Following the completion of the Study, Sunridge will complete a social and environmental impact assessment (“SEIA”) report in the second quarter of 2013 and will then apply for a mining license.
Negotiations with Eritrean National Mining Corporation (“ENAMCO”)
On July 4, 2012, ENAMCO exercised its option to purchase an additional 30% of the Asmara Project from the Company. These negotiations continue and the Company issued an update news release on December 17, 2012 which stated that talks have been progressing between Sunridge and ENAMCO within the framework of the mining code of the country as summarized as follows:
The Adi Rassi Copper-Gold Deposit
- The 30% participating interest in the Asmara Project to be purchased by ENAMCO 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.
- ENAMCO's 10% non-assessable interest will carried two-thirds by Sunridge and one-third by ENAMCO.
- The price and terms of the purchase of the participating interest by ENAMCO are currently being negotiated.
- Once negotiations are concluded, ENAMCO will contribute one-third of all development costs as they are incurred, as well as any other ongoing expenditure on the project, including exploration.
On December 4, 2012, Sunridge announced an initial, independent Inferred resource estimate on the Adi Rassi copper-gold deposit. Mineralization at Adi Rassi is distinctly different to Sunridge’s four other deposits on the Asmara Project and is considered to be remobilized copper and gold from a distal source, possibly an as yet unidentified buried VMS mineralization and is associated with a major shear zone that trends northeast for over 3 kilometres and dips steeply to the west. Mineralization has been defined for over a 450 metre north-northwest oriented strike length, 40 to 100 metres in width and to a vertical depth of 360 metres. The mineralized zone dips steeply to the west and is off-set by an east-west oriented fault. The zone remains open in depth, to the north and possibly to the south; additional exploration potential exists along the 3 kilometre length of the host shear zone. A program of expansion drilling, trenching and local mapping and sampling is planned for 2013.