Aug 10
25
Thanks in part to the continuing successful march to production by Nevsun Resources, Eritrea appears ready to be re-rated as the next significant mining and exploration place to be. Sunridge expects be very active exploring and developing their projects this fall as Nevsun moves closer to production.
Yesterday, Sunridge Gold (SGC-TSX-V $.53) announced the addition of Scott Ansell to their team as Vice President Project Development to “lead and manage the next phase of engineering work necessary for all four deposits within the Asmara Project, Eritrea”. This represents a shift for Sunridge from purely exploration to the development phase. Sunridge plans to begin a full Feasibility Study within the next month for the high grade Debawa copper-gold deposit with the intent of fast tracking to production by mining a portion of the deposit that averages approximately 18-20% copper. The company also intends to begin prefeasibility studies on the other 3 deposits on the Asmara project early in 2011.
The addition of Scott to the team now gives Sunridge one of the most Eritean experienced teams. Four members of the management team were involved with Nevsun for the initial discovery of the Bisha Project, late 2001, through to resources definition and feasibility. They bring all that experience to the development of Sunridge’s resource rich Asmara Project.
The “De-Riskification” of Eritrea: The majors Return?
It appears the perception of Eritrea is changing quickly as Eritrea is emerging as a new world class mining district. Nevsun’s Bisha Mine is on schedule for commissioning later this year and several majors have moved in to the country including Newmont, Antofagasta, Thani Ashanti, and Lundin Mining.
Development
Within the Asmara Project, Sunridge has 3 VMS base and precious metal deposits that together contain (NI43-101 Indicated) resources of:
- 1.28 billion pounds (580,000 tonnes) of copper,
- 2.5 billion pounds (1,130,000 tonnes) of zinc,
- 1.05 million ounces of gold, and
- 31.8 million ounces of silver.
In addition the Gupo Gold deposit contains 189,000 ounces of gold in the Inferred category.
Sunridge plans on beginning a full Feasibility Study at the Debarwa Deposit within the next month flowed by Prefeasibilty on the 3 other deposits near year end.
We’ve come a long way from last one out of Eritrea turn the lights off. There’s still a lot more ahead for SGC to accomplish but momentum seems to have swung nicely back to the positive side.
