Feb 12
6
Sunridge Gold just announced an updated NI43-101 resource Estimate at the Emba Derho deposit in Eritrea which shows a large increase in the size. The update is part of the current prefeasibility study which is examining 4 deposits on the Asmara Project collectively and is expected to be complete in mid-April. Sunridge is expecting the study to show strong economic numbers (ie NPV, IRR, etc..) and plans to continue into a full Bankable Feasibility right immediately.
Some important notes to make about the news release:
- The Emba Derho resource grows to 70 million tonnes in Measured and Indicated (from 62.5 million tonnes indicated in the 2008 resource)
- The resource has an additional 15 million tonnes in the Inferred category.
- The Total contained metals in the Measured and Indicated categories are estimated as:
- 1.00 billion pounds of copper
- 2.1 billion pounds of zinc
- 506,000 ounces of gold
- 18.6 million ounces of silver.
- New resource estimates from Adi Nefas and Gupo Gold are expected next week and in 2 weeks, respectively.
Sunridge management tells me that much of the increase in size is in the central body of the Emba Derho deposit and will add greatly to the minable reserves once the Prefeasibility Study is complete. Very important to take away from this report is how much bigger and better this resource has become. Sunridge is picking up momentum and they still have a solid news flow ahead, which I expect can have a significant re-rating of the share price. Normally I sell half of any personal holdings that doubled but I’ve said this stock was very undervalued at even after a double it remains quite cheap.
Technically speaking, the stock has broken out both from a classic cup formation (A) and above key moving averages (B & C). There’s no reason to think it can’t now work towards its highs on the chart.
