South Boulder Mines Eritrea

By Tim Boreham, The Australian

We suggest that 99 per cent of the room wouldn’t raise their arms, and those who do are fibbers or fertiliser tragics. Given the Big Australian’s ballsy ploy, we’ll be hearing much more about the potassium-rich substance that is as crucial to growing food as phosphate.

For the uninitiated — that is, the 99 per cent — potash is the catch-all name for various potassium salts. Most fertilisers consist of three core elements — nitrogen, phosphate and potassium — with the consistency varying according to the type of crop.

Potash global consumption stands at 50 million tonnes a year and unlike most raw materials Australia doesn’t produce an ounce of it. Production is dominated by Russia’s Silvinit and Uralkali, rumoured merger partners that account for more than half of global production. Traditionally, Germany has been the leading producer.

South Boulder Mines (STB) chief Morry Hughes says there are barriers to developing potash deposits, including their depth: the last new mine started in Germany in the late 1980s. But on the plus side they’re usually uniform in quality and also extensive. Potash Corp, the biggest single producer, acts as oil’s equivalent of an OPEC swing producer, curtailing or increasing production according to demand trends.

The global potash price has been favourable, hovering at about $US340 a tonne. This compares with the average $US620 a tonne at the 2008 peak, but is well up on the $US175 a tonne level of 2006.

As with phosphate, potash pricing was meant to be immune from the global financial crisis, despite the perception that fertiliser is immune from the cycles because everyone has to eat.

In truth it is more complicated: corn and palm oil growers created a spike in demand when oil prices soared because their product was being used for biodiesel.

Locally, there are three or four resource juniors playing in potash, although not necessarily exclusively in that commodity.

South Boulder Mines has been better known for its Duketon nickel venture in Western Australia with Independence Gold, but it’s also appraising its “world class” Colluli potash project in Eritrea.

South Boulder had a tenement at Lake Disappointment, next to fellow potash hopeful Reward Minerals (RWD), but native title difficulties sent the company scouring the world.

It settled on the emerging mining province of Eritrea, where potash has been used for centuries.

“We have been involved in potash for some time, which not many people have given us credit for,” Hughes says.

But with BHP getting into potash in a humungous way there are more investors coming on board. He estimates between 20 per cent and 25 per cent of South Boulder’s share base has been attracted by potash.

In a 50-50 venture with Rum Jungle Uranium, Reward is working two exploration leases over a 150km expanse in central Australia, from Lake Amadeus to Karinga Creek.

“An analogous model would be the Great Salt Lake in Utah, the largest potassium sulphate producer in the US, [or] the Dead Sea.”

Speaking of Utah, Transit Holdings (TRH) has earned a 75 per cent interest in a tenement spanning 390sqkm, in the state’s sparsely populated southeast. The parties are aiming for an “exploration target” of 2.3 billion tonnes.

Completing our potash troika, Elemental Minerals (ELM) recently started drilling on its Sintoukola project in the Republic of Congo, part of a four-year effort to take it to bankable feasibility stage.

In 2010 football was the name of the game on the African continent and history in the making with the first FIFA Football World Cup held in South Africa.

Football has become a “world religion” bringing nations together on the pitch and off the pitch. Who would have thought that alone supermarket giant Sainsbury’s would sell an African instrument, “Vuvuzela”, once used to summon distant villagers to attend community gatherings, over 50.000 times in the UK.

Africa is not only made out of South Africa and so football history continued to be written also in Eritrea, a small African state on the red sea, where the young nation hosted the CECAFA under-20 tournament. The CECAFA theme was Development and Friendship and took place in Eritrea’s capital Asmara from the August 14 to August 28.

Teams from nine African nations, including Eritrea, received a warm welcome by  Mr Tesfay Gebreyesas president of the Eritrean National Football Federation. Eritrea, the hosting country delivered a successful cup with organizers squeezing the best out of resources available, it proved again Eritrea can make it even during difficult times.

President of CECAFA Mr Leodegar Tenga praised the Government, Football Federation and the people of Eritrea for their hospitality. He continued on by saying

“This tournament will not only stimulate the development of football in this region, but it will also renovate social, economic development of our people and foster friendship”.

The tournament was overall packed and tickets for matches sold out, hotels were full with African nation’s contestants and streets were decorated with banners all over the place.

Eritrean fans were on the streets chanting “Eritrea, Eritrea Eritrea” full of excitement and roads packed with cars sounding there horn. Although, Eritrea came second behind cup winner Uganda and 4 players of the national team of Zanzibar had to be disqualified because of overage the cup was a major achievement for the team and Eritrea.

Shabait, Asmara, 28 August 2010 – The 5th CECAFA Cup under 20 tournament that was conducted here in Asmara concluded today with the Ugandan national soccer team as winner.

In the final matches that took place today between the Eritrean and Ugandan national teams, the two teams drew 1-1 in both the regular and additional time. In the subsequent penalty kicks, the Ugandan team beat the Eritrean team 5-3, thus emerging as the champion.

Also in the matches conducted earlier between the Kenyan and Rwandan national teams for ranking, the Kenyan team defeated its counterpart 1-0 and assumed the 3rd position.

In the course of the two-week tournament under the theme: “Development and Friendship”, the national soccer teams of Eritrea, Tanzania, Sudan, Kenya, Somalia, Uganda, Rwanda and Zanzibar, as well as the invited Yemeni team took part.

Eritrea

In a recent Exploration+Processing Magazine editorial, Stacy Davidson describes Eritrea with its 620 miles of coastline along the Red Sea as a historic centre of attention for various foreign powers, including the Ottoman Empire, Egypt, British Empire and Italy.

Nevertheless, Eritrea received the most attention from its larger neighbour Ethiopia, causing 30 years of oppression from the early 1960s to 1991 during the Ethiopian reign over Eritrea.

Eritrea fought a long and bitter independence war against Ethiopia and soon after the struggle had to face the challenge of rebuilding most of its shattered infrastructure and economy to serve the people of a new nation. According to Davidson, it was around this time that a Canadian gold and base metal explorer by the name of Nevsun Resources Ltd. shifted its focus towards southern Africa.

Nevsun’s history dates back to its founding year in 1965 in Vancouver as a minor exploration entity working on small mining projects geographically limited to North America. Nevsun’s expansion to markets abroad began in 1993 when it successfully started to identify properties with significant potential in Africa. The Kubi project in Ghana, under an agreement with Anglogold Ashanti, and Tabakoto mine in Mali were Nevsun’s first overseas ventures in 1999 and 2004. Both properties were sold between 2007 and 2008 as Nevsun wanted to focus solely on Eritrea, according to Nevsun CEO Cliff Davis.

In 2003 Nevsun made a discovery at Eritrea’s Bisha property, and it soon become apparent the Nevusn and the government of Eritrea would have a mutual interest to develop the property. Nevsun says that Bisha will be the first mine operating since colonial times in Eritrea and acknowledges the commitment of Eritrea’s President Isaias Afewerki to develop a mining industry to pursue Eritrea’s economic rehabilitation. The government holds a 10 percent free participating interest in the Bisha Mine and a 30 percent paid participating interest through the Eritrean National Mining Corporation (ENAMCO), which is a state owned mining company.

Eritrea’s government’s objective is to have a clean well-developed mining industry and Nevsun has not experienced any kind of corruption or underhanded dealings, says the company. “We got into Africa in 1993 and in 1997 received an enquiry about investing in Eritrea,” Nevsun CEO Cliff Davis recalls. “By 1999, we were actively engaged in Eritrea and exited about the potential we saw there.” Today Nevsun is nearly finished with the construction of the Bisha Mine and expects it to be in operation by the end of 2010. The Bisha project is a large precious and base metal-rich volcanogenic massive sulphide deposit, and it is fully financed and permitted. Nevsun says the mine will be a low cost gold producer for the first two years of its 10-plus mine life time.

The company expects to return payable metals of: 1.06 million ounces gold, 9.4 million ounces silver, 734 million pounds copper, and 1 billion pound zinc. Nevsun highlights that drill hole intersections have encountered mineralization to a maximum tested depth of 1300 feet, but further resource potential exists beyond depth and from nearby discoveries within the company’s licensed areas. Further, it believes that the mine life of Bisha could be far more than 10 years based on evidence from potential resources deep inside the Bisha mine.

Nevsun’s CEO projects that the company will employ at least 350 local employees and 50 expats when Bisha will reach full operational capability. He ads that Nevsun is employing around 600 local people and 100 expats during the current construction phase and committed to train and develop locals due to a lack of skilled human resources in the country. Nevsun has developed three scenarios of economic estimates from the mine, based on three types of metal prices:

1. With low metal prices, the company projects a 20 percent internal rate of return, payback within 2.8 years and $426 million net cash for mine’s life.
2. With medium metal prices, the company projects a 45 percent rate of return, payback within 1.6 years and $1.1 billion net cash for mine’s life.
3. If metal prices are high, it plans with 63 percent internal rate of return, payback within 1 year and $1.75 billion net cash for mine’s life.

In addition Nevsun continues to work at the nearby Harena deposit, which is within its current mining licence, to define its potential as mill feed for the Bisha plant. There are also plans to drill at other potential targets on the property, along with continued prospecting, mapping, sampling and ground geographical surveys in order to identify new targets within its license.  However, right now the company is focused on getting its Bisha plant into production according to its CEO.

By Charles Wyatt (Minesite) – Not very often we start a mining article with a combined geography/history lesson, but in this case the only way to make sense of the recent moves by a number of mining companies into Eritrea is to understand exactly where the country is, what surrounds it, and what has been going on there.

The region is described loosely as the Horn of Africa but a close look at a map shows that the real Horn juts out south of Djibouti into the Gulf of Aden and largely consists of Somalia, with Ethiopia to its west and north. Djibouti has coast along the Red Sea and Somalia has a massive coastline in the Gulf of Aden as well as the Indian Ocean. That is where the pirates lie in wait for their victims, remember?

Ethiopia, however, has no coastline at all and that is why it has for generations made a pest of itself to Eritrea which cuts it off from the Red Sea, running all the way up from Djibouti to Sudan, with Egypt a bit further to the north.

Before the Second World War Eritrea was an Italian colony, but was taken over by the British in 1941. Once the war was over, in 1952, the United Nations decided to establish it as an autonomous entity federated with Ethiopia as a compromise between Ethiopian claims for sovereignty and Eritrean aspirations for independence. Ten years later the Ethiopians tried to annex it, triggering a war which lasted for more than 30 years. The result was victory for Eritrea which declared independence in 1993, leaving Ethiopia landlocked. The two countries hardly became good neighbours, with the issues of Ethiopian access to the Eritrean ports of Massawa and Assab, and unequal trade terms, souring relations. In 1998 there was another flare-up that lasted a couple of years and again it was Ethiopia trying to get access to the Red Sea.

Since 2000 there has been an uneasy peace, with Eritrea trying to rebuild its economy after a devastating period of war. It sits, however, in a difficult area and every time there were problems in Sudan, Djibouti or Somalia near its border, Eritrea was held responsible by the UN. This culminated in the adoption of a package of sanctions against Eritrea last December.

What has to be seen in the background of all this is the dark art of US diplomacy. The US wanted its favoured candidate Ethiopia to have access to the Red Sea and found Eritrea much too independent for its liking. Eritrea is fighting its corner to get the sanctions lifted.

In the meantime, as Ambassador Tesfamicael Gerahtu pointed out in London yesterday, the country is straining every muscle to become self-dependent in food production and improve education and health services.

Anyone arriving in the capital of Asmara today could easily think the plane had been re-routed to Italy, according to Rupert Baring of gold explorer London Africa. There are wide streets, Italianate architecture and a coffee culture, with plentiful cafes.

The people he describes as proud, independent and honest and he has never seen any sign of the corruption endemic in so many parts of Africa. These are just some of the reasons why mining companies, big and small, are taking a serious look at Eritrea. The biggest reason of all, however, is the fact that the country is unexplored in modern times and underneath Eritrea, as well as under the other countries in the Horn of Africa, lies the Arabian-Nubian Shield which is an exposure of pre-Cambrian rocks on the flanks of the Red Sea. The Shield also crosses over into Jordan, Saudi Arabia, and Yemen. In the north it’s exposed as part of the Sahara Desert and Arabian Desert, and in the south in the Ethiopian Highlands.

The Arabian-Nubian Sheld was the site of some of man’s earliest geologic efforts, principally the Egyptians who extracted gold from the rocks of Egypt and north east Sudan. New gold discoveries have been made in Sudan, Eritrea, and Saudi Arabia. Last week Tim Goyder, executive chairman of the Australian gold explorer Chalice Gold Mines, was passing through London and he laid out a map which showed that his company’s Zara and Koka projects lie on the same pre-Cambrian shield as Centamin’s Sukari gold mine in the Western Desert of Egypt. For reasons of history and politics, the amount of modern gold exploration that has taken place in Egypt – Centamin apart – is modest, but none at all has taken place in Eritrea until recently. Someone has to be the original pioneer, and it appears to be the Canadian company Nevsun in this particular case. Nevsun is bringing its high grade gold, copper and zinc Bisha deposit into production later this year.

Tookie Angus, chairman of Nevsun, confirms that the Bisha project has received continuous support from the Eritrean government, which granted the mining licence in January 2008. Bisha will be the first modern-day mine in the country, with production slated to return over a million ounces of gold, 9.4 million ounces of silver, 734 million pounds of copper and more than one billion pounds of zinc during its life. The really interesting aspect, however, is the deal between Nevsun and the government of Eritrea. Under existing Eritrean mining legislation, the State of Eritrea has an automatic right to a free carried 10 per cent interest, but under an agreement with Nevsun it also has an additional 30 per cent paid participating interest. This 30 per cent contributing interest was agreed upon in October 2007, with a provisional US$25million payment made to Nevsun. The remaining balance to be paid to Nevsun will be determined by an independent valuator, and will be based on the net present value of 30 per cent of the project, as evaluated upon the first shipment of gold from the mine.

Not for Eritrea the black empowerment requirements of South Africa which so often end up with a 26 per cent stake in mining companies being effectively stolen by entities which have no intention of paying their way as partners. The Nevsun deal is straightforward stuff, with the Eritrean government setting out to get a significant stake in a project which should ensure it a satisfactory return. And it goes further than this. The Ministry of Energy and Mines is helping to organise a regional Geo-Conference in Eritrea in September which will showcase the potential for mining. It is especially interesting that Centamin has been invited from Egypt, La Mancha with its Hassai VMS mine, from Sudan, and Citadel which has the Jabel Sayed copper gold deposit, from Saudi Arabia. The whole region underlain by the Arabian-Nubian Shield is being represented, and little Eritrea is taking the lead. And that’s hardly what the UN envisaged when it put in the sanctions at the behest of the US.

There are now getting on for 20 mining companies active in the country. The Chinese are there, the Koreans are there, and now some of the big boys are following the juniors in. The country has a very sensible mining code, modelled on the Australian one. Antofagasta, one of the world’s largest copper producers is in a joint venture with the Canadian company Sunridge Gold on the Adi Rassi copper gold project within its Asmara project, and Anglo American is involved in the Thani–Ashanti Alliance. Newmont is also said to be taking a close look, which is another reason for the UN to reconsider its decision on sanctions. The Amir of Qatar not only owns the Asmara Place Hotel, where Brits and locals alike watch English football in the Green Bar, but is also building a summer home at Massawa overlooking the Red Sea. Eritrea, with a history that has precluded any exploration in modern times, is the new frontier and everyone is taking a look. The reaction from mining companies and fund managers alike has been universally positive, so this is likely to build up into a big story even if it is one that will not hit the headlines in the States.

Asmara, 27 April 2010 (Shabait) – The Cooperative Association of Tanners called on the general public to demonstrate proper handling of hides and skins in the view of the fact of that tannery products are important source of foreign currency earnings.

Stressing the need for living up to such responsibility so as to make the nation’s hides and skins products competitive in the world market, the Chairman of the Association, Mr. Semere Petros, said that tannery factories have introduced modern machineries and upgrading manpower so as to boost production.

Mr. Mengisteab Teklai, one of the shareholders of Dahlak Shoe Factory, on his part indicated that tannery production in Eritrea has high market demand, and that the factory has managed to export about 70,000 shoes through effectively competing with foreign factories.

Meanwhile, the manager of Asmara Tannery Factory, Mr. Michael Gebru, said that the factory has a capacity of producing about 3,000 hides and skins of sheep and goats, as well as about 500 related items of cattle.

The Tanners Cooperative Association was set up in 2001.

Asmara, Eritrea

Chalice Gold Mines (ASX: CHN) - This presentation may contain value references and “forward looking statements“ which are subject to various risks and uncertainties that could cause actual results and future events to differ materially from those expressed or implied by such statements.

Investors are cautioned that such statements are not guarantees of future performance and results.

This presentation does not include all available Information on Chalice Gold Mines Limited and should not be used in isolation as a guide to investing in the Company.

Any potential investor should also refer to Chalice Gold Mines Limited Annual Reports and to ASX releases and take independent professional advice before considering investing in the Company.

For further information about Chalice Gold Mines Limited, visit the website at www.chalicegold.com

The information in this report that relates to Exploration Results is based on information compiled by Dr Doug Jones, a full-time employee and Director of Chalice Gold Mines Limited, who is a Member of the Australasian Institute of Mining and Metallurgy and is a Chartered Professional Geologist.

Dr Jones has sufficient experience in the field of activity being reported to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves, and consents to the release of information in the form and context in which it appears here.

The Independent Resource Estimate for the Koka deposit was prepared by Mr Brian Wolfe whilst employed as a Specialist Resource Geologist for Coffey Mining Pty Ltd. Mr Wolfe, who is a Member of the Australasian Institute of Mining and Metallurgy, has sufficient experience in the field of Resource Estimation to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves, and consents to the release of information in the form and context in which it appears here.

LINK: CHALICE GOLD PRESENTATION 2010 ‘POISED FOR PRODUCTION IN EAST AFRICA’

PERTH (miningweekly.com) – Gold explorer Chalice Gold Mines expects to complete the feasibility study for its Koka project, in Eritrea, by July, the company reported on Friday.

In its quarterly results for the three months ended March 31, ASX-listed Chalice noted that field work for the environmental and socio-economic studies have been largely competed, and reporting was well advanced.

The completion of infill drilling at the Koka main site has confirmed the high-grade nature of the ore body, Chalice said, adding that these results would form part of a revised resource estimate, would be completed in the June quarter.

As part of its strategy to advance the Koka deposit to production, Chalice would apply for a listing on the TSX.

Chalice believed that a dual listing on the TSX would further raise the profile and states of the company, within the global investment community.

“A dual listing on the TSX should provide increased liquidity to the company’s current and future shareholders. In addition, it will provide increased access to the larger North American and European capital markets, as the company advances its Zara project through to production.”

It is anticipated that an application for the TSX listing would be made during the June quarter, with a view of listing shortly thereafter.

The Koka gold project has an estimated total mineral reserve of 5,04-million tons, at 5,8 g/t gold, for a contained mineral reserve of 944 000 oz. While the feasibility study was aimed for completion by July this year, Chalice was hoping to start gold production during 2011.

Wednesday, March 31, 2010 by Specialized Surgery

“And We Learned as Much as We Taught”

On April 2, 2010, we will send out a team of podiatrists and specialized surgeons to Asmara, Eritrea in partnership with Limb Rescue International. This medical mission will allow the team to continue the work they began last spring in Eritrea. During last year’s mission, team leader Dr. Keith Goss, Drs. Jennifer and Doug Paccacio and surgical nurse Jane Royalty were accompanied by a surgical resident and two medical students.

For many of the team members, it was a life-changing experience. Along with performing 59 surgeries, 34 on adults and 25 on children, the group taught and trained the staff at the hospital in Asmara on new technologies and findings in podiatry medicine.

After the first couple of days, it was no longer a surprise when the surgeons lost electrical power in the operating room. “The Asmara medical personnel just made do with what they had to finish the clinical care needed.” Many of the patients they saw suffered injuries from a 30-year civil war still ravaging the lives and limbs of innocent, unknowing villagers with buried land mines.

As for the rest of the clinical cases, the patients seen were the result of polio virus, which is still prevalent in developing countries. Foot and leg deformities are widely associated with paralytic polio, including conditions such as uneven leg length, mismatched feet, hammertoe and claw. These deformities greatly reduce a polio survivor’s mobility and thereby, their ability to independently navigate the world.

For the traveling volunteer medical team, the most heartbreaking moments occurred when they had to turn away patients they just couldn’t help. In some cases, the deformity was not treated early enough. “There’s really a global health care crisis.

About 1.3 billion people lack basic health care,” said Dr. Paccacio. “Ten percent of the world’s population gets 90 percent of the healthcare.” And while such statistics are daunting, the team agreed that “change has to start with small steps.” Dr. Doug Pacaccio adds: “You talk and talk about doing something like this and finally, one day, you just have to clear your schedule and go.”

Both Drs. Jennifer Seuss and Doug Pacaccio plan to return to Eritrea on April 2 for another two-week mission. Dr. Goss has already been in Eritrea since March 18 with one team, and will stay on as team leader for the Paccacio and Royalty mission until April 12, with plans to return for a third mission in May, 2010.

Donate today to support the education and training of Eritrean physicians to radically improve treatment capabilities. Your support will result in helping many current and future patients avoid life-long, painful disabilities. Physicians for Peace

Sunridge Gold Corp. (CA:SGC 0.44, -0.02, -3.30%) announces that PEG Mining Consultants Inc. (”PEG”) have been commissioned to conduct a Strategic Production Study (the “Study”) of mining and processing options for the four known 100% owned mineral deposits on the Company’s Asmara Project in Eritrea.

The Study will serve as a roadmap for future engineering studies and will initially focus on the possibility of fast-tracking mining and direct shipping of a small, high-grade copper section of the Debarwa copper supergene zone where grades average between 15% to 20%. (See table below under Debarwa). This scenario may represent a low capital cost production opportunity which could generate near-term cash-flow for Sunridge.

The Strategic Production Study:

Sunridge has three mineral deposits on the Asmara Project that together contain Indicated resources of 1.28 billion pounds (580,000 tonnes) of copper, 2.5 billion pounds (1,130,000 tonnes) of zinc, 1.05 million ounces of gold and 31.8 million ounces of silver. In addition the Gupo Gold deposit contains 189,000 ounces of gold in the Inferred category (see resource details below). Given recent improvements in the understanding of the metallurgy at Debarwa, the Study will initially focus on fast-tracking part of the supergene copper zone at Debarwa into production and will then lead into further levels of engineering studies at Debarwa and the other three deposits in the form of scoping/pre-feasiblity/feasibility studies. Blue Coast Metallurgy Ltd. (”BCM”) are working with PEG to determine the metallurgical compatibility of mineralization from each deposit and options for combining ore processing with the development of flowsheets.

Debarwa Copper-Gold-Zinc VMS Deposit:

The Debarwa deposit already has a shaft, headfame and two levels of underground working that were constructed by a previous company in the 1970s.

In order to minimize initial capital costs the Study will examine the potential of using some or all of these facilities to fast-track operations at Debarwa by mining and direct shipping the high-grade copper material from a portion of the supergene zone.

This zone contains 15% to 20% copper material (see below) within the larger overall supergene copper zone. The enriched copper zone is located approximately 40 meters below surface over a strike length of approximately 120 meters.

(i) Highlights of copper-gold intercepts in the copper supergene zone. Results from all these drill holes have been previously announced:

– DEBD-005 20.36 % Cu, 2.18 g/t Au, and 103.73 g/t Ag over 13.00 meters.

– DEBD-019 21.27 % Cu, 2.29 g/t Au, and 90.51 g/t Ag over 9.80 meters.

– DEBR-008-D 20.18 % Cu, 3.43 g/t Au, and 67.10 g/t Ag over 6.00 meters.

– DEBR-021-D 20.59 % Cu, 1.96 g/t Au, and 97.81 g/t Ag over 11.30 meters.

– DEBR-022-D 19.31 % Cu, 5.80 g/t Au, and 85.27 g/t Ag over 7.0 meters.

– DEBR-024-D 21.13 % Cu, 6.88 g/t Au, and 110.41 g/t Ag over 6.00 meters.

– DEBR-036-D 20.87 % Cu, 1.99 g/t Au, and 92.63 g/t Ag over 11.00 meters.

– DEBR-044-D 20.19 % Cu, 2.18 g/t Au, and 85.41 g/t Ag over 6.05 meters.

(i) These represent some of the best drill intercepts of the supergene zone at Debarwa and demonstrate the potential for direct shipment copper material. In total, approximately 120 drill holes have intercepted the supergene copper zone and of these approximately 38 intercepts have average copper intervals grades over 5%.

The January 21, 2008 MSA Geoservices (Pty) Ltd. (”MSA”) Indicated resource estimates for Debarwa are summarized as follows:

———————————————————————–

Debarwa – Indicated Resources

———————————————————————–

Zone Cut Off K-tonnes Au g/t Ag g/t Cu% Zn%

———————————————————————–

Oxide+Transition 0.5 g/t Au 2,442 1.71 13.79 0.12 0.09

———————————————————————–

Supergene 1% Cu 1,336 1.54 33.87 5.36 0.08

———————————————————————–

Primary 1% Cu 699 0.87 22.31 2.53 3.23

———————————————————————–

Totals 4,478

———————————————————————–

Emba Derho

An independent Preliminary Economic Assessment (the “PEA”) study was completed by Wardrop, a Tetra Tech Company on the Emba Derho deposit in June 2009 (see NR 2009-04) which demonstrated the strong economics of the deposit. The base case IRR is 21.6% with 4 years payback on an estimated capital cost of US$331.8 million with sustaining capital of US$67.3 million. The base case NPV is estimated to be US$203.9 million at a 10% discount rate. The base case economics were based on five-year moving average metal prices which are considerably lower than current metal prices.

The October 2008 Wardrop Indicated resource estimates for Emba Derho are summarized as follows:

———————————————————————-

Cut-off Million Copper Zinc Gold Silver

Zone grade Tonnes % % g/t g/t

———————————————————————-

Gold Oxide 0.2 g/t Au 3.51 0.06 0.04 0.84 5.14

———————————————————————-

Copper-rich Primary 0.5% Cu 38.425 1.02 0.99 0.18 9.31

———————————————————————-

Zinc-rich Primary 1.0% Zn 20.545 0.28 2.35 0.39 12.13

———————————————————————-

The PEG study will examine the economics of a stand alone operation at Emba Derho but will also examine scenarios that include Adi Nefas and Gupo Gold and a separate scenario including Debarwa. Inclusion of material from the other deposits could have a positive impact on mining operations at Emba Derho through the addition of more material and or higher grade material.

Adi Nefas

The January 21, 2008 MSA resource estimates for Adi Nefas are summarized as follows:

———————————————————–

Adi Nefas – Indicated Resources

———————————————————–

Zone Cut Off K-tonnes Au g/t Ag g/t Cu% Zn%

———————————————————–

Primary 2% Zn 2,727 2.85 99.30 1.39 8.38

———————————————————–

The Adi Nefas high grade zinc-copper-gold deposit is located approximately 6 km east of Emba Derho.

Gupo Gold

————————————————————-

Gupo Gold – Inferred Resources

————————————————————-

Tonnes Average Gold Grade g/t Ounces of Gold

————————————————————-

1,965,000 2.99 189,000

————————————————————-

The Gupo gold deposit is located 6 kilometers east of Emba Derho and could potentially be a low cost operation mined in conjunction with the Emba Derho gold cap.

Total Contained Metals

The total contained metal in NI43-101 “Indicated” category is as follows.

Asmara Project – Total Contained Metal in Indicated Resources

—————————————————-

Deposit M lbs Cu M lbs Zn K oz Au M oz Ag

—————————————————-

Emba Derho 993 1902 580 20.1

—————————————————-

Debarwa 203.6 57.0 219.8 3.0

—————————————————-

Adi Nefas 83.7 503.6 250.0 8.7

—————————————————-

Totals 1,280.3 2,462.6 1,049.8 31.8

—————————————————-

Note: Contained metal estimates are rounded and remain subject to factors such as mining dilution and process recovery losses.

Qualified Person

Michael J. Hopley, President and Chief Executive Officer of Sunridge is the Qualified Person for Sunridge and the person responsible for preparation of the technical information contained in this news release.

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 has approximately 76 million shares outstanding and approximately $6.5 million in cash. Sunridge 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 Don Halliday or Greg Davis at the numbers listed below.

SUNRIDGE GOLD CORP.

Michael Hopley, President and Chief Executive Officer

This press release contains forward-looking statements about the Company and its business. Forward looking statements are statements that are not historical facts and include resource estimates. The forward-looking statements in this press release are subject to various risks, uncertainties and other factors that could cause the Company’s actual results or achievements to differ materially from those expressed in or implied by forward looking statements. These risks, uncertainties and other factors include, without limitation risks related to fluctuations in gold prices; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Company’s properties; uncertainties involved in the interpretation of drilling results and other tests and the estimation of gold resources; the possibility that required permits may not be obtained on a timely manner or at all; the possibility that capital and operating costs may be higher than currently estimated and may preclude commercial development or render operations uneconomic; the possibility that the estimated recovery rates may not be achieved; risk of accidents, equipment breakdowns and labor disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; and other factors identified in the Company’s filings with Canadian securities regulatory authorities. Forward-looking statements are based on the beliefs, opinions and expectations of the Company’s management at the time they are made, and other than as required by applicable securities laws, the Company does not assume any obligation to update its forward-looking statements if those beliefs, opinions or expectations, or other circumstances, should change.

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.

Contacts:

Sunridge Gold Corp.

Don Halliday

Executive Vice President

604-899-1505 (direct)

donh@sunridgegold.com

Sunridge Gold Corp.

Greg Davis

VP Business Development

604-688-1263 (direct)

greg@sunridgegold.com

www.sunridgegold.com

US EMBASSY

WARDEN MESSAGE

U.S. Embassy Asmara, February 19, 2010

The U.S. Department of State warns U.S. citizens of the risks of travel to Eritrea, recommends that U.S. citizens defer travel at this time, and informs U.S. citizens that the consular section of the U.S. Embassy in Asmara is currently closed for all public non-emergency services. The Consular Section will continue to provide emergency services to U.S. citizens.

Periodically since September 13, 2008, the Government of Eritrea has repeatedly, and in violation of the Vienna Convention on Diplomatic Relations, interfered with the unfettered delivery of the U.S. Embassy’s diplomatic pouches. As a result, the Embassy is unable to receive critical supplies and materials necessary for the conduct of normal operations. Until this matter is resolved, the consular section of the U.S. Embassy has no choice but to suspend all non-emergency services.

This closure affects all routine services to American citizens, such as Consular Reports of Birth Abroad, passport services, and notarial services. The Embassy hopes to resume consular services once the Government of Eritrea resumes uninterrupted delivery of diplomatic pouches. Until then, American citizens who need routine consular services should consider traveling to the U.S. Embassies in Cairo, Egypt or Nairobi, Kenya, or the U.S. Consulate in Dubai, U.A.E.

Americans currently living or traveling in Eritrea are strongly encouraged to register with the U.S. Embassy in Asmara through the State Department’s travel registration web site, https://travelregistration.state.gov, and to obtain updated information on travel and security within Eritrea. By registering, American citizens make it easier for the Embassy to contact them in case of an emergency and provide updates on the security situations. The U.S. Embassy is located at 179 Alaa Street, P.O. Box 211, Asmara; telephone (291-1) 12-00-04; fax (291-1) 124-255 and (291-1) 127-584; web site http://asmara.usembassy.gov/.

For additional information, consult the Department of State’s Country Specific Information sheet for Eritrea and the Worldwide Caution at http://travel.state.gov. American citizens may also obtain up-to-date information on security conditions by calling 1-888-407-4747 toll free in the United States and Canada, or 1-202-501-4444 from overseas.