Drill results from the Asmara project in Eritrea gave Sunridge Gold (SGC-V, SGCNF-O) a rest from the recent drubbing commodity stocks have taken on the venture market.
The day the news was released, shares in the White Rock, B.C.-based company shot up 20% or 25 to $1.55 apiece on trading volume of roughly 40,000 shares.
Its shares had been trading at around $2.20 as recently as mid-July, but had fallen with the broader market to $1.30 the day before it announced the drill results.
The good news comes from the Emba Derho deposit, one of four at Asmara. The others are Debarwa, Adi Nefas and Gupo.
Emba Derho is shaping into a strong copper-zinc deposit, as shown by some results in a 20-hole drill program that extended copper and zinc mineralization northward.
Highlights from the copper zone included 54.7 metres grading 1.11% copper and 0.59% zinc; 58.8 metres averaging 1.47% copper and 0.5% zinc; and 146.3 metres at 1.21% copper and 0.92% zinc.
Highlights from the zinc zone included 52.5 metres grading 2.72% zinc and 0.4% copper; 61.85 metres at 2.44% zinc; and 19.55 metres of 7.81% zinc.
While drilling is aimed at defining the edges of the mineralized body, all results come from an area that falls inside the company’s preliminary pit outline, Sunridge says.
Resource estimates have already been submitted for Debarwa and Adi Nefas, while an estimate and engineering studies for Emba Derho are due in October.
Sunridge describes Debarwa and Adi Nefas as advanced, high-grade gold, copper, zinc, and silver volcanogenic massive sulphide deposits. Gupo is an advanced gold deposit, while Emba Derho is a volcanogenic massive sulphide deposit.
Asmara covers 1,100 sq. km in central Eritrea, which the company says is well serviced by infrastructure.
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