By Suridge Gold,
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 4th 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. - - - - - - - - - - -