Sunridge Gold Corp. (the “Company”) (SGC:TSX.V/SGCNF:OTCQX) is pleased to provide an update of activities on the Asmara Project in Eritrea. The Asmara Project feasibility study (the “Study”) was completed in May and demonstrated that the mining of 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 Net Present Value (“NPV”) of $692 million (using a 10% discount rate) and with an internal rate of return (“IRR”) of 34%. The Study outlines a three-phase start-up mining operation which would initiate production in 2015 starting with direct shipping ore production and heap-leaching of near surface gold, followed by supergene copper production, then zinc and copper at full 4Mtpa production.
Recent activity has been directed towards moving the project closer to development and can be summarized as follows:
- A Social and Environmental Impact Assessment will be completed and ready to submit next month in order to make application to the government for a mining license;
- Negotiations with Eritrean National Mining Corporation (“ENAMCO”) to determine the price they will pay to purchase 30% of the project from the Company are ongoing;
- Discussions have been initiated with potential debt financing lenders. In addition, Micon International Limited has been working to complete an independent "due diligence" review of the project for potential lenders which will be completed later this year;
- Commenced the selection of an engineering group to complete detailed engineering work on the project by dissemination of “expression of interest” document;
- Hiring new key employees. A new key employee has been hired to start work on the project in the 4 th quarter of this year and advanced talks with other potential employees are in progress;
- Continuing exploration activities on its “pipeline deposits” on the Asmara Project; recently initial resource estimates were announced for two new deposits Adi Rassi, a large copper-gold deposit, and Kodadu a surface gold deposit;
- Interest from major companies. The Company is currently in discussions with a number of interested parties that could lead to a potential acquisition of the Company or some or all of the Asmara Project. There can be no assurance that any transaction will occur, or as to the timing, structure or terms of any transaction.
Sunridge is a mineral exploration and development company focused on the acquisition, exploration, discovery and development of base and precious metal projects on the Asmara Project in Eritrea and exploration properties in Madagascar. Sunridge currently has approximately 175 million shares outstanding and trades on the TSX Venture Exchange under the symbol SGC. For additional information on the Company and its projects please view the slide show on our website at
or call Greg Davis at the number listed below.
This news release contains forward-looking statements that are based on the Company’s current expectations and estimates. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “suggest”, “indicate” and other similar words or statements that certain events or conditions “may” or “will” occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Forward looking statements may include the timing and success of any application for a mining license or of debt financing, completion of negotiations with ENAMCO, and the likelihood of receiving acquisition proposals.
Risk and uncertain factors include, among others: the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans to continue to be refined; possible variations in ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, a mining license, or debt financing, uncertainties in negotiating commercial arrangements with government entities; and fluctuations in metal prices.
There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended.
Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
| SUNRIDGE GOLD CORP.
| “Michael Hopley”
|| For further information contact:
| Michael Hopley, President and Chief Executive Officer
|| Greg Davis, VP Business Development
|| Email: email@example.com Tel: 604-688-1263 (direct)
| Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.