Yesterday, Sunridge Gold announced significant drill results at its
Emba Derho copper-zinc-gold deposit, Asmara Project, in Eritrea.
Highlights
Infill drill results of note include hole ED-273-D with 5.2% zinc
over 143m and hole ED-268-D with 1.9% copper over 47m (true
width estimated at 80%). The holes show continuity of the
orebody at Emba Derho, which was already declared an
economic deposit based on the PEA conducted by Wardrop in
June 2009 (pre-tax NPV of $204 million at a 10% discount rate).
Of note from these recent results is the geotechnical drilling,
which has been interpreted as showing good competence in the
rocks.
There is currently a 5,000m exploration program on the deposit
and additional drilling on the Adi Nefas and Gupo Gold deposits,
about 6km away, which would be used to complete a prefeasibility
on a possible combined operation. The final mining
schedule and processing method is still to be confirmed due to
the number of various alternatives of tackling a deposit that
contains a gold oxide cap, a copper rich zone and a zinc rich
zone.
Sunridge is also advancing the feasibility-stage Debarwa VMS
project, which is located to the south of the same Asmara Project.
The company is examining ways of mining this smaller deposit
that also contains a high-grade near-surface supergene zone of
5.4% copper.
Milestones and Catalysts