PRESS RELEASE, Wed Dec 1, 2010
Sunridge Gold Corp. (SGC/TSX.V) is pleased to provide an update on the commencement of feasibility work at the high grade Debarwa copper-gold-zinc VMS Deposit and plans for exploration and definition drilling on other targets on the Asmara Project, Eritrea.
DEBARWA FEASIBILITY STUDY: As announced on October 21, 2010 Sunridge has appointed the engineering company Senet (Pty) Ltd to complete a full feasibility study on the Debarwa deposit.
As part of the ongoing feasibility study work for the Debarwa deposit a 4,000 meter diamond drill program has commenced to define in greater detail some parts of the deposit. The results of this drilling will be used for an updated resource estimate to be completed in the first quarter of 2011 as part of the feasibility study. Two additional drills are scheduled to arrive at Debarwa within the next ten days and will be used for gathering geotechnical and hydrological study data for the feasibility study before moving to other targets for exploration drilling.
The initial Debarwa feasibility study meeting was held in Asmara last week with representatives from the various companies involved in the study including Senet, AMC Consultants, Knight Piesold and Blue Coast Metallurgy to discuss many aspects of the feasibility study including tailings facility design, water and hydrological studies, metallurgy, geological modeling and resource estimates as well as ongoing baseline environmental studies and social engagement programs.
The feasibility study will consider a standalone process plant at Debarwa using flotation for the recovery of the base and precious metals and will study various mining options over a forecast life of mine of approximately 9 years. The study will also investigate the option of mining and direct shipping a high grade portion (greater than 15% copper) of the enriched copper supergene zone to generate early cash flow and enhance the economics of the deposit. The completion of this report is expected in the third quarter of 2011.
Following completion of the drill program at Debarwa, two drill rigs will be mobilized to the Adi Nefas, Gupo Gold and Medrizien Projects. Drilling at Adi Nefas and Gupo will focus on both resource definition and expansion while drilling at Medrizien will test a large gold bearing zone with the potential for a new discovery.
The gold mineralization in the Medrizien Gold prospect varies in thickness from a few meters up to 25 meters over a 3 ½ kilometer strike length and occurs in a stockwork of quartz veins associated with sulphides. A total of 65 rock grab samples were taken over the length of the prospect of which 57 samples were from the surface showing of mineralized quartz veins and altered halo of volcanic rocks. The results showed 10 samples with assays over 1 g/t gold with these sample values averaging 12.13 g/t gold. The 8 rock samples taken from the old underground workings range from 0.14 g/t up to a value of 319 g/t with an average of 51.32 g/t gold.
Michael J. Hopley the President and Chief Executive Officer of Sunridge is the Qualified Person for Sunridge and he is the person responsible for preparation of the technical information contained in this news release.
Sunridge is a mineral exploration and development company focused on the exploration, discovery and development of base and precious metal projects on the Asmara Project in Eritrea and exploration properties in Madagascar. Sunridge has 117 million shares outstanding with approximately $28 million in cash. Sunridge trades on the TSX Venture Exchange under the symbol SGC.
For additional information on the Company and its projects please view the slide show on our website at www.sunridgegold.com or call Don Halliday or Greg Davis at the numbers listed below.