Sunridge Gold Mine Eritrea

Vancouver, British Columbia: Sunridge Gold Corp. announced today in a press release that an independent preliminary economic evaluation of the Emba Derho copper, zinc and gold deposit in Eritrea was positive. The independent assessment was done by Wardrop Engineering Inc., which is a subsidiary of the Tetra Tech Group.

The experts have estimated that the deposit would provide 4 million tonnes of Ore with a life span of 10.4 years and that it might be possible to extend the mine life. Ore is a mixture of minerals, from which on or more metals such as copper, zinc or gold may be extracted.

Further, it is said that a special plant could process annually 55,000t zinc, 25,000t copper, 20,000oz gold and 0.6moz silver. The rate of return on the investment of $331.8 million with sustaining capital of $67.3 million has been estimated to 21.6% with 4 years payback.

The independent consulting company has suggested that Sunridge Gold moves on to the next stage in the Emba Derho project and possibly considers the extension of the exploration area, due to a big exploration potential in the region.

In addition, Wardrop believes that cost measures such as using the existing Eritrean railway line to transport minerals to the port of Massawa or sharing the costs of port facilities with Nevsun Resources could increase profitability.

The CEO of Sunridge gold believes that the study reveals a big potential of the deposit to become a large base metal producer. He further acknowledges the big support of the Government of Eritrea and the local community.

Moreover, he points out, that an excellent local infrastructure with paved roads, power and water supply as well as the short distance to the port of Massawa will help to move to production in a relatively short period of time.