adi Rassi copper-gold deposit where initial resources were announced on December 4, 2012 as well as to conduct exploration work on additional targets on the Asmara Project.
Asmara Project Feasibility Study
The Asmara Project comprises four mineral deposits; three copper, zinc, gold and silver volcanogenic-massive-sulphide (“VMS”) deposits as well as a near-surface gold deposit. The Study on these deposits started in April 2012 and remains on schedule to be completed in the second quarter of 2013. A positive Asmara Project Prefeasibility Study (“PFS”) was completed in May 2012 which studied an integrated mining operation for all four deposits with a central mill located at the large Emba Derho Deposit. The PFS demonstrated robust economics, with a pre-tax net present value (“NPV”) of $555 million with a 10% discount applied ($1.642 billion NPV with zero discount) and an internal rate of return (“IRR”) of 27%.
Recent work on the Study has identified significant improvements over the PFS which should result in earlier cash-flow, as well as possible lower initial capital costs and stronger economics. A summary of significant points are as follows:
- The Study will include early mining of the copper-gold direct shipping ore (“DSO”) from Debarwa and early heap-leaching of the surface gold material from the project;
- Cash-flow is expected a year earlier (2015) than presented in the PFS;
- Initial capital costs are expected to be reduced and overall economics enhanced in the Study compared to the PFS;
- Full production at 4 million tonnes per year would be reached approximately 2 years after commencement of mining activities. Production rates will be similar to those outlined in the PFS with an annual average of 70 million pounds (31,750 tonnes) of copper, 140 million pounds (63,500 tonnes) of zinc, 31,000 ounces of gold and 997,000 ounces of silver to be produced over the first eight years of the mine life.
The Asmara Project area is made up of four distinct deposits; 1) the Emba Derho copper-zinc-gold-silver VMS deposit which can be mined by open-pit methods, 2) the Adi Nefas zinc-gold-copper VMS deposit, located approximately 6 kilometres away from Emba Derho – to be mined by underground methods, 3) the Gupo gold deposit located approximately 8 kilometres from Emba Derho which can be mined by open-pit methods and, 4) the Debarwa copper-gold VMS deposit, located approximately 40 kilometres south of Emba Derho which will also be mined by open-pit methods.