This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Sunridge Gold Files Technical Report For Feasibility Study On The Asmara Project, Eritrea

Stocks in this article: SGC

Sunridge Gold Corp. (the “Company” or “Sunridge”) (SGC:TSX.V/SGCNF:OTCQX) has filed a National Instrument 43-101 compliant technical report regarding the independent feasibility study (the “Study”) for its Asmara Project in Eritrea as announced May 16, 2013 and amended May 28, 2013.

The Study demonstrates that the mining of all four advanced deposits that make up the Asmara Project (Emba Derho, Adi Nefas, Gupo Gold and Debarwa) and processing of the ore near the large Emba Derho deposit is economically robust with a NPV of $837 million. The Study outlines a three-phase staged start-up mining plan which would initiate production almost one year earlier than was envisaged in the prefeasibility study. This earlier cash-flow, combined with capital cost reductions, reduces the initial capital requirements to be financed by over $130 million.

As a result of the positive outcome of the Study, Sunridge will continue work towards bringing the Asmara project into production as soon as possible, by completing required environmental studies, applying for the mining license, arranging debt financing, commencing detailed engineering work and hiring new key employees. Management estimates that initial production on the Asmara Project will commence in mid-2015.

Base Case Highlights (all $ equals US dollars):

  • NPV of $692 million at a 10% discount (pre-tax) NPV of $345 million at a 10% discount (post-tax)
  • NPV of $837 million at an 8% discount (pre-tax) NPV of $443 million at an 8% discount (post-tax)
  • Internal rate of return (IRR) – pre-tax 34%, post-tax 27%
  • Payback – pre-tax 4.1 production years, post-tax 4.6 years
  • Base Case metal prices used - $3.25/lb copper, $1.00/lb zinc, $1,400/oz gold, $25.00/oz silver
  • Initial capital cost Phase IA & IB Direct Shipping Copper Ore & Heap-Leach Gold - $46 million
  • Initial Phase II & III flotation plant capital cost estimate - $357 million
  • Peak Equity Funding - $354 million
  • On site operating costs - $29.42 per tonne average through life of mine
  • Average annual metal production over the first 8 years-
    • 65 million pounds (29,000 tonnes) of copper
    • 184 million pounds (83,000 tonnes) of zinc
    • 42,000 ounces of gold
    • 1.0 million ounces of silver
  • Total metal production –
    • 841 million pounds (381,000 tonnes) of copper
    • 1,874 million pounds (850,000 tonnes) of zinc
    • 436,000 ounces of gold
    • 11 million ounces of silver
  • Life of Mine – 1 construction year, 15.3 production years

The report is titled “Asmara Project Feasibility Study” and was completed by lead engineering company SENET (Pty) Ltd. under the direction of David Chambers, P.Eng (MBA) and approved by Neil Senior, P.Eng. with support from Snowden Group Inc. on mine design and mine planning and work by Knight Piésold Ltd. on water and waste management. Blue Coast Metallurgy Ltd. directed metallurgical test-work. The report has an effective date of May 16, 2013.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs