Sunridge Gold Corp TSXV:SGC announced results from its Asmara Project in Eritrea. Highlights include 3.96 g/t gold, 116.37 g/t silver, 1.97% copper and 10.36% zinc over 16 metres, 1.88 g/t gold, 65.39 g/t silver, 1.23% copper and 13.52% zinc over 26.1 metres, 1.59 g/t gold, 50.87 g/t silver, 0.68% copper and 3.45% zinc over 28.6 metres and 3.25 g/t gold, 111.79 g/t silver, 3.79% copper and 4.04% zinc over 10.8 metres.
VP Business Development Greg Davis tells ResourceClips.com, “Right now a lot of our focus is on the prefeasibility study being conducted on the Asmara North projects. These include Emba Derho, Gupo Gold and Adi Nefas. Adi Nefas was the one we announced today. It’s been some time since we had news on Adi Nefas. The drill program that we recently did there, and announced today, was part of the prefeasibility study. It had several objectives: one was for metallurgical testing, two was for geotechnical work—we drilled where the planned portal is going to be, and also we tested the hanging wall—and three was to see if we could expand it. We put a few holes in to expand it laterally and to depth, and we were successful in that. It’s a nice reminder for people of what a high-quality rock this is. Extremely high value. It will definitely be a significant sweetener in terms of the economics of the ongoing prefeasibility study.
“We’re very happy with these results. They are, once again, incredibly high results, especially if you add up the values of the zinc, gold, copper and silver in the rock.
We’re very happy with these results. They are, once again, incredibly high results, especially if you add up the values of the zinc, gold, copper and silver in the rock—Greg Davis
“In terms of production,” Davis continues, “the lead project is Debarwa which is in the southern part of the project. We’ll be wrapping up a full bankable feasibility there at the end of this year and applying for mining permits early next year. It has a gold-oxide cap where production will start, followed by the DSO zone—super high-grade material, 117,000 tonnes averaging 16% copper, 3 grams per tonne gold and 77 g/t silver. We’ll look at direct shipping that.
“Jumping back to the north: this prefeasibility study on the northern projects will be wrapped up early next year, and it’s our plan to plow right into full bankable feasibility. That won’t be a big step, as the prefeasibility study is fairly extensive. So we expect to complete full bankable feasibility on [Asmara's] northern projects in 3Q or 4Q 2012.
“Probably 80% of the property remains unexplored. We started there in 2003-2004, and we’ve drilled over 200,000 metres. But we’ve had success—we’ve focused on drilling out Debarwa, Adi Nefas, Gupo and Emba Derho. We’ve been pushing those projects ahead, but we also have a lot of exploration to go. We have numerous, high-priority targets. The high-priority targets are defined by gravity anomalies, coincident with EM conductors, coincident with strong zinc, copper and precious metals in the soils. On top of that there’s the gossan outcrop in many cases—they poke out of the ground. It’s the same kind of signature we saw at Bisha back in the early days—Nevsun Resources’ project—and the known deposits on our Asmara Project. So we do expect to make more discoveries.
“The exploration schedule is coming together. We will likely be exploration drilling again in the next month on our project. We’re still formulating exactly how much we want to spend by the end of the year, but it looks like up to $2 million on exploration drilling.
“Sunridge is tremendously undervalued,” Davis concludes. “That’s been a symptom of working in Eritrea. It’s truly a dream to operate in Eritrea, but you’re always fighting the perception in the market. Once again, Nevsun’s now in production—this demonstrates the ease of working in Eritrea. We think there’s definitely going to be a re-evaluation of all companies, including us.”
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VP of Business Development
by Greg Klein and Ted Niles