Sunridge Gold Completes Initial Resource Estimate For Adi Rassi Copper-Gold
Deposit, Asmara Project, Eritrea
Dec 7, 2012
<
http://www.sunridgegold.com/s/PressReleases.asp?ReportID=559999>
http://www.sunridgegold.com/s/PressReleases.asp?ReportID=559999
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Sunridge Gold Corp. ("Sunridge" or the "Company") (TSX.V:SGC; OTCQX:SGCNF)
reports that it has completed an initial independent NI43-101 and JORC
compliant mineral resource estimate for the Adi Rassi copper-gold deposit
located on the Asmara project, Eritrea.
HIGHLIGHTS:
* Inferred Mineral Resource of 15.77 million tonnes with an average
grade of 0.54% copper and 0.33 g/t gold
* Contained metal = 189,060,000 pounds of copper and 167,000 ounces of
gold
* The resources area is open for expansion in most directions
* Less than 10 km from Debarwa deposit and paved road access
* Positive initial metallurgical results
* Further expansion drilling planned in 2013
Adi Rassi is the fifth mineral resource defined by Sunridge on the Asmara
Project. On May 2, 2012, Sunridge announced the results of a prefeasibility
study ("PFS") on the other four deposits (Adi Nefas, Emba Derho, Gupo and
Debarwa) that concluded that the optimum economic scenario is to construct a
single centralized processing plant near the Emba Derho deposit. A
feasibility study is now underway and is scheduled for completion in April
2013.
Initial results from ongoing testwork by Blue Coast Research suggest that
copper, gold and silver can be successfully recovered from the mineralized
material at Adi Rassi by standard flotation methods, which is compatible
with the recovery processes with the other deposits on the Asmara project.
"The defining of a fifth deposit by Sunridge continues to show the prolific
nature of the Asmara Project area. We are pleased with this initial mineral
resource estimate for the Adi Rassi deposit based on just twenty-two new
drill holes by Sunridge and believe that further drilling will significantly
expand and upgrade the mineralization." states Michael Hopley, President and
CEO of Sunridge. "Metallurgical test work continues, but initial results
show that the copper and gold can be successfully recovered by standard
flotation methods compatible with the process to be used in the mine plan
currently being examined in the feasibility study".
Adi Rassi Mineral Resource Statement - David G. Thomas P.Geo., of Fladgate
Exploration Consulting Corp. ("Fladgate") Effective Date December 1, 2012
Inferred Mineral Resource
Tonnes
('000)
Grades
Contained Metal
Copper
(%)
Gold
(g/t)
Silver
(g/t)
Copper
('000 lbs)
Gold
('000 lbs)
Silver
('000 oz)
Open Pit (0.21% Cu Eq cut-off)
14,940
0.54
0.30
1.5
176,640
143
721
Underground (0.72% Cu Eq cut-off)
840
0.67
0.89
1.5
12,430
24
40
Total
15,770
0.54
0.33
1.5
189,060
167
761
*Cut-off calculation is based on prices and costs provided by Sunridge. The
open pit Inferred mineral resource is reported at a copper equivalent
cut-off of 0.21% within a Lerchs-Grossman resource pit shell optimized on
copper, gold and silver grades with metal prices of $3.75/lb of copper,
$1,700/oz gold and $32/oz silver. Assumed metallurgical recoveries are 95%,
70% and 70% for copper, gold and silver respectively. Mining costs are
assumed to be $1.75 /t. Underground Inferred mineral resources are reported
at a copper equivalent cut-off of 0.72% within a grade shell based upon an
underground mining cost of $40/t. The contained metal figures shown are in
situ. No assurance can be given that the estimated quantities will be
produced. All figures have been rounded to reflect accuracy and to comply
with securities regulatory requirements. Summations within the tables may
not agree due to rounding. Fladgate undertook quality assurance and quality
control studies on the mineral resource data for the Adi Rassi project.
Fladgate concludes that the collar, survey, assay and lithology data are
adequate to support mineral resource estimation. CIM Definition Standards
describe that Mineral Resource Estimates are not Mineral Reserves and do not
have demonstrated economic viability. There is no certainty that all or any
part of the Mineral Resource will be upgraded to Indicated or Measured
mineral resources categories or that it will be converted into Mineral
Reserve until the required studies have been completed. The quality and
grade estimates of reported Inferred mineral resources are uncertain in
nature and there has been insufficient exploration work to define the
Inferred mineral resources as Indicated and Measured mineral resources and
it is uncertain if further exploration work will result in upgrading them to
Indicated or Measured mineral resource categories.
Adi Rassi Geologic Background
The Adi Rassi mineralization is distinctly different to Sunridge's four
other deposits on the Asmara Project; three of the deposits are
volcanogenic-massive sulphide (VMS) deposits (Emba Derho, Adi Nefas and
Debarwa) or remobilized gold only (Gupo Gold). The mineralization at Adi
Rassi is considered to be remobilized copper and gold from a distal source,
possibly unidentified buried VMS mineralization.
Mineralization at Adi Rassi is associated with a major shear zone that
trends northeast for over 3 kilometres and dips steeply to the west. The
copper and gold mineralization is hosted in strongly foliated and distorted
altered mafic volcanic tuffs. Mineralization has now been defined for over
450 metres north-northwest oriented strike length, 40 to 100 metres in width
and to a vertical depth of 360 metres. (see map at the end of this news
release). The mineralized zone dips steeply to the west and is off-set by an
east-west oriented fault. The zone remains open in depth, to the north and
possibly to the south; additional exploration potential exists along the 3
kilometre length of the host shear zone. A program of expansion drilling,
trenching and local mapping and sampling is planned for 2013.
Methodology
The mineralization on which the Adi Rassi Inferred mineral resource estimate
is based extends over a strike length of 400 metres and a width of up to 80
metres and has been drilled to a maximum vertical depth from surface of
approximately 360 metres. The Inferred mineral resource has been estimated
using 26 exploration drill holes consisting of 22 diamond drill core holes
by Sunridge and 4 diamond drill holes from a previous operator. Assays of
split core samples have been used in the estimation of mineral resources.
Sectional interpretations of the mineralized zone were completed on
east-west sections spaced between 20 m and 50 m apart using a nominal 0.1%
Cu threshold. The interpretations were linked together to form a wireframe
representing the mineralization. The wireframe interpretations formed the
basis for the construction of a block model as well as selecting composites
for geostatistical analysis and grade estimation. A block model was
constructed in MineSight mining software with cell dimensions of 5 metres
(X) x 5 metres (Y) x 5 metres (Z).
Grades for copper, gold and silver were estimated within the mineralization
wireframe using Ordinary Kriging after compositing the assay intervals to 6
metre down-hole lengths within the mineralized wireframe. Gold grade
estimates were further constrained with a probabilistic model to prevent
over-projection of the higher grades into lower grade areas.
Search ellipsoid dimensions and orientations were determined on structural
geological and geostatistical information. An average density (specific
gravity) value of 2.825 was assigned to blocks based on 592 density
measurements provided by Sunridge.
The blocks falling within the mineralized zone were categorized for mineral
resource classification as Inferred if the nearest composite fell within a
distance of 100 m.
Inferred mineral resource estimates reported for Adi Rassi are constrained
by a conceptual pit shell in order to assess reasonable prospects of
economic extraction. Parameters used in the generation of the Whittle pit
shell are: gold price = US$1,700/ounce; copper price = US$3.75/lb: silver
price US$32/oz; mining cost = US$1.75/tonne; processing cost (including
administration cost) = US$16.50/tonne; copper recovery = 95%, gold recovery
70%, silver recovery 70%; pit slope angle = 50 degrees. The process
recoveries, metal prices and ore based costs (processing and G&A) were used
to calculate a marginal copper equivalent cut-off of 0.21%. Mineralization
exists below the conceptual pit shell. An ore based underground mining cost
of $40/tonne in addition to the processing costs were used to define a
copper equivalent cut-off of 0.72%. Fladgate assessed the reasonable
prospects of economic extraction of this material by creating a grade shell
at a 0.72% copper equivalent threshold. Isolated blocks were removed from
the material reported as Inferred mineral resource.
Qualified Person:
Michael Hopley, President and CEO of Sunridge Gold Corp. is the Qualified
Person responsible for the contents of this press release and has reviewed
and verified the scientific and technical information in the release and
confirmed that it is consistent with that provided by the independent
Qualified Person responsible for the Inferred mineral resource estimate,
David G. Thomas P. Geo., Associate Geologist with Fladgate Exploration
Consulting Corp.
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 and exploration properties
in Madagascar. Sunridge currently has approximately 175,162,728 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 <
http://www.sunridgegold.com>
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: <mailto:greg_at_sunridgegold.com> greg_at_sunridgegold.com
Tel: 604-688-1263 (direct)
Received on Fri Dec 07 2012 - 22:37:22 EST
