VANCOUVER, British Columbia--(BUSINESS WIRE)--
Sunridge Gold Corp. (the “Company” or “Sunridge”) (SGC: TSX.V/SGCNF:
OTCQX) is pleased to report that it has received updated values from the
financial model for the Asmara Project Feasibility Study (the “Study”)
which increased the Base Case post-tax net present value (“NPV”) from
$345 million to $428 million. The increased numbers are based on the
Company receiving clarity on the tax laws of Eritrea, specifically the
application of historic expenditures and depreciation in the financial
model. The pre-tax value of $692 million for the Study remains
unchanged. The results of the Study were initially reported on May 28,
2013 and amended on August 21, 2013.
The Study demonstrates that the mining of all four advanced deposits
that make up the Asmara Project (Emba Derho, Adi Nefas, Gupo Gold and
Debarwa) and processing of the ore near the large Emba Derho deposit is
economically robust with a pre-tax NPV (using a 10% discount rate) of
$692 million and a post-tax NPV (10% discount rate) now at $428 million.
The new post-tax number is a significant increase of $83 million from
the original post-tax NPV (10%) of $345 million.
The following outlines the Base Case Highlights from the Study.
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NPV of $692 million at a 10% discount (pre-tax)
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NPV of $428 million at a 10% discount (post-tax)
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Internal rate of return (IRR) – pre-tax 34%, post-tax 27%
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Base Case metal prices used - $3.25/lb copper, $1.00/lb zinc,
$1,400/oz gold, $25.00/oz silver
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Feasibility Study Report
An amended Asmara Feasibility Technical Report which incorporates the
updated application of Eritrean tax laws is being completed by lead
engineering company SENET with support from Snowden Mining Industry
Consultants Inc. on resource estimation, mine design, mine planning and
economic modelling in addition to work by Knight Piésold Ltd. on water
and waste management design. Blue Coast Metallurgy Ltd. directed
metallurgical test-work. The new report will be filed on the Company’s
profile on www.sedar.com
within 30 days of this press release.
Qualified Person
The Asmara Feasibility was completed by lead engineering company SENET
under the direction of Pieter Theron Projects Director and approved by
Neil Senior, Pr.Eng, an Independent Qualified Person within the meaning
of NI 43-101.
Michael Hopley, President and CEO of Sunridge Gold Corp. is the
Company’s 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 Study.
ABOUT SUNRIDGE:
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. Sunridge currently has
approximately 210 million shares outstanding and 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 number listed below.
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SUNRIDGE GOLD CORP.
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“Michael Hopley”
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For further information contact:
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Michael Hopley, President and Chief Executive Officer
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Greg Davis, VP Business Development
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Email: greg@sunridgegold.com
Tel: 604-688-1263 (direct)
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Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
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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. Forward looking statements may include
the timing and success of any application for a mining license or of
debt financing and completion of definitive documentation with ENAMCO.
Risk and uncertain 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, labour
disputes and other risks of the mining industry; delays in obtaining
governmental approvals, a mining license, or debt financing,
uncertainties in negotiating commercial arrangements with government
entities; 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.