VANCOUVER, British Columbia--(BUSINESS WIRE)--Sunridge Gold Corp. (the “Company” or “Sunridge”) (SGC:TSX.V/SGCNF:OTCQX) is pleased to provide an update on the progress of the negotiations with Eritrean National Mining Corporation (“ENAMCO”) for ENAMCO to purchase a 30% participating interest in the Company’s Asmara Project in Eritrea. Talks have been progressing between the two parties within the framework of the mining code of the country as defined in the Eritrean Mining Proclamation.
The framework of the negotiations between the parties is summarized as follows:
- This 30% interest in the Asmara Project to be purchased by ENAMCO is in addition to ENAMCO’s existing right to receive a 10% non-assessable interest that will be carried to production by the participating partners.
- ENAMCO’s 10% non-assessable interest will be carried 66⅔% by Sunridge and 33⅓% by ENAMCO.
- The price and terms of the purchase of the participating interest by ENAMCO are currently being negotiated.
- Once negotiations are concluded, ENAMCO will contribute 33⅓% of all development costs as they are incurred, as well as any other ongoing expenditure on the project, including exploration.
Michael Hopley, President and CEO of Sunridge commented, “We are pleased with the progress of negotiations with ENAMCO so far. We are working within the understandable and transparent framework outlined in the Eritrean Mining Proclamation. We hope to conclude the agreement in a timely manner and look forward to moving into the next phase of development of the Asmara project with ENAMCO as a partner”.
The Asmara Project consists of four mineral deposits, the Emba Derho, Debarwa and Adi Nefas copper-zinc-gold and silver deposits and the Gupo gold deposit all located within 40 kilometres of the capital city of Asmara. The results of a preliminary feasibility study (the “Study”) that considered all deposits being processed at a central mill was announced on May 2, 2012. The Study showed production from the Asmara Project of 365,000 tonnes of copper, 812,000 tonnes of zinc, 415,000 ounces of gold and 11 million ounces of silver over a 15.25 year mine life. The Study also demonstrated a pre-tax net present value of $555 million at a 10% discount rate and an estimated initial capital cost of $489 million. Sunridge is currently completing a feasibility study on the Asmara Project which is planned for completion in early 2013. Application for a mining license and permitting will follow the completion of the feasibility study and the social and environmental impact assessment.
Mr. Hopley is the Qualified Person who approved the technical information contained in this news release.
Sunridge is a mineral exploration and development company focused on the acquisition, exploration, discovery and development of base and precious metal deposits on the Asmara Project in Eritrea and exploration properties in Madagascar. Sunridge currently has approximately 175,162,728 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 continue to be refined; possible variations in ore grade or recovery rates; accidents, labor disputes and other risks of the mining industry; delays in negotiating a shareholders’ agreement with ENAMCO and 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.
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