Sunridge Gold Starts Drilling at the Besakoa Copper-Zinc-Gold Project, Madagascar
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/23/11 -- Sunridge Gold Corp. (TSX VENTURE: SGC) announces that the initial drill program has commenced on the Company's Besakoa copper/zinc/gold project in Madagascar. The drilling will consist of 5,000 meters of diamond drilling focusing on a number of targets which were identified during exploration work conducted by the Company in 2010. The geological environment at Besakoa has strong similarities to the Company's Asmara Project in Eritrea where the Company has been successful in defining large amounts of copper, zinc and gold in a series of volcanogenic-massive-sulphide (VMS) deposits. The same exploration techniques used on the Asmara project were used to define the drill targets at Besakoa and Sunridge management believes that the Besakoa project may represent a new emerging VMS district.
The initial drill program will test nine high priority VMS-style targets which have been defined by Sunridge using airborne and ground geophysical surveys (electromagnetics, magnetics, gravity and audio-magneto-tellurics) soil geochemical surveys, geological and structural mapping, and VMS gossan prospecting (a summary of the results of this work can be seen in the map, to view map click on the following link: http://media3.marketwire.com/docs/SGCDrillTargets.pdf).
'We are very happy that the initial drill program at Besakoa has started,' states David Daoud, Sunridge's Exploration Manager. 'We are eager to drill test the nine high-priority targets as they look very similar to VMS deposits on the Company's Asmara Project and Nevsun's Bisha Project in Eritrea. We believe the drill program will show Besakoa to be a new VMS district in Madagascar.'
The Besakoa property covers over 60 square kilometers and is located in south central Madagascar and can be accessed by road from the port city of Toliara. Geologically the property is underlain by Neoproterozoic volcano-sedimentary shield rocks, a geological setting similar to VMS projects in Eritrea.
Agreement
Sunridge can earn a 100% interest in the Besakoa project from the license holder Majescor Resources Inc. An initial 50% interest can be earned by spending $2,000,000 before September 15, 2011 (approximately $500,000 already spent) and by issuing 500,000 Sunridge shares (200,000 previously issued) to Majescor. Upon acquiring a 50% interest in Besakoa, Sunridge will then have the right to acquire an additional 25% (aggregate 75%) by spending an additional $2,500,000 by September 15, 2012 and by issuing an additional 500,000 Sunridge shares.
Upon acquiring a 75% interest in the Besakoa project, Sunridge will have a one-year period in which to elect to acquire the remaining 25% interest at the fair value determined at that time by an independent valuation or as agreed between the parties in cash or, at the election of Sunridge, in the equivalent value of Sunridge common shares subject to regulatory approval. If Sunridge acquires a 100% interest in the Besakoa project, Majescor retains a 1% net smelter return royalty, half of which can be purchased by Sunridge for $1,000,000. If the Besakoa project is brought into commercial production, Sunridge will be obliged to pay the original owners of the project $1,000,000.
ABOUT SUNRIDGE:
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 approximately $18 million in cash. Sunridge trades on the TSX Venture Exchange under the symbol SGC. For additional information on the Company and its projects please visit our website at www.sunridgegold.com or call Greg Davis at the number listed below. All of the above mentioned technical reports are filed on the Company's profile at www.sedar.com.
Disclosure
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 GOLD CORP.
Michael Hopley, President and Chief Executive Officer
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, labour 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.
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.
Contacts:
Sunridge Gold Corp.
Greg Davis
VP Business Development
604-688-1263 (direct)
greg@sunridgegold.com
www.sunridgegold.com