Sunridge Gold Corp.(SGC/TSX.V) is a base and precious metals junior development and exploration company focused on advancing four NI 43-101 deposits through development to production and increasing resources through exploration drilling at several high priority drill targets at its Asmara Project, Eritrea. Following a recent private placement and exploration agreement with Antofagasta Minerals S.A., Sunridge is well funded to explore and develop their 100% owned deposits at he same time that Antofagasta and Sunridge together conduct drilling at other targets with the potential for large discoveries. With significant assets and potential for more, Sunridge is a junior to watch.
Sunridge Gold to start prefeasibility studies for Eritrea properties
Sunridge Gold Corp (TSX-V:SGC) has received the final report for the ‘Strategic Production Study’ for the Asmara copper-zinc-gold-silver project in Eritrea, which has examined the metallurgical characteristics of the company’s four resources, as well as a high-level economic evaluation which looked at the possibilities of combining the development of the deposits.
Due to the report’s positive conclusions, the company intends to start prefeasibility studies for Emba Derho, Adi Nefas and Debarwa in the near future.
The report was prepared by PEG Mining Consultants (PEG), and its initial focus was to examine the possibility of fast-tracking a high-grade portion of the copper supergene zone at the Debarwa deposit into production. Secondly, the study examined the concept of the combined development of the Debarwa deposit and the three properties to the north - Emba Derho, Adi Nefas and Gupo - which are located within approximately 7km of each other.
PEG has concluded that “it is possible to selectively mine a high-grade (+15% copper) portion of the Debarwa copper supergene zone for direct shipping to a smelter thereby eliminating the need for a process plant facility early in the mine life.”
And in reference to the combination PEG said: “recent mineralogy and metallurgical test work indicates that copper and zinc mineralization from the Emba Derho, Debarwa and Adi Nefas deposits all respond to extraction ... in a similar manner and therefore co-processing these materials in a single flotation process plant is deemed feasible.”
In order to confirm the consultant’s conclusions, PEG recommended that Sunrise carry out further tests on blended material.
Three of the four mineral deposits - excludes Gupo gold - contain Indicated resources of 1.28bn lbs of copper, 2.5bn lbs of zinc, 1.05Moz (million ounces) of gold and 31.8Moz of silver. The Gupo gold deposit contains 189,000oz of gold in the Inferred category.
After the initial selective mining period, PEG stated that “a flotation plant and further mine development would be required to exploit the remaining transition, supergene and primary zones at Debarwa. This longer term (9-year) production scenario further improves the economics of the deposit”.
PEG’s mining engineers concluded that underground mining using a ramp would be the preferred method of access to Debarwa’s mineralized material, rather than using the existing vertical shaft.
In terms of processing, PEG concluded that the oxide gold mineralization from all deposits respond well to recovery by cyanidation, therefore the material could be co-processed in a single central cyanide leach plant. Furthermore, PEG concluded that the development of a central process facility for both base metals and gold at Emba Derho will provide significant economic benefits for the other three deposits.
The consultant identified capital cost synergies for process plant equipment, infrastructure and tailings disposal facilities.
“In PEG's opinion the inclusion of a Dense Media Separation (DMS) ahead of the Emba Derho process plant represents a significant opportunity to improve project economics”, however more detailed examination is recommended for the prefeasibility study.
