Sunridge Gold Announces New Higher Grade Resource for the Adi Nefas Deposit Asmara Project, Eritrea
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/22/12 -- Sunridge Gold Corp. (TSX VENTURE: SGC)(OTCQX: SGCNF) is pleased to announce that it has received a new independent resource estimate for the Adi Nefas zinc-gold-copper volcanogenic-massive-sulphide (VMS) deposit on the Company's 100% owned Asmara Project, Eritrea. This new resource was completed by Snowden Mining Industry Consultants Inc. ('Snowden') as part of its ongoing prefeasibility study on the Asmara North Deposits which include the Emba Derho copper-zinc-gold deposit, the Adi Nefas zinc-copper-gold VMS deposit, the Debarwa copper-gold VMS deposit, and the Gupo gold deposit. Adi Nefas is located only six kilometres from the 70 million tonne Emba Derho Deposit. The prefeasibility study is being conducted by Snowden and GBM Minerals Engineering Consultants Ltd. and is scheduled for completion in April 2012.
Highlights:
-- Indicated resources in the primary zone are 1.8 million tonnes averaging
10.05% zinc, 3.31 g/t gold, 1.78% copper and 115g/t silver
-- Total contained metals in the Indicated categories at Adi Nefas are
estimated as:
-- 408.0 million pounds of zinc
-- 72.2 million pounds of copper
-- 196,000 ounces of gold
-- 6.81 million ounces of silver.
Note: Contained metal calculations are as follows: copper and zinc: tonnes
x grade (%) x 2204.622. Gold and silver: tonnes x grade (g/t) / 31.10348.
Results were rounded and no allowance was made for mining dilution or metal
losses in the recovery process.
Sunridge President and CEO Michael Hopley says, 'The average grade of all metals in the Adi Nefas deposit has significantly increased in this new resource estimate compared to the previous estimate in 2008.This high-grade material should enhance the economics of the Asmara Project when this material is mined and blended as a high-grade feed to a central North Asmara processing plant in conjunction with the nearby Emba Derho deposit as well as the sulphide material from the Debarwa deposit. We expect that most of these resources will be converted to reserves with the completion of the pre-feasibility study in April.'
Indicated Mineral Resources at Adi Nefas
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Copper Zinc Gold Silver
Zone Cut-off grade Million Tonnes % % g/t g/t
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Primary 2.0 % Zn 1.841 1.78 10.05 3.31 115
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Total Metal in Indicated Mineral Resources at Adi Nefas
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Cut-off Million Copper M Zinc M Gold Silver M
Zone grade Tonnes lbs. lbs. K oz. oz.
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Primary 2.0 % Zn 1.841 72.3 408.0 196 6.83
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Note: Resource and contained metal estimates are rounded and remain subject
to factors such as mining dilution and process recovery losses.
NOTES
This new Adi Nefas resource estimate, completed by Snowden, is as of February 20, 2012 and complies with the CIM Definition Standards on Mineral Resources and Mineral Reserves, as required by National Instrument 43-101. Resource modeling and grade estimation was undertaken by Snowden and reviewed by Andrew F. Ross, FAusIMM (CP Geo), P.Geo (APEGBC #145711)(Senior Principal, Snowden), a Qualified Person as defined by NI 43-101, based on geological interpretations and a drill database (current to August 2011) provided by Sunridge. The database and the Sunridge sampling and assaying QA/QC procedures and results were reviewed by Snowden. Further details of the estimation procedure will be available in the NI-43-101 report which will be posted on the Company's profile on SEDAR (http://www.sedar.com) no later than 45 days from the date of this press release.
GEOLOGICAL BACKGROUND
The Adi Nefas deposit occurs as a prominent outcropping gossan at surface that is the expression of deeper volcanogenic massive sulphide (VMS) mineralization. The gossan is traceable over a strike length of 700 metres and is north-northeast trending. The deposit is a steeply east dipping massive sulphide layer that is hosted within a sequence of felsic meta-volcanic and meta-sedimentary rocks. The massive sulphide layer has an average width of 6 m to 12 m and is largely hosted within a hydrothermally altered felsic quartz-sericite-chlorite pyrite schist which is flanked in the hanging wall and footwall by altered meta-basaltic rocks. The deposit is partitioned into upper oxide and transition zones with precious metal enrichment and base metal depletion, underlain by a zinc and copper rich supergene zone, and a lower primary zinc-rich sulphide zone.
The primary zone is typically developed beyond a depth of 40 metres from surface and is the focus of the prefeasibility study. The primary zone includes a unit of low grade chert and exhalite which has been modeled separately to the massive sulphides. Previous mineral resource estimates did not partition this rock unit from the massive sulphides and as a result were lower grade and higher tonnage than the current estimate.
METHODOLOGY
The mineralization on which this new Adi Nefas resource estimate is based extends over a strike length of 455 metres and a width of up to 12 metres and has been drilled to a maximum vertical depth from surface of approximately 400 metres. The deposit has been explored using 101 exploration drill holes and 8 geotechnical drill holes. 70 drill holes encountered mineralization and assays of split core have been used in this estimation of resources.
The interpretations of mineralized zones were modeled using three-dimensional wireframing techniques based on a distribution of drill intersections ranging from less than 25 metre to up to 135 metre spacings on 40 metre drill section intervals. The wireframe interpretations formed the basis for the construction of a block model as well as the constraining of samples for geostatistical analysis and grade estimation. A block model was constructed in Datamine mining software with a parent cell dimension of 7.5 m (X) x 10 m (Y) x 5 m (Z) subcelled to 0.5 m x 5 m x 2.5 m (XYZ) for accurate coding with the wireframe interpretations.
Grades for copper, zinc, gold, silver, lead and iron were estimated within primary and weathered horizon control using Ordinary Kriging after compositing the assay intervals to 1.5 m down-hole lengths. Search ellipsoid dimensions and orientations were determined on structural geological and geostatistical information. Density values were calculated for blocks based on regression formulae for iron, copper, zinc and lead estimates.
The interpreted mineralized zones were categorized for resource classification as Indicated or Inferred in a series of steps. Each zone was reviewed in the context of the spatial distribution of drill intersections used to model and estimate grades for that zone, with due consideration for the known geological and geostatistical continuities and confidences in the base data and geological interpretations. On this basis the relatively densely drilled (40 m section spacing) primary zone received Indicated status.
Michael Hopley, President and CEO of Sunridge Gold Corp. is the 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 resource estimate, Andrew F. Ross of Snowden.
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 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
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.
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