Sunridge Gold Corp.

Sunridge Gold Corp.

July 08, 2010 08:30 ET

Sunridge Gold Starts Exploration Program at Besakoa Gold-Copper-Zinc Project, Madagscar

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 8, 2010) - Sunridge Gold Corp. (TSX VENTURE:SGC) ("Sunridge") is pleased to announce that an initial exploration program has recently started at the Besakoa gold-copper-zinc volcanogenic-massive-sulphide (VMS) Project in south central Madagascar. The current work program at Besakoa property is expected to take 2-3 months and will focus on several high priority geophysical anomalies that coincide with the VMS-type surface gossan showings. The Besakoa covers approximately 60 square kilometers in south-central Madagascar and can be accessed by road from the port city of Toliara. This property is in a similar geological environment as the Company's Asmara Project in Eritrea where Sunridge has had great success discovering large VMS deposits over the past five years.

The 2010 Initial Exploration Program

The initial exploration program began in late June 2010 and is expected to be complete by October 2010. The object of the program is to develop drill targets and will consist of the following:

  • Ground gravity survey – The gravity survey will cover 14 square kilometers over the central-northern area of the property where the gossans and airborne EM anomalies are located.
  • Soil geochemical survey – Approximately 2,000 soil samples will be taken over the same area as the gravity survey.
  • Geological mapping and prospecting – All suspected gossans on the property will be sampled and mapped.
  • Exploration for vanadium – The south east area of the Besakoa property is adjacent to Energizer Resources' property where they have been drilling the Green Giant Vanadium Deposit. The adjacent area on Sunridge's property will be prospected and mapped for its vanadium potential.

Note: a plan map of the Besakoa property is available at the following link:

The Besakoa Property

The Besakoa property is underlain by Neoproterozoic volcano-sedimentary shield rocks, a geological setting similar to Sunridge's Asmara Project and Nevsun's Bisha Project both located in Eritrea. A property visit to Besakoa showed that there are numerous gossan outcrops on the license which appear to be oxidized remnants of underlying VMS style mineralization. There has been limited exploration work done on parts of the property in the 1950s and a small drilling program by Majescor Resources Inc., in 2006; however most of the property remains essentially unexplored by modern methods. Sunridge management believes that Besakoa may represent a new emerging VMS district.

Sunridge has acquired an aerial multi-sensor electromagnetic and magnetic (EM/Mag) geophysical (Fugro) survey covering the Besakoa property. This survey shows numerous conductors, many of which are several kilometres in length crossing the property. The recent field visit showed that many of these conductors are either adjacent or slightly off-set to the VMS gossan occurrences on the ground and the copper and zinc geochemistry anomalies. These airborne electromagnetic conductors can be caused by sub-surface copper-zinc massive sulfide (VMS style) mineralization.

A large gossan similar to those found on the Asmara project was discovered in the 1950s by the French Bureau de Recherches Géologiques et Minières (BRGM). Subsequent drilling by the BRGM established the presence of primary sulphide mineralization underlying the gossan outcrop. In addition, Majescor drilled another 8 short holes in 2007 to verify the BRGM drilling. However, the majority of the property has not been systematically explored and there are many gossans outcropping on the project that have not been sampled or drilled. The Company intends to make use of geological mapping, soil geochemistry and geophysics on the property as these techniques were used to discover the Company's large Emba Derho copper-zinc-gold VMS deposit within the Asmara Project in Eritrea.


Sunridge can earn an initial 50% interest in the Besakoa property by spending US$2,000,000 by September 2011and issuing 500,000 Sunridge shares to the owners Majescor Resources Inc. ("Majescor"; MJX/TSX.V). Upon acquiring a 50% interest in the Property, Sunridge will then have the right to acquire an additional 25% (total 75%) by spending an additional $2,500,000 by the end of the third year and by issuing Majescor an additional 500,000 common shares of Sunridge.

Upon acquiring a 75% interest in the Property, Sunridge will have a one-year period in which to elect to acquire the remaining 25% interest in the Property at the fair value determined at that time by an independent valuation or as agreed between the parties in cash or, at the election of Sunridge, in the equivalent value of Sunridge common shares subject to regulatory approval.


This island nation is a new up and coming mining jurisdiction in Africa. It has a great deal of geological diversity and is mostly under-explored. The democratic government has recently been re-elected and is strongly supportive of business and foreign investment. The mining laws are stable and comprehensible. There are at least two very large new mining projects underway in the country; Sherritt is building a US$3 billion+ nickel-cobalt laterite mine on the west coast of Madagascar and Rio Tinto is reported to be planning to spend over US$1 billion to develop a titanium sands project on the east coast. Alcan is also apparently looking to develop a large bauxite deposit on the island.


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 has approximately 76 million shares outstanding and approximately $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

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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