Sunridge Gold Corp.

Sunridge Gold Corp.

November 16, 2009 08:01 ET

Sunridge Gold Appoints New Director and Provides Update on Antofagasta Asmara Project Joint-Venture Exploration Program

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 16, 2009) - Sunridge Gold Corp. (TSX VENTURE:SGC) is pleased to announce that Mr. Ricardo Muhr, Vice President of Mineral Resources for Antofagasta Minerals S.A. ("Antofagasta"), has been appointed to Sunridge's Board of Directors. Last month Sunridge announced a strategic partnership with Antofagasta whereby Antofagasta has agreed to fund US$10 million of exploration work on Sunridge's Asmara Project in Eritrea. In addition, Antofagasta completed a US$5 million private placement financing into Sunridge and became the Company's largest shareholder. As a result Antofagasta has the right to have one representative on the Sunridge board.


Sunridge is very pleased to have Mr. Muhr join the Board as he brings many years of expertise and success in the base metals business to the Company. Since 1997 Mr. Muhr has held the post of Vice-President of Mining Resources for Antofagasta and he has been responsible for the national and international exploration for Antofagasta since that time. He holds a degree in Geology from the University of Chile and from 1982 to 1984 he was involved in the exploration and geological evaluation of Escondida, one of the largest operating copper mines in Chile. In 1988, he led the evaluation of the Los Pelambres deposit, one of Antofagasta's most successful mining operations. Mr. Muhr is also a Director of Energia Andina S.A., a joint-venture company between Antofagasta and the Chilean state-owned oil company, ENAP. Energia Andina is dedicated to the exploration and development of geothermal energy in Chile. Mr. Muhr is also Director of Anaconda Peru S.A. and a stand-in Director of Minera Los Pelambres and Minera El Tesoro. Mr. Muhr has broad knowledge of mining in the South American Andes Region and is a member of the Chilean Geological Society and of the Society of Economic Geologists. Antofagasta is a wholly-owned subsidiary of Antofagasta plc, which has interests in mining, transportation and water distribution. Antofagasta plc is listed on the London Stock Exchange and is a constituent of the FTSE-100 Index. In addition to copper mining operations and growth projects in Chile, it also has projects at exploration of feasibility level in Latin America, Asia, Africa and Europe.

The Board have today granted Incentive Stock Options to Mr. Muhr on 100,000 shares of the Company's capital stock, exercisable for up to five years at a price of $0.66 per share, which price is the last closing price of the Company's shares prior to the date of grant. The options granted will vest 50% immediately and 50% on six months from date of grant and will be subject to any applicable regulatory hold periods.


The first Asmara Project Joint-Venture Management Committee meeting was held in Asmara on October 16th 2009. This committee consists of two members from Sunridge and two from Antofagasta. A program of detailed geological and structural mapping was agreed to on the large and highly prospective Dairo Paulus exploration area with the goal of defining specific drill targets. This work has been underway for the past month with staff from both Sunridge and Antofagasta. It is planned that drilling will commence at Dario Paulus in January 2010. In addition the Joint-Venture Management Committee agreed to a compilation program of the existing geochemical and geophysical data at Dairo Paulus as well as a regional stream sediment sampling program. This work has been underway for several weeks.


Sunridge Gold Corp. is a mineral exploration and development company focused on the exploration, discovery and development of base and precious metal projects on the Asmara Project in Eritrea. On October 2, 2009, Sunridge announced the signing of a definitive exploration and funding agreement with Antofagasta to form a strategic partnership whereby Antofagasta will fund US$10,000,000 of exploration work over a five year period on the "Exploration Areas" of the Asmara project to earn up to a 75% interest. Antofagasta also invested US$5,000,000 into Sunridge in a non-brokered private placement.

Sunridge has approximately 76 million shares outstanding and $9.0 million in cash. Sunridge 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 or call Don Halliday or Greg Davis at the numbers listed below.


"Michael Hopley"

Michael Hopley, President and Chief Executive Officer

This press release contains forward-looking statements about the Company and its business. Forward looking statements are statements that are not historical facts and include resource estimates. The forward-looking statements in this press release are subject to various risks, uncertainties and other factors that could cause the Company's actual results or achievements to differ materially from those expressed in or implied by forward looking statements. These risks, uncertainties and other factors include, without limitation risks related to fluctuations in gold prices; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Company's properties; uncertainties involved in the interpretation of drilling results and other tests and the estimation of gold resources; the possibility that required permits may not be obtained on a timely manner or at all; the possibility that capital and operating costs may be higher than currently estimated and may preclude commercial development or render operations uneconomic; the possibility that the estimated recovery rates may not be achieved; risk of accidents, equipment breakdowns and labor disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; and other factors identified in the Company's filings with Canadian securities regulatory authorities. Forward-looking statements are based on the beliefs, opinions and expectations of the Company's management at the time they are made, and other than as required by applicable securities laws, the Company does not assume any obligation to update its forward-looking statements if those beliefs, opinions or expectations, or other circumstances, should change.

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.

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