Sunridge Gold Corp. (SGC:TSX.V/SGCNF:OTCQX) has today filed a National Instrument 43-101 compliant technical report regarding the preliminary feasibility study (the “Study”) for the zinc-gold-copper volcanogenic massive sulphide (VMS) deposits on the Company’s 100% owned Asmara Project, Eritrea as announced on May 2, 2012.
The Study concluded that operating all four deposits of the Asmara Project (Emba Derho, Adi Nefas, Gupo Gold and Debarwa) as an integrated operation with ore being processed at a single central mill is technically feasible and is the optimum economic situation and recommends that the project be advanced to a feasibility study.
Base Case Highlights:
- Net Present Value (“NPV”) of $555 million at a 10% discount (pre-tax base case) (NPV @ 0% discount - $1,642 million)
- Internal rate of return (IRR) - 27%
- Payback - 3.5 years
- Base Case metal prices used - US$3.28/lb copper, US$0.99/lb zinc, US$1,111/oz gold, US$21.00/oz silver
- Initial capital cost estimate - $489 million including a contingency and owners costs
- On site operating costs - $25.78 per tonne average through life of mine
- Average annual metal production -
- 56.9 million pounds (25,900 tonnes) of copper
- 136.0 million pounds (61,800 tonnes) of zinc
- 26,000 ounce of gold
- 695,000 ounces of silver
- Total metal production –
- 804 million pounds (365,000 tonnes) of copper
- 1.789 million pounds (812,000 tonnes) of zinc
- 415,000 ounces of gold
- 11 million ounces of silver
- Life of Mine – 15.25 years
The report is titled “Asmara North Preliminary Feasibility Study” with an effective date of May 1, 2012.
Michael Hopley, President and CEO of Sunridge Gold Corp. is the Company’s Qualified Person responsible for the contents of this press release and has reviewed the information in the release and confirmed that it is consistent with that provided by the independent Qualified Persons responsible for the Study.
Sunridge 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 and exploration properties in Madagascar. Sunridge currently has approximately 117 million shares outstanding and 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 Greg Davis at the numbers listed below.
SUNRIDGE GOLD CORP.
Michael Hopley, President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements that are based on the Company’s current expectations and estimates. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “suggest”, “indicate” and other similar words or statements that certain events or conditions “may” or “will” occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Such factors include, among others: the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans to continue to be refined; possible variations in ore grade or recovery rates; accidents, labor disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing; and fluctuations in metal prices. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.