Sunridge Gold Announces Mining Agreement with Eritrea
By Jamie Ashcroft
Sunridge Gold (CVE:SGC) told investors that its 60% owned joint venture Asmara Mining Share Company (AMSC) has signed a mining agreement with the Eritrean Ministry of Energy and Mines.
As a result Asmara will now be issued three mining licenses.
Those licences will cover four advanced areas - called Emba Derho, Adi Nefas, Gupo Gold and Debarwa - which together combine to make the Asmara copper-zinc-gold project.
AMSC will also receive exploration licences spanning 83 square kilometres, which include the Adi Rassi copper-gold deposit and the Kodadu gold deposit.
“We are very happy to have achieved this major milestone,” said Sunridge chief executive Michael Hopley.
It comes after several years of work, which included a feasibility study and SEIA. Hopley added that the licence awards are a validation of the work carried out by the company.
“These Mining Licenses will allow AMSC to move forward with all plans for the Asmara Project including the completion of the financing plans for Phase 1 – the mining and shipping the direct shipping ore (DSO) from Debarwa.”
The agreement gives AMSC the exclusive rights to conduct mining operations within the license areas for a 20 year term.
It will also allow AMSC to continue to secure debt financing to fund the development of Phase 1A.
At the moment several financing options are under consideration, Sunridge said.
Development work is now expected to start within six months, once the licence has been awarded, and commercial production must follow 36 months after that.
AMSC expects to start the extraction and transport of direct shipping ore (DSO) by the third quarter of next year (2016). The DSO zone, which is located in the Debarwa area, comprises 116,000 tonnes of high grade material; containing 39mln pounds of copper, 11,000 ounces of gold and 286,000 ounces of silver.
Sunridge added that there appears to be a significant interest from smelters and metal traders in lower grade DSO, which represents a significantly larger volume of additional ‘tonnage’.
In Toronto, Sunridge Gold shares advanced 6.45% to 16.5 cents at 2:15 p.m.
Sunridge Gold Announces Mining Agreement with Eritrea Reviewed by Admin on 3:22 PM Rating: