Sunridge Gold Corp. (SGC:TSX.V/SGCNF:OTCQX) announces that the initial 5,000 metre diamond drill program on the Besakoa copper/zinc/gold volcanogenic-massive-sulphide (VMS) project in Madagascar is now complete. Core samples have been shipped to the laboratory and assay results are expected next month.
In addition, Sunridge has notified the owners of the project, Majescor Resources Inc. (“Majescor”), that it has completed its $2 million work obligation on the property, has issued 300,000 Sunridge common shares to Majescor and confirms its intention to gain a 50% ownership of Daraina Exploration S.A.R.I. (“Daraina”) 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 which have been defined by Sunridge personnel using airborne and ground geophysical surveys (electromagnetics, magnetics, gravity and audio-magneto-tellurics) soil geochemical surveys, geological and structural mapping and VMS gossan prospecting. Geologically the property is underlain by Neoproterozoic volcano-sedimentary shield rocks, a geological setting similar to the company’s deposits in Eritrea where Sunridge has been successful in defining large amounts of copper, zinc and gold in a series of VMS deposits.
The Besakoa property covers over 60 square kilometres and is located in south central Madagascar and can be accessed by road from the port city of Toliara.
Sunridge has the right to acquire an additional 25% (aggregate 75%) of Daraina by spending an additional $2,500,000 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. Once agreed, Sunridge can pay the purchase price in cash or, at the election of Sunridge, in the equivalent value of Sunridge common shares subject to regulatory approval. If Sunridge acquires a 100% interest in Daraina, Majescor retains a 1% net smelter return royalty on the Besakoa project, half of which can be purchased by Sunridge for $1,000,000. If the Besakoa project is brought into commercial production, Sunridge will be obliged to pay the original owners of the project $1,000,000.
Michael J. Hopley the President and Chief Executive Officer of Sunridge is the Qualified Person for Sunridge and he is the person responsible for preparation of the technical information contained in this news release.
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 trades on the TSX Venture Exchange under the symbol SGC and OTCQX under the symbol SGCNF. 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.
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.