logo-loader

Sunridge Gold Corp. - Begins New Drill Programme at Asmara Project, Eritrea

Published: 08:26 24 Sep 2009 AEST

no_picture_pai

On the heels of its strategic partnership with Antofagasta Minerals S.A. ("Antofagasta"), Sunridge announced the commencement of a new drill programme at the Asmara Project, Eritrea. Drilling will focus on expanding the known resources within the "Development Areas" that contain the four 100% owned deposits, Emba Derho, Debarwa, Adi Nefas and Gupo Gold.

According to the agreement, Antofagasta will fund US$10 million of exploration work over a 5-year period to earn a 60% interest in part of the Company's Asmara Project in Eritrea. Antofagasta is also expected to purchase common shares of Sunridge in a non-brokered private placement for proceeds of US$5 million. Antofagasta will become Sunridge's largest shareholder owning an approximate 18% interest in Sunridge.

Drilling has commenced at the Debarwa high-grade copper-gold-zinc volcanogenic massive sulphide (VMS) project. Approximately 2,000 metres is planned for this phase of drilling which will test several strong geological and geophysical anomalies that appear to be extensions of the known mineralized zones. The objective of this drill programme is to expand the existing resource, particularly the high-grade copper supergene zone. This zone has an average grade of 5.36% copper using a 1% copper cut-off, containing 158 million pounds of copper in the indicated category. The deep primary zone at Debarwa, which is open at depth, has an average grade of 2.53% copper with 3.23 % zinc in the Indicated category using a 1% copper cut-off and contains an additional 39 million pounds of copper and 49.8 million pounds of zinc.

The drill targets at Debarwa consist of strong geophysical anomalies which have been identified by gravity and audio-magneto telluric (AMT) surveys as well as detailed mapping and sampling over the last year. Drilling at Debarwa will focus on a geological and geophysical target outlined over a continuous 1.5 km in strike length located only 150 to 200 metres east of and parallel to the Debarwa Main Deposit. Management believes this could represent an eastern limb of the main deposit.

Upon completion of drilling at Debarwa, the programme will focus on possible extensions to the large Emba Derho copper-zinc-gold VMS Deposit. A positive Preliminary Economic Assessment Study on the Emba Derho deposit was completed in June 2009. The drill programme will continue on to the Gupo Gold Deposit to better define that resource.

Busy several months await at Sunridge. As investors recognise Eritrea’s potential as a mining destination, the market is expected to re-rate companies such as Sunridge.

About Sunridge Gold Corp
Sunridge Gold Corp. 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. Sunridge announced the signing of a Memorandum of Understanding with Antofagasta Minerals S.A. to form a strategic partnership whereby Antofagasta will fund US$10,000,000 of exploration work over a five year period on the "Exploration Areas" of the Asmara project to earn up to a 75% interest in these areas and also invest US$5,000,000 in a non-brokered private placement. Prior to the completion of the above private placement, the Company has 62.6 million shares outstanding and approximately $4.5 million in cash.

Australian Strategic Materials signs US$600 million LoI

Rowena Smith, CEO and managing director of Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF), joins Jonathan Jackson in the Proactive studio to discuss the company’ s Dubbo Project, in Central West New South Wales. This project aims to extract and process critical minerals and rare earth...

4 hours, 27 minutes ago