Eritrea Awards Three Mining Licenses to Sunridge Gold’s Asmara Project

Sunridge received the mining licenses
The wait is over. Sunridge received the mining licenses for its Asmara project. Chinese LiuGong agreed to deliver some of the heavy duty machineries required to commence commercial production in Q3 2016 (i.e. between July – September 2016 )

By Sunridge Gold,

Sunridge Gold Corp. is pleased to announce that the Eritrean Ministry of Energy and Mines has awarded three mining licenses to the Asmara Mining Share Company (AMSC), a joint-venture company of which Sunridge owns 60% and the Eritrean National Mining Corporation owns 40%.

These licenses cover a total area of 19.3 square km and cover the four advanced projects (Emba Derho, Adi Nefas, Gupo Gold and Debarwa) on the Asmara copper-zinc-gold project that were included in a feasibility study completed by Sunridge in May 2013.

An additional 83.12 square km of exploration licenses will be retained by AMSC which include the Adi Rassi copper-gold deposit and the Kodadu gold deposit.

The award of the mining licenses follows the signing of a mining agreement between AMSC and the Minister of Energy and Mines, His Excellency, General Sebhat Ephrem, representing the State of Eritrea on September 11, 2015.

“The acquisition of the mining licenses is another important step forward for AMSC and Sunridge and we are grateful for the continued support of the Government of Eritrea” said Sunridge President and CEO Michael Hopley.

“We now remain focused on our plans to finalize financing arrangements for Phase 1A – the mining and shipping the high-grade copper and gold direct shipping ore from Debarwa”.

In Phase 1A, which is expected to start commercial production in Q3 of 2016 the high-grade copper direct shipping ore (DSO) will be mined from the Debarwa deposit by open-pit methods, crushed and loaded into containers and transported 140 km to the port facility at Massawa for shipping and sale to a smelter.