Sunridge Gold announced that the initial 5,000 meter diamond drill program on the Besakoa copper/zinc/gold volcanogenic-massive-sulphide (VMS) project in Madagascar is now complete. The emerging gold Company noted that core samples have been shipped to the laboratory and assay results are expected next month.
Sunridge also reported that it notified the owners of the project, Majescor Resources, that it has completed its $2 million work obligation on the property and has issued 300,000 Sunridge common shares to Majescor. In addition, Sunridge confirmed its intention to gain a 50% ownership of Daraina Exploration S.A.R.I. – the owner of the Besakoa Project – under the terms of the September 15, 2008, option agreement with Majescor.
* The recently completed drill program tested a number of high-priority VMS-style targets
*The targets have been defined by Sunridge personnel using airborne and ground geophysical surveys, soil geochemical surveys, geological and structural mapping and VMS gossan prospecting
* Sunridge has the right to acquire an additional 25% (aggregate 75%) of Daraina by spending an additional $2.5 million by September 15, 2012, and by issuing Majescor an additional 500,000 Sunridge common shares
* Upon acquiring a 75% interest in Daraina, Sunridge will have a one-year period in which to elect to acquire the remaining 25% interest at the fair value determined at that time by an independent valuation or as agreed between the parties
David Daoud, Sunridge’s Exploration Manager:
“We are very happy that the initial drill program at Besakoa has started. We are eager to drill test the nine high-priority targets as they look very similar to VMS deposits on the Company’s Asmara Project and Nevsun’s Bisha Project in Eritrea. We believe the drill program will show Besakoa to be a new VMS district in Madagascar.