Sunridge adds deposit at Asmara

Controlling a district rich with volcanogenic massive sulphides has its advantages.

Sunridge Gold (SGC-V) proved this point with the release of a resource estimate for yet another deposit at its Asmara project in Eritrea. This brings the company’s tally to five deposits with a National Instrument 43-101 compliant resource estimate within Asmara’s property boundaries.

Sunridge has been proving up the project since 2003, having drilled over 200,000 metres and outlining proven and probable reserves of 57.3 million tonnes grading 0.72% copper — enough to produce 804 million lb. copper, 1.79 million lb. zinc, 415,000 oz. gold and 11 million oz. silver, by the company’s estimates.

The four deposits that already have resource estimates are Emba Derho, Gupo Gold, Adi Nefas and Debarwa.

A prefeasibility study that considered production from these four deposits generated a base-case net present value of $555 million using a 10% discount rate, and an internal rate of return of 27%.

The latest addition to its suite of deposits is named Adi Rassi. While at this stage it is less impressive in size and grade — with inferred resources of 15.8 million tonnes grading 0.54% copper, 0.33 gram gold and 1.5 grams silver — it will likely contribute feed to a future mill.

Of the outlined inferred resources, Sunridge says 14.9 million tonnes at 0.54% copper and 0.30 gram gold fall within its conceptual optimized open-pit shell.

There is also a small, higher-grade portion of the deposit comprising 800,000 tonnes grading 0.67% copper and 0.89 gram gold that would be mined using underground methods.

The estimate is based on 26 diamond drill holes that traced the deposit over a 450-metre strike length. The deposit remains open to the north, south and at depth, with the current resource reaching a depth of 360 metres.

Unlike neighbouring Emba Derho, Adi Nefas and Debarwa deposits, Adi Rassi is associated with a steeply dipping shear zone that measures over 3 km long and 40 metres wide.

Debarwa, the most southerly of the other four deposits, is located 10 km northwest of Adi Rassi.

“Adi Rassi has the potential to provide supplemental mill fee and/or extend the Asmara project past the 15-year mine life detailed in a May 2012 prefeasibility study,” Haywood Securities analyst Stefan Ioannou writes in a research note.

Sunridge has wrapped up a $10.8-million equity financing that will allow it to complete a feasibility study on Asmara, while continuing with exploration drilling through the early part of next year. It plans to finish the feasibility study by April.