Sunridge Gold Corp. (TSX.V:SGC) is pleased to announce that it has received a new independent resource estimate which shows a significant increase in size for the Emba Derho volcanogenic massive sulphide (VMS) deposit on the Company's 100% owned Asmara Project, Eritrea. This new resource was completed by Snowden Mining Industry Consultants Inc. (Snowden) as part of its ongoing prefeasibility study on the Asmara North Deposits which include Emba Derho, the Adi Nefas zinc-gold-copper VMS deposit and the Gupo gold deposit. The prefeasibility study is being conducted by Snowden and GBM Minerals Engineering Consultants Ltd. and is scheduled for completion in April 2012.
Measured and Indicated resources are 70.0 million tonnes. In addition there are 15 million tonnes in the Inferred category
Copper-rich zone: 49.8 million tonnes at an average grade of 0.83% copper and 0.93%
Zzinc Zinc-rich zone: 16.8 million tonnes at an average grade of 2.80% zinc and 0.31 g/t gold
Total contained metals in the Measured and Indicated categories are estimated as:
1.00 billion pounds of copper 2.1 billion pounds of zinc 506,000 ounces of gold 18.6 million ounces of silver.
Note: Contained metal calculations are as follows: copper and zinc: tonnes x grade (%) x 2204.622. Gold and silver: tonnes x grade (g/t) ÷ 31.10348. Results were rounded and no allowance was made for mining dilution or metal losses in the recovery process.
Sunridge President and CEO Michael Hopley says This new resource estimate exceeds expectations; Emba Derho now contains 1 billion pounds of copper and over 2 billion pounds of zinc along with significant amounts of gold and silver in the Measured and Indicated resource categories. Because of the exceptionally clean metallurgy and amenable shape of the deposit for open-pit mining, we expect that most of these resources will be converted to reserves with the completion of the pre-feasibility study in April.
Since the last resource estimate at Emba Derho (Wardrop, September 17, 2008) 150 drill holes for a total of over 30,000 meters of drilling have been completed by Sunridge with the goal of expanding the size of the deposit as well as better defining areas of the deposit to upgrade the mineral resources to the Measured and Indicated categories for the pre-feasibility study; the study will only consider material in these categories. The drilling was also designed to collect samples for ongoing metallurgical testwork as well as the gathering of geotechnical data.
This new Emba Derho resource estimate, completed by Snowden, is as of February 3, 2012 and complies with the CIM Definition Standards on Mineral Resources and Mineral Reserves, as required by National Instrument 43-101. All resource modeling and grade estimation was undertaken by Andrew F. Ross, FAusIMM (CP Geo), P.Geo (APEGBC #145711)(Senior Principal, Snowden), a Qualified Person as defined by NI 43-101, based on geological interpretations and a drill database (current to September 2011) provided by Sunridge. The database and the Sunridge sampling and assaying QA/QC procedures and results were reviewed by Snowden. Further details of the estimation procedure will be available in the NI-43-101 report which will be posted on the Company's profile on SEDAR (http://www.sedar.com) no later than 45 days from the date of this press release.
The mineralization on which this new Emba Derho resource estimate is based extends over a strike length of 1,250 metres and a width of 850 metres and has been drilled to a maximum vertical depth from surface of approximately 500 metres. The deposit has been explored using 322 exploration drill holes and 7 geotechnical drill holes. 280 drill holes encountered mineralization and have been used in this estimation of resources. In this total were 236 diamond core holes and 44 reverse-circulation holes.
The geological interpretation of the Emba Derho volcanogenic massive sulphide deposit (VMS) deposit has identified four subsidiary zones in a strongly folded primary sequence intruded by post-mineralization felsic dykes and subjected to weathering; from top to bottom these are the gold oxide, copper supergene, zinc-rich and copper-rich primary zones. The oxide and supergene are characterized by strong weathering-related vertical zonation of depletion and enrichment, resulting in a sequence, from top-down, of near surface gold oxide and transition zones, through a supergene copper zone and a lowermost horizon of primary zinc and copper mineralization.
The interpretations of mineralized zones were modeled using three-dimensional wireframing techniques based on a distribution of drill intersections ranging from less than 25 metre spacing on 40 metre drill section intervals (or closer) through to drill spacings in excess of 80 metres by 50 metres. The wireframe interpretations formed the basis for the construction of a block model as well as the constraining of samples for geostatistical analysis and grade estimation.
Due to the structural complexities inherent in the geological interpretation, a prototype block model was constructed with cells of 5 m x 5m x 5m (XYZ). This allowed the identification of the various mineralized zones and distinguished the broader non-mineralized felsic dykes that are expected to be selected as waste during mining.
Grades for copper, zinc, gold, silver, lead and iron were estimated within primary and weathered horizon control using Ordinary Kriging after compositing the assay intervals to 1.5 m down-hole lengths. Where necessary, a limited number of high grade caps, as determined from statistical and spatial distributions, were applied to reduce the impact of grade bias during estimation. Search ellipsoid dimensions and orientations were determined on structural geological and geostatistical information. Density values were calculated for blocks based on regression formulae for iron, copper, zinc and lead estimates. Reporting of the resource estimates is based upon a 15 m x 15 m x 5 m (XYZ) resolution.
The interpreted mineralized zones were categorized for resource classification as Measured, Indicated or Inferred in a series of steps. Each zone was reviewed in the context of the spatial distribution of drill intersections used to model and estimate grades for that zone, with due consideration for the known geological and geostatistical continuities and confidences in the base data and geological interpretations. On this basis the relatively densely drilled (approximately 25 metre x 25 metre) eastern primary zone received Measured status while, in general, areas with 80 metre x 80 metre spacing, and in some cases greater, were allocated to the Inferred category. Indicated categories applied where drill spacings were generally 40 metres.
The preliminary classified block model was then reviewed to determine the potential economic viability in open pit and underground mining scenarios. Firstly an optimized pit shell derived using metal price parameters at a premium above long term prices (copper $US5.60 per pound, gold $US2,300 per ounce, zinc $US1.60 per pound and silver $US37 per ounce) were used to identify potential open pit material and further material beneath the conceptual open pit was considered to be potentially mineable by underground methods.
Michael Hopley, President and CEO of Sunridge Gold Corp. is the Qualified Person responsible for the contents of this press release and has reviewed the information in the release and confirmed that it is consistent with that provided by the independent Qualified Person responsible for the resource estimate, Andrew F. Ross of Snowden.
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 currently has approximately 117 million shares outstanding and approximately $7 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 www.sunridgegold.com or call Greg Davis at the numbers listed below.
SUNRIDGE GOLD CORP.
Michael Hopley Michael Hopley, President and Chief Executive Officer
For further information contact:
Greg Davis, VP Business Development
Email: firstname.lastname@example.org Tel: 604-688-1263 (direct)
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This news release contains forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterized by words such as plan, expect, project, intend, believe, anticipate, estimate, suggest, indicate and other similar words or statements that certain events or conditions may or will occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Such factors include, among others: the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans to continue to be refined; possible variations in ore grade or recovery rates; accidents, labor disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing; and fluctuations in metal prices. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.