Sunridge Gold Corp.

Sunridge Gold Corp.

October 21, 2010 08:31 ET

Sunridge Gold Selects Senet to Conduct Feasibility Study on the Debarwa Project, Eritrea

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 21, 2010) - Sunridge Gold Corp. (TSX VENTURE:SGC) is pleased to announce that Sunridge has engaged Senet (Pty) Ltd. ("Senet") to conduct a feasibility study on its Debarwa copper-gold-zinc property in Eritrea. Senet, based in Johannesburg, South Africa, is an internationally respected leader in the design, engineering and construction of mining projects in Africa, with extensive experience working in Eritrea on the Bisha Mine Project for Nevsun Resources Ltd. Their expertise in process plant and infrastructure will be complemented by AMC Consultants Pty Ltd in mine design for the development of the Debarwa project.

The feasibility study will consider a standalone process plant using flotation for the recovery of the base and precious metals and will study various mining options over a forecast life of mine of approximately 9 years. The study will further investigate a direct ship option of high grade mineralization (greater than 15% copper) to generate early cash flow and enhance economics of the deposit. The completion of this report is expected in the third quarter of 2011.

Scott Ansell, VP Projects for Sunridge, stated that, "Senet has been instrumental in building the first modern mine in Eritrea and has demonstrated their capabilities in engineering and construction of the Bisha Mine. Their experience in the country will be instrumental to the successful completion of the Debarwa feasibility study."

The Debarwa Deposit

The Debarwa deposit is located close to paved road access just 30 minutes drive from the capital city of Asmara and near the local power grid. There are existing underground workings at Debarwa, a shaft and two levels of development, from work completed by previous owners in the 1970s. This high-grade copper-gold-zinc VMS deposit is 10 to 30 meters wide and Sunridge has defined it in great detail it over an approximate 1.4 kilometer strike length by drilling over three-hundred drill holes totalling over 38,000 meters. The deposit is made up of an oxide gold "cap" consisting of an estimated 2.442 million tonnes at an average grade of 1.71 g/t gold. Underlying this zone is the copper enriched supergene zone consisting of an estimated 1.336 million tonnes at an average grade of 5.36% copper. Underlying the supergene zone is the primary mineralized zone which is open in depth with current estimates of 699,000 tonnes at an average grade of 2.53% copper, 3.23% zinc and 0.87 g/t gold (See details of the Debarwa resources in the table below).

DSO Zone

A high grade copper zone (greater than 15% copper) has been identified within the supergene zone and was examined in the recent "Strategic Production Study" completed by PEG Mining Consultants Inc (see news release NR2010-9, dated July 22, 2010). The feasibility study will examine options to begin mining operations at Debarwa by selectively mining the DSO (Direct Shipping Option) to a smelter thereby producing cash flow early in the mine life during construction of a process plant facility.

In addition, Sunridge has completed extensive metallurgical test work on mineralization from the Debarwa deposit and recent results have shown excellent base and precious metal recoveries by the use of flotation. The current work program leading towards the feasibility study includes an updated estimate of the resources, advanced metallurgical studies, hydro-geological and groundwater studies, design of tailings storage facility and collection of environmental data leading to the completion of a Social Economic Impact Assessment (SEIA) study planned to be completed at the same time as the feasibility study.

On completion of the Debarwa feasibility study and the SEIA Sunridge intends to apply for a mining license from the government of Eritrea. Upon the issue of a mining license, the government will retain its 10% free carried interest in the project and will have the option to purchase up to an additional 30% interest from Sunridge to become a contributing joint venture partner. The government also holds a 3.5% net smelter return royalty on all base metals produced at Debarwa and a 5% net smelter return royalty on all precious metals.

The January 21, 2008 MSA Geoservices (Pty) Ltd. ("MSA") Indicated resource estimates for Debarwa are summarized as follows:

Debarwa - Indicated Resources
Zone Cut Off Million tonnes Au g/t Ag g/t Cu% Zn%
Oxide+Transition 0.5 g/t Au 2.442 1.71 13.79 0.12 0.09
Supergene 1% Cu 1.336 1.54 33.87 5.36 0.08
Primary 1% Cu 0.699 0.87 22.31 2.53 3.23
Totals   4.478        

Note: An updated resource estimate will be completed on the Debarwa Deposit as part of the feasibility study which will include assays from 35 drills holes from the drill program conducted in late 2009.

Michael J. Hopley the President and Chief Executive Officer of Sunridge is the Qualified Person for Sunridge and he is the person responsible for preparation of the technical information contained in this news release.


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 76 million shares outstanding and approximately $4.4 million in cash. Upon the close of this private placement and the private placement announced on September 24, 2010 and the second private placement announced on October 14, 2010, Sunridge will have approximately 115 million shares outstanding with $30.5 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

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