Sunridge Gold Advances by 215.4% gain

Development News
Sunridge could rival Nevsun?

The Next Nevsun Resources (NSU)? Sunridge Gold Advances Asmara project

By Gold Alert

Now that Nevsun Resources’ (NSU) Bisha Gold Mine has successfully reached the production stage, investors have turned their sights toward another emerging gold company in Eritrea, Africa – Sunridge Gold (SGC.TSXV). 

While shares of Nevsun have surged 192.5% over the past year, Sunridge has bested its Eritrean neighbor, posting a 215.4% gain.

Sunridge Gold has provided its investors with significant leverage to the price of gold by advancing its suite of gold projects.  The company has successfully defined four independently estimated 43-101 mineral deposits on the Asmara Project, host to $8.5 billion of in-situ gold, copper, zinc, and silver and current spot prices. 

In total, the Asmara Project contains indicated resources of 1.05 million gold ounces, 1.28 billion pounds of copper, 2.5b pounds of zinc, and 31.2 million ounces of silver.

This afternoon, Sunridge announced that it has engaged Snowden Mining Industry Consultants Inc. and GBM Minerals Engineering Consultants Ltd. to conduct a prefeasibility study on its combined Emba Derho, Adi Nefas and Gupo copper-zinc-gold deposits – collectively called the Asmara North deposits. 

Based in Vancouver, Canada, Snowden is an internationally respected leader in resource estimation and mine design.  Snowden will manage the study and be assisted by GBM, an engineering firm with design expertise in process plant and infrastructure.

Sunridge noted that the prefeasibility study will evaluate a centralized process plant using flotation for the recovery of the base metals, and will consider several mining options over a 10-14 year forecast life of mine.  The study will also examine process options for the development of a gold recovery plant to process gold mineralized material from the “gold cap” at the Emba Derho deposit, the nearby Gupo gold deposit and other possible nearby surface zones of gold mineralization to enhance economics of the deposits.  Completion of the prefeasibility study is expected in the fourth quarter of 2011.

Commenting on the announcement, Sunridge Gold’s VP Projects, Scott Ansell, stated that “The Snowden-GBM-Knight Piesold team bring strong mine and process design experience for completion of a successful prefeasibility study. This prefeasibility study will provide the direction of development of the Asmara North deposits to production.”

With Sunridge’s recent share price appreciation, its market capitalization has climbed to approximately C$145 million.  For the sake of comparison, Nevsun Resources (NSU) has a market cap of C$1.2 billion.  The substantial difference in size of these two companies may be an indication of Sunridge’s growth potential as it continues to work toward reaching the production stage. 

Looking ahead, while shares have Sunridge have bested Nevsun (NSU) over the past year, if Sunridge is able to bring Asmara to production, its outperformance of Nevsun could accelerate in coming quarters and years.