Ocean Equities says recent exploration success adds "significant value" to Sunridge Gold

Wed 9:27 am by Joyanta Acharjee

"Exploration success at Adi Rassi to add significant value to Sunridge's portfolio," Ocean Equities said in a note.

Capital markets firm Ocean Equities has commented on recent drilling results from Sunridge Gold Corp's (CVE:SGC)(OTCQX:SGCNF) Adi Rassi copper-gold prospect, part of the company's Asmara Project in Eritrea.

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.

Earlier this month, Sunridge said the results from Adi Rassi continued to show wide copper and gold intercepts and confirms management's belief that Adi Rassi is a new large copper-gold discovery that has the potential to become Sunridge's fifth deposit on the Asmara Project.

"Exploration success at Adi Rassi to add significant value to Sunridge's portfolio," Ocean Equities said in a note.

Sunridge said that the copper-gold mineralized zone has now been defined over about 400 metres strike length, 40 to 100 metres in width and to a vertical depth of 330 metres. The zone remains open and Sunridge is now planning the next phase of drilling and completion of an initial resource estimate on the Adi Rassi deposit.

Amongst the highlights, hole AR-013-D encountered 0.80% copper and 1.01 grams per tonne (g/t) gold over 56.17 metres; AR-014-D drilled for 49.65 metres averaging 0.31% copper and 0.47 g/t gold; hole AR-016-D discovered 0.52% copper and 0.34 g/t gold over 74.26 metres; AR-017-D drilled 38.20 metres averaging 1.50% copper and 0.50 g/t gold and hole AR-018-D encountered 0.54% copper and 0.43 g/t gold over 99 metres.

"Given the impressive first set of exploration drill results from Adi Rassi there is the potential that Adi Rassi may become Sunridge's second largest asset behind Emba Derho and potentially provide the economics to be developed as a stand alone asset or processed in association with Sunridge's other assets," Ocean Equities said.

Based on the results of a prefeasibility study for the Asmara Project released earlier this year, Ocean Equities has established a valuation target of $0.68 per share.

"Entry to Sunridge at this level offers considerable upside to investors as the company moves to completion of a full feasibility study at Asmara."