SUNRIDGE Gold Files Amended NI 43-101 Technical Report on the Feasibility Study for the Asmara Project, Eritrea
Sunridge Gold Corp. (TSX.V:SGC) (OTCQX:SGCNF) announces today it has filed on SEDAR an amended Technical Report (“the Amended Report”) on the independent Feasibility Study on the Asmara Project, Eritrea as a result of a review by the British Columbia Securities Commission. The original report was filed on July 2, 2013 (the “Original Report”). The amendments are all additions and do not change any fundamental facts contained in the Original Report and are summarized as follows:
- In addition to references to previously filed technical reports, summaries of these technical reports are now included in Sections 9, 10, 11, 12 and 14 of the Amended Report.
- The Amended Report now discloses information on the Adi Rassi and Kodadu mineral resource estimates which are included on the same Exploration Licenses as the Debarwa, Emba Derho, Adi Nefas and Gupo Gold deposits, but which are not part of the feasibility study for the Asmara Project.
The following Qualified Persons have reviewed and approved the scientific and technical content of this news release:
Neil Senior, P. Eng. MSc Mech. Eng, FSAIMM, SENET (Pty) Ltd.
Anthony Finch, P. Eng. MAusIMM, Snowden Group Pty Ltd.
Andrew Ross, FAusIMM, Snowden Mining Industry Consultants Pty Ltd.
Christopher John Martin, BSc (Hons), MEng, IMMM, Blue Coast Metallurgy Limited Ltd.
Scott David Rees, P. Eng. Knight Piésold Ltd.
David Gwilym Thomas P. Geo. Fladgate Exploration Consulting Corporation
About the Asmara Project, Eritrea
The Amended Report on the independent feasibility study for the Asmara Project, Eritrea demonstrates that mining of the four advanced deposits that make up the Asmara Project (Emba Derho, Adi Nefas, Gupo Gold and Debarwa) and processing of the ore near the large Emba Derho deposit is economically robust with a Net Present Value (“NPV”) of $692 million. The report outlines a three-phase staged start-up mining plan which would initiate production almost one year earlier than was envisaged in the prefeasibility study. This earlier cash-flow, combined with capital cost reductions, reduces the initial capital requirements to be financed by over $130 million.
Base Case Highlights (all $ equals US dollars):
- NPV of $692 million at a 10% discount (pre-tax)
NPV of $345 million at a 10% discount (post-tax) - NPV of $837 million at an 8% discount (pre-tax)
NPV of $443 million at an 8% discount (post-tax) - Internal rate of return (IRR) -- pre-tax 34%, post-tax 27%
- Payback -- pre-tax 4.1 production years, post-tax 4.6 years
- Base Case metal prices used - $3.25/lb copper, $1.00/lb zinc, $1,400/oz gold, $25.00/oz silver
- Initial capital cost Phase IA & IB Direct Shipping Copper Ore & Heap-Leach Gold - $46 million
- Initial Phase II & III flotation plant capital cost estimate - $357 million
- Peak Equity Funding - $354 million
- On site operating costs - $29.42 per tonne average through life of mine
- Average annual metal production over the first 8 years-
- 65 million pounds (29,000 tonnes) of copper
- 184 million pounds (83,000 tonnes) of zinc
- 42,000 ounces of gold
- 1.0 million ounces of silver
- Total metal production -
- 841 million pounds (381,000 tonnes) of copper
- 1,874 million pounds (850,000 tonnes) of zinc
- 436,000 ounces of gold
- 11 million ounces of silver
- Life of Mine - 1 construction year, 15.3 production years
The Asmara Project Feasibility Study was completed by lead engineering company SENET (Pty) Ltd. under the direction of David Chambers, P. Eng. (MBA) and approved by Neil Senior, P. Eng. with support from Snowden Group Inc. on mine design and mine planning and work by Knight Piésold Ltd. on water and waste management. Blue Coast Metallurgy Ltd. directed metallurgical test-work.
As a result of the positive outcome of the feasibility study, Sunridge is continuing to work towards bringing the Asmara project into production as soon as possible, by completing required environmental studies, applying for the mining license, arranging debt financing, commencing detailed engineering work and hiring new key employees. Management estimates that initial production on the Asmara Project will commence in mid-2015.
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 Person responsible for the Study.
About Sunridge:
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 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” | For further information contact: | |
| Michael Hopley, President and Chief Executive Officer | Greg Davis, VP Business Development | |
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| Email: greg@sunridgegold.com Tel: 604-688-1263 (direct) | |
| 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. | ||
Contact
Sunridge Gold Corp.
Greg Davis, 604-688-1263 (direct)
VP Business Development
greg@sunridgegold.com