Sunridge Gold Corp.

Sunridge Gold Corp.

May 12, 2011 08:01 ET

Sunridge Gold Announces Termination of Antofagasta Exploration Option Agreement, Asmara Project, Eritrea

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 12, 2011) - Sunridge Gold Corp. (TSX VENTURE:SGC) ("Sunridge" or the "Company") announces that it has received a termination notice from Antofagasta Minerals S.A. ("Antofagasta") effective May 11, 2011 terminating the Option Agreement between Sunridge and Antofagasta on the "Exploration Areas" of the Company's Asmara Project.

Antofagasta is exercising their option to terminate the agreement at this time based on meeting their minimum required expenditure of US$2 million in the first two years from the signing of the agreement. The termination of this option agreement between Sunridge and Antofagasta means that Sunridge will again be the 100% owner of all the exploration ground in addition to the four deposits that currently make up the 800 square kilometer Asmara Project. The exploration ground of the Asmara Project covers a large and only partially explored volcanogenic-massive-sulphide (VMS) district which, in the opinion of Company management, has several highly prospective exploration targets with the potential for the discovery of other copper/zinc/gold/silver VMS deposits. Sunridge will be planning and announcing near term exploration programs within the next month.

"We are very happy to again have 100% ownership of the exploration areas on the Asmara Project particularly given the fact that Sunridge now has more than $20 million in cash and will therefore be able to conduct an aggressive exploration program on the property in addition to our ongoing feasibility and pre-feasibility studies on our four known deposits," states Michael Hopley, Sunridge President and CEO. "Antofagasta has been a great partner and has been a tremendous stamp of approval for the mining industry in Eritrea and we have enjoyed working with them."

On September 4, 2009 the Company announced that it had entered into to an option agreement with Antofagasta whereby Antofagasta could fund US$10,000,000 of exploration work over a five-year period to earn an initial 60% interest in parts of the Company's Asmara Project. To date Antofagasta has spent approximately US$2.2 million on exploration work on the Asmara Project.


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 $20 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, 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.

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