As reported on October 22, 2013, Sunridge Gold Corp. (the “Company” or “Sunridge”) (SGC:TSX.V/SGCNF:OTCQX) recently closed a $5.75 million private placement financing and as a result has increased activity on the Asmara Project, Eritrea. All activities are focused on bringing the project into production in 2015.
“Sunridge continues to enhance the value of the Asmara Project by completing the social & environmental impact assessment study, making an application to the government for the mining license, completing negotiations with ENAMCO on their purchase of the 30% of the project, selecting an engineering company to start detailed engineering work as well as securing debt financing for the project,” stated Sunridge CEO and President Michael Hopley. “Completing the latest financing enables Sunridge to achieve all these value-added goals before the end of the year.”
The Company’s current activities are summarized as follows:
- An application for a mining license for the Asmara Project will be submitted once the Social and Environmental Impact Assessment is complete in November 2013;
- Negotiations continue with Eritrean National Mining Corporation (“ENAMCO”) to determine the price they will pay to purchase 30% of the project from the Company; the Company sees this as a very important step and is pleased with progress made in recent discussions;
- Discussions continue with potential debt financing lenders. Micon International Limited has been working to complete an independent “due diligence” review of the project for potential lenders which will be completed before year end;
- The “expression of interest” documents were received from eligible engineering groups. The successful candidates will prepare “requests for proposal” (RFP) on engineering, procurement and construction management (EPCM) for Q1 2014;
- An operations manager has recently been hired to start work on the Asmara Project. Mr. Chris Attwood was Mine Manager at the Bisha Mine for over 2 years. Mr. Attwood will be an integral part of the Sunridge team moving forward with project development;
- The Company continues 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.
The Asmara Project feasibility study (the “Study”) was completed last May and demonstrated that the mining of four of the six deposits that make up the Asmara Project (Emba Derho, Adi Nefas, Gupo Gold and Debarwa) and processing of the ore at a central location 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 high-grade copper and gold direct shipping ore production from the Debarwa deposit and heap-leaching of near surface gold, followed by supergene copper production, then zinc and copper at a full production rate of 4 million tonnes per year.