Mining Indaba

Mining Indaba (Mining Indaba Cape Town, February 6th– 9th, 2012) attracts mining analysts, fund managers, investment specialists and financiers from around the world.

Corporate presentations on the newest and most successful projects provide the foundation for institutional portfolio growth and asset diversification.

Government and agency presentations update policies and incentives for potential partners. Attendance is limited to professional investors and industry.

Speakers are by invitation and include top global economists, industry analysts and mining management.

Delegates who participate in the Mining Indaba conference develop essential knowledge, and experience first-hand the rewards and risks of investing in more than 130 mineral-rich countries around the world.

They personally meet the policymakers of these nations, and hear case studies of successful and unsuccessful ventures.

Mining Indaba provides companies with an ideal platform on which to build shareholder base, and with exposure to the most influential professionals specializing in natural resources worldwide. More information can be found

Mr. Michael Hopley, President & C.E.O. of Sunridge Gold will be speaking on Tuesday, February 7th, 2012 at 4:38pm in Hall 4

Also take the chance to meet Sunridge Gold Corp and Nevsun Resources Ltd.’s Cocktail Reception on February 8th, 2012 from 5:00pm to 8:00pm at the Westin Grand Cape Town Hotel in Vasca Da Gama Room.

Mining Indaba, Cape Town – Sunridge Gold & Nevsun Resources

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1. Sunridge Gold Provides update on Asmara Project Tour, Drilling Progress and Company Presentations
2. Nevsun Resources is Among the Companies in the Gold Industry With the Best Relative Performance (NSU, AZK, GOLD, JAG, ABX)
3. Nevsun Resources has the Best Relative Performance in the Gold Industry (NSU, RGLD, AUY, AU, GOLD)
4. Nevsun Resources Eritrea Annual Report 2008
5. Wickman sees value in Nevsun Resources, says The Globe and Mail

TGR: In a report, you suggest that Sunridge Gold is one of the more misunderstood stories in the junior gold sector. What misconceptions about Sunridge would you like to correct?

KAL: The biggest misconception is that Eritrea is a bad place to do business. I visited the property in November and saw firsthand that it is a very determined country working to put additional business-friendly policies in place. The people are very friendly and hard working. The United Nations Security Council clouded that view when it put further sanctions on the country in December after some neighboring countries accused it of supporting militant groups, but I think the accusations are politically motivated. Russia and China both abstained from the vote. Also, Russia went on record saying that the evidence of Eritrea’s link to the planned attacks in Addis Ababa was not conclusive.

TGR: But there is unrest in the region. Are you factoring that into a discount rate?

KAL: Definitely. Whether it’s true or not, the market does perceive additional risk in Eritrea. We only use a multiple of 0.4x our net asset value whereas other companies in our space could get from 0.5–1.0x.

TGR: What were your thoughts about the Asmara project when you visited?

KAL: It is very close to infrastructure. You can drive to the site in a matter of minutes. The topography is very supportive of open-pit mining as it is very flat with lots of room to put the mill facilities and tailings pond. It’s also very close to a willing workforce.

TGR: Are there any majors operating in Eritrea right now?

KAL: None that I know are active in the area. There are a number of Chinese companies with interest including the Shanghai Construction Group that recently bid for Chalice Gold Mines Ltd. (CXN:TSX; CHN:ASX), though the others have nothing as advanced as Sunridge or Nevsun Resources Ltd. (NSU:TSX; NSU:NYSE.A).

TGR: Does Nevsun have the cash flow to pull off a takeover?

KAL: For sure. It is producing a lot of gold at one of the lowest cash operating costs in the industry. Last year it produced about 380 thousand ounces of gold and the cash costs for the first three quarters were about $285/ounce (oz). However, I’m not sure that, if it were to expand, it would want to get another asset in Eritrea.

TGR: On the one hand, you’re saying there’s not as much risk as people think, but in this example, you are intimating that there is still a significant amount of risk there?

KAL: There is perceived risk. If a company like Nevsun has a main asset there and it’s not getting the full value that it should for it, then there’s no need to wait around for the market to clue in. It can just take its cash and go after something that the market will recognize.

TGR: What should move Sunridge stock to your 12-month target price of $1/share?

KAL: Of its four main deposits, it has combined three of them into one prefeasibility study due out in about four months. The fourth deposit, the Debarwa deposit to the south of Asmara, has a feasibility study due in the next couple of months. As the market sees that there is real economic benefit to these projects and there is a clear line to their production, Sunridge should get rewarded for that.

TGR: Debarwa is really the crown jewel here, right?

KAL: It’s the highest grade and it may be the closest to production, though I think the crown jewel is Emba Derho, with 62 Mt of VMS.

TGR: What’s the resource there?

KAL: It’s almost 600,000 oz gold, 1 Blb copper and 2 Blb zinc at Emba Derho.

TGR: What’s the estimated production timeline there?

KAL: It could be as early as 2015. After the feasibility is completed, it could start applying for its permits. Sunridge has already started talking with government officials, so I don’t think that will take as long as it has for other companies, like Nevsun.

TGR: Are there any other companies that you would like to discuss today?

KAL: It’s not one that I cover, but it is in a very stable country: Seafield Resources Ltd. (SFF:TSX.V:). It is advancing its Quinchia gold project in Colombia. It is expecting a resource update at its Miraflores deposit by the end of this month and a PEA in a few months. Quinchia currently has 2.5 Moz in global resource and with the new management appearing settled, the relative valuation and news flow makes this stock one to watch.

TGR: Do you have some parting thoughts for our readers?

KAL: Investors need to take the speculation out and do additional due diligence because it’s a stock-picking market. Investors need to look for companies that have good news flow, really good management and an asset that is good enough to put into production when they invest in it.

TGR: Thanks.

Kwong-Mun Achong Low is a mining analyst with Northern Securities with a focus on both precious and base metal equities. He previously worked at a Canadian bank owned dealer and at a U.S.-based brokerage. Achong Low obtained both his Master of Business Administration and Bachelor of Science degree in mechanical engineering from the University of Toronto.

Want to read more exclusive Gold Report interviews like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our Exclusive Interviews page.

Related posts:

1. Eritrea: Market is Overreacting, Analyst Says
2. Eritrea: Analyst Says Nevsun Resources Future Prime Takeover Candidate
3. Analyst asks, “Is Sunridge the Next Nevsun?”
4. Eritrea Mine Analyst Tour
5. Nevsun Attracts Analyst Upgrades

COMPANIES MENTIONED: AUREUS MINING INC. - CONDOR RESOURCES PLC - KIRKLAND LAKE GOLD INC. – NYOTA MINERALS LTD. – RAMBLER METALS & MINING - SUNRIDGE GOLD CORP. - TORO GOLD LTD

Christopher Welch, a mining analyst with Ocean Equities, has been crisscrossing the Atlantic for most of the last year. He tells The Gold Report in this exclusive interview that recent trips have bolstered his conviction that mining plays in Africa are being overlooked, but it’s not too late for investors to get in on the ground floor.

The Gold Report: Most of your coverage universe at Ocean Equities consists of precious metals juniors with exploration- or development-stage projects. Why do you cover these types of companies?

Christopher Welch: It’s the end of the market where our expertise has the biggest effect, particularly since my colleagues and I are either geologists or experienced industry professionals. We can look at ground where we know it’s going to be prospective. We can look at the very early-stage exploration results and know if they are encouraging.

We still cover some big, producing companies. One of our biggest companies under coverage isKirkland Lake Gold Inc. (KGI:TSX), which is a growing intermediate producer. But we’ve had such an effect on the junior exploration end because that’s where our strengths lie.

TGR: Most of your companies have sub-$100 million (M) market caps with gold and/or copper projects based in Africa, Canada or Nicaragua. What criteria do you use to choose these small-cap companies?

CW: We look at management, the ore body, exploration results, the geology of the region and country risk. We don’t have a mandate to follow specific parts of the world, although we know where we feel comfortable operating. If it’s a country where one of the research teams feels quite happy jumping on a plane, spending a few days in a tent on the ground and looking at the grassroots exploration data, that’s a country we wouldn’t mind doing business in.

TGR: You regularly go and visit these projects?

CW: Taking a job as a mining analyst is essentially getting a ticket on a plane somewhere. I’ve been crisscrossing the Atlantic for most of the last year. Our technical expertise and professional experience mean that when we get to the ground, we know what to look for. It’s not a case of taking drilling results on trust. We look at the drill core and can see what’s good. It’s a lot of gut instinct and knowing what feels right. You can look at the lay of the land and say, “Yes, I can see the deposits here. I can see that this could be an open pit or the plant could go here, and there are no environmental or social issues.” You have to get in and kick the tires to add value.

TGR: Do you believe that African mining stories are underrepresented in investors’ portfolios?

CW: Yes. Over the last 10 years, contemporary exploration techniques have been applied to parts of Africa that were considered high risk, like Eritrea, Ethiopia and Liberia. However, there have been large-scale risk profile changes in these countries.

Liberia is one of the best countries in Africa because of its transparency. There is now a combination of overlooked resources with safer governments, so it’s just another scramble to get into these countries and establish companies that can turn natural resources into profits for both the company and the host country.

If you’re not exposed to the African mining story, you haven’t missed the boat, but it’s something you should look at quickly.

TGR: Are you concerned about another Charles Taylor, the former president of Liberia accused of war crimes, coming to power in these countries after you’ve invested heavily in them?

CW: Charles Taylor’s regime was definitely a product of ignorance of the Western world to what was going on in that part of Africa. Now there is more free press in Africa and there are a lot of African businesspeople who are involved in making their countries better. I know that all the issues across Africa aren’t solved, but we won’t go to a country where we think there could be a risk. We have a very good understanding of what’s going on across Africa. African risk can’t be painted with a broad brush. Every region globally has its drawbacks. Some might say that laws in British Columbia are perhaps overly onerous on environmental licensing, for example.

TGR: An interesting company in Ocean’s stable is Sunridge Gold Corp. (SGC:TSX.V). Tell us how you came across it and why you picked that one.

CW: It’s definitely one of the more encouraging companies in that region because it’s so undervalued. I constantly ask, “Where am I going to go next to find the overlooked or the best deposit?” That part of the Arabian-Nubian Shield really comes to the fore as the most overlooked part of the globe to find volcanic massive sulphide (VMS) deposits that have good grades. They don’t always have the biggest scale, but the grade means that the mines that get developed can be quite profitable.

If you take just one of the components of Sunridge’s project portfolio, its contained zinc for example, it has a greater gross in-situ metal value than the market cap of the company. So we think that Sunridge offers great potential.

TGR: What were your thoughts after visiting the Asmara gold project?

CW: My colleague was there recently as part of a larger trip around Eritrea and was very encouraged with what he saw. He said it looked very positive. Sunridge is in the prefeasibility stage on the Asmara project, which is part of a group of projects around the capital city.

TGR: Do you think that it will spin some of those assets out into a separate company?

CW: I think it will keep all of them under the same umbrella. It doesn’t have a huge footprint in Eritrea. It’s big, but manageable. Those projects will do very well when they combine and share infrastructure. Eritrea does need a fair amount of infrastructure to get up to the standards required for the mining. The company will likely build something centralized to take concentrate from different parts of its portfolio.

TGR: Is it a takeover target?

CW: It’s definitely enticing. It has ground in a great country with great prospects. Any sort of mid-tier company that’s looking to bolt on some high-grade VMS targets and near-term gold production capacity should be looking at it.

TGR: Are there plans to take Toro Gold Ltd., a private junior with a gold project in Senegal, public?

CW: It’s something the company would like to do, but not at the expense of shareholders. It has quite a market-savvy management team. It has done exceedingly well to get its Mako project on its feet. Recent results for Mako show great grades: 3 grams of turnover into sections of up to 40 meters. It’s one of the best grassroots discoveries in that part of Africa. There are definitely plans to take it to market, but it has to be done at the right time. I hope it will be within the next 12 months, but it’s up to the company to say.

TGR: Initial tests have shown that Toro’s deposits host free gold.

CW: The bottle roll test results are very encouraging, but the ultimate metallurgical process has yet to be determined. It looks like there is very little arsenic in the area, so it should be free gold. Toro has a large amount of ground, but it still has to do early-stage reconnaissance exploration, so there’s a lot of growth there. It’s in a part of Africa, which we call the Kenieba Window, which has been overlooked.

TGR: Many of our readers follow the junior mining sector quite closely, but few would have heard ofNyota Minerals Ltd. (NYO:AIM; NYO:ASX), which is conducting a definitive feasibility study on its Tulu Kapi deposit in Ethiopia. Nyota is about to announce a measured resource for the Tulu Kapi project in H112, as well as a maiden resource for other claim blocks in the area. Tell our readers about that story.

CW: It is in the same geological terrain as Sunridge, on the western half of the Arabian-Nubian Shield, which is very old rocks that have been somewhat agitated by the rift in the area. It’s in a very geologically prospective part of the world, but it’s been overlooked simply due to the historic Ethiopian-Eritrean conflict that’s now resolved.

Nyota is progressing on its Tulu Kapi project. The new chief executive, Richard Chase, who took the reins in mid-2011, really has a good handle on what could be quite a robust open-pit project. It has a mineable grade after internal dilution of over 2 grams/tonne. Tulu Kapi is going to be quite a good story.

Nyota is also going to be the first public company to receive a mining license in Ethiopia. It put in its application in Q311. Ethiopia is very prospective, particularly parts of the western highlands. We’ve seen many major mining companies coming into the country to try and grab ground and capture the essence of the geology of Ethiopia. Nyota has this fantastic, early-mover advantage in that it has a large land package with known targets, but also it has the key to good exploration—high-level operating geologists with Ethiopian backgrounds who can go and do the grassroots exploration very well. Nyota has a great future ahead of it.

TGR: A lot of investors still perceive Ethiopia as a risk. Does it give you a measure of confidence given that a number of larger mining companies are coming into that country?

CW: Yes, it does. The Internal Finance Corp. (IFC) of the World Bank has been a shareholder in Nyota for a long time, and the IFC has perhaps one of the most rigorous sets of due-diligence tests for its investments. The area of Ethiopia that Nyota is operating is lush, green pasture. It poured with rain the entire time we were there. Ethiopia has a good future ahead of it. It acknowledges its natural resources could be a key for developing and expanding its growth prospects. Personally, I don’t think the risk in Ethiopia is that high.

TGR: What are your preferred countries in Africa for mining development?

CW: Ethiopia, Eritrea and parts of Sudan are the most overlooked for ease of operation. Mali and Burkina Faso are developing into good countries to operate in, but my pick of the bunch is Liberia.

Just to give due respect to Ellen Johnson Sirleaf, the president of Liberia, she’s done an awful lot to clean up the country. In particular, the Extractive Industries Transparency Initiative that she’s taken on board in Liberia has really set the country up to benefit from iron-ore price growth. It has potential to be the largest iron-ore producer on the continent.

Liberia also has gold in the north with Aureus Mining Inc. (AUE:TSX; AUE:AIM), which is developing the New Liberty project.

TGR: That really is fascinating given that country’s history.

CW: It just proves the point that the opportunities come up when you have on-the-ground, grassroots operating knowledge from people who go into the country and say, “Look, I know what you think about Liberia, but honestly, go, see, look. Go to the country, visit it and when you get there, you’ll see that it’s open for business.”

TGR: Condor Resources Plc (CNR:LSE) has the promising La India gold project in Nicaragua. The one eyebrow-raising fact about Condor is that it’s just a small junior with a relatively small market cap, but it has about 560M shares outstanding. Are you concerned by a management team that would allow that level of dilution?

CW: The large number of shares is just a legacy and something that the company can do something about quite easily. A chief executive has a lot of techniques in his arsenal to reduce that, and I dare say there will be some form of consolidation in the future. Condor is a company that’s changed dramatically over the last two years. It’s taken a small resource in Nicaragua and grown it to a substantial 1.6 million ounces. In 2009 Condor had a robust resource in Nicaragua but it suffered capital constraints due to the global financial crisis and then the El Salvadoran moratorium on mining. This was when it suffered the dilution. That is now water under the bridge and it is moving forward.

TGR: Perhaps the most promising part of that project is the central breccia zone. Tell us about what the company continues to find there.

CW: It’s one of the largest scale mineralizations. Condor has plenty with a narrow vein, but high-grade, gold currencies cross its property. What is going to make a huge difference for the company is finding the bulk tonnage deposits where it can do either open-pit development or larger-scale underground development.

Condor found the central breccia toward the end of last year when it put in a trench to look at the bedrock. The initial grades of that sampling were very encouraging. Subsequently, it put in two drill holes and the results are likewise encouraging. It also extended the trench, and we’re waiting for an update from the company on those results. All signs are that it found something significant with a larger scale to it.

It’s a very good sign for Condor that it’s found the central breccia, but there are other areas where bulk tonnage of mineralization exist, which it could exploit through larger-scale mining techniques.

TGR: There are also other mines nearby, which could lead to a takeover.

CW: Exactly. Obviously, I don’t think it’s something that Condor is going to aim for immediately. In our discussions with the company, it’s all for just keeping its head down. It has an objective, it has a strategy to achieve that objective and it’s going to take the La India project as far down the development track as it can.

But it’s an interesting part of the world. Obviously, there is a lot of gold in Nicaragua, which in Central America is one of the more stable areas to operate in. There are larger-scale operations in the country. Whether one of the other Nicaraguan players would be the one to take Condor out or whether there might be a rollup by another company, I don’t know. At the moment, Condor has a lot it can do to increase the value of its portfolio.

TGR: Rambler Metals & Mining Plc (RAB:TSX; RMM:AIM) just started producing gold from its Ming mine in Newfoundland and Labrador. It has already forward-sold some of its production to Sandstorm Resources Ltd. (SSL:TSX.V). It’s one of those that quietly came into production. How did you find out about this story?

CW: It has the trifecta of things I look for in a mining project: management, geology and a stable location. Newfoundland and Rambler have it all in spades. It did come into production quietly, but that doesn’t detract from the story. It’s just been overlooked. It’s in a part of the world that has the last of the low-hanging, high-grade fruit for the same reasons that we look at parts of the Arabian-Nubian Shield. That part of Newfoundland has the same VMS deposits with a strong grade. Rambler definitely has that in the Ming mine, which has very good grades of copper, gold and some associated silver as well.

Rambler took on a loan to keep the project moving forward at a time when gold prices were much lower than they are now, and it did seem like a very sound decision for the company to make at the time. Now that gold is at the price it is, you can look back and say, “Well, I don’t think it was a good move,” but you play the cards that you’re dealt. I think George Ogilvie, the chief executive of the company, has done very well to get it up and running. It’s in a gold production phase just because it can produce gold at the higher price. It’s giving some of its revenue of gold away, but the payoff of the gold line is not having a dramatic negative effect on its cash flow. Later on this year, it’s going to go into a copper production phase where it’s going to increase its revenue.

TGR: How did you discover it?

CW: It came in through one of the mine organizers and management of a company that we’ve dealt with for a good time and trust.

TGR: You’re going to keep that a secret.

CW: The mining industry is a relatively small game. There is no better commodity than knowledge and trust in certain mine managers.

TGR: Sprott Resource has put some money into that project as well. When you get players like Sandstorm and Sprott involved, obviously the numbers add up.

CW: I know Sprott did an awful lot of technical due diligence on the project, so it must be very comfortable. It’s a very good deal for Sprott, as well as for Rambler.

TGR: Looking at the small-cap mining sector into 2012, do you expect a rebound or are we going to see more headwinds?

CW: We’re going to get an overall flight to quality. There are a lot of projects out there that are going to stand out from the crowd. We’ll see some re-ratings and some heads pop out from the parapet to show themselves to be above-average mining plays.

The pullback in mining shares and mine management becoming more cautious are going to pay dividends for the mining companies in the mid term. One thing we know is that resources are scarce. It’s getting harder and harder to find the projects, particularly good gold and copper projects. We’ve lost another field season in 2011 and a lot of people brought their drill rigs home rather than overspend during a downturn, so it’s going to be harder to find the projects in the development pipeline that can fill the metal supply gaps that develop.

When demand comes back to Asia or North America, there won’t be a sufficient number of projects in the development pipeline to feed that demand.

TGR: Thanks for your insights.

Christopher Welch holds a master’s in international business management and a Bachelor of Science (Honors) in geology from University College London and an Advanced Certificate in economics from Birkbeck University. Before joining Ocean Equities, Welch spent four years with Bloomsbury Minerals Economics as a copper analyst, prior to which he worked as a geologist in Lesotho.

Want to read more exclusive Gold Report interviews like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our Exclusive Interviews page.

DISCLOSURE: 
1) Brian Sylvester of The Gold Report conducted this interview. He personally and/or his family own shares of the following companies mentioned in this interview: None.
2) The following companies mentioned in the interview are sponsors of The Gold Report: Condor Resource Plc, Sunridge Gold Corp. Streetwise Reports does not accept stock in exchange for services.
3) Christopher Welch: I personally and/or my family own shares of the following companies mentioned in this interview: Condor Resources Plc, Rambler Metals & Mining Plc and Nyota Minerals Ltd. I personally and/or my family am paid by the following companies mentioned in this interview: None. I was not paid by Streetwise for participating in this story.

Related posts:

1. Reuters: Factobox of Recent Merger and Acquisitions in African Mining
2. Asmara GeoCongress 2010 Due in September
3. AXMIN Appoints Vice President of Exploration
4. Eritrea: African Mining Newcomers Attract Investors
5. African Gold Developers and Producers are Benefiting from Increased Investor Interest

With London’s established prominence as the financial partner in the global mining industry, Mines and Money London is an invaluable channel for the global mining industry to cultivate long term partnerships with the city’s mining stakeholders and investors.

Mines and Money London brings together some of the most influential decision makers within mining companies, the investment community, governments and professional services.

Recognised as the best international forum for networking in London, Hong Kong, Beijing and Sydney, these events are fixtures in the diaries of industry leaders. Amongst the exhibitors: South Boulder Mines, Sunridge Gold, Chalice Gold and others with projects in Eritrea.

http://www.minesandmoney.com/london/

Related posts:

1. South Boulder Mines Managing Director to Speak at London Exhibition
2. South Boulder Mines CEO Lorry Huges to Present at International Mining Convention in Cape Town
3. Video: Chalice Gold Presentation at Africa Down Under Conference
4. Nevsun and South Boulder Mines Presenting at PDAC
5. Chalice Gold Mines Entitled to A$5 Million Following Merger with Sub-Sahara Resources

Eritrea Mining Zara

Asmara, 1 November 2011- The Eritrean government and Zara Mining Company today signed agreement at Denden Hall here in the capital.

The agreement was signed by the Minster of Energy and Mines, Mr. Ahmed Haj Ali, and the Chairman of the Board of Directors of Zara Mining Company, Mr. Thimothy Gorder .

Speaking on the occasion, Mr. Ahmed Haji Ali said that recently Bisha managed to develop and commence commercial production, while Sundridge is doing pre-feasibility and feasibility studies for the Asmara project, and South Boulder Mines announced the completion of a scoping study for the Colluli potash deposit. The Minster further explained that the signing of the latest agreement for a Zara mine is a wonderful and important addition to mining sector in the country.

The Chairman of the Board of Directors in Zara Mining Company, Mr. Thimothy Gorder, said that given the significant progress already made and the strong support afforded to the project by the Eritrean government, construction will get underway in the first half of next year. Gold production is also targeted to commence in late 2013.

Zara Mining Company is jointly owned by the Eritrean National Mining Corporation and the Australian Gold Mining Company, Chalice.

Source : Shabait

Related posts:

1. Sunridge Gold Provides update on Asmara Project Tour, Drilling Progress and Company Presentations
2. Eritrea: South Boulder Officially Granted Licence for Mining Project
3. Chalice Gold Mines Close Before Commencing to Look for Funding for Koka Project in Eritrea
4. Eritrea is the New Frontier for Mining Companies, Even in Spite Of UN Sanctions
5. Chalice Declares Maiden Gold Reserve for Eritrea’s Koka Deposit

Geocongress Asmara

As part of the Arabian Nubian Shield, Eritrea is now being acknowledged for its substantial mineral potential that ranges from VHMS polymetallic deposits associated with NeoProterozoic rocks of this Shield, to epithermal gold and Potash deposits in the younger Red Sea Rift-related sedimentary and volcanic rocks of Tertiary and Quaternary Periods.

The commencement of commercial production of the first modern mine at Bisha and the presence of different advanced projects of gold at Koka (Chalice Gold Mines, Zara project), base metal and gold deposits at Debarwa, Embaderho and Adi Nefas (SunRidge Gold Corp., Asmara Project) together with that of the Potash deposit at the Denakil Depression (South Boulders, Colluli Potash Project) makes Eritrea an attractive destination for potential metallic and non-metallic minerals exploration and mining.

In an attempt to promote the exploration and mining activities of the country and the region in general, the Ministry of Energy and Mines is organizing the Second Asmara GeoCongress 2011, to be held in October 4-8, 2011 in Asmara. The Ministry hereby invites all interested parties to attend the Congress.

The objective of the GeoCongress is to bring together earth scientists, mining experts, investors, service providers and regulators, to share experiences and to discuss, on current activities of exploration, mining and on various topics of interest. The event will provide a good opportunity for the participants to gather valuable information on recent views on the evolution of the geology of the region, new techniques and approaches in exploration and mining for metallic and nonmetallic minerals, and the social, environmental, financial and legal challenges associated with exploration and mining activities.

The GeoCongress is also expected to promote the mineral resources of the Shield and enhance regional cooperation and coordination. SUNA reports that Sudan’s Ministry of Minerals is going to take part in the Geocongress in Asmara and that the two sides will secure the  border mining projects and share data and experience on the Arabian Nubian Shield.

Themes

• Geology and evolution of the Arabian Nubian Shield
• Geological, geochemical and geophysical techniques of Mineral exploration
• Mining Techniques in the region
• Social and Environmental Aspects of mining activities
• Financial and Legal aspects of exploration and mining activities

Activities (Programs)

• Two days of presentations
• Tour to exploration and mine sites
• Excursion to the pristine waters of the Red Sea Coast including a train ride to Massawa.

The Geocongress Asmara 2011 is organized by the Eritrean Ministry of Energy and Mines.

Related posts:

1. Asmara GeoCongress 2010 Due in September
2. Asmara Geocongress Journal 2011
3. London Africa Update: Report and Asmara Geocongress Presentation
4. Eritrea: South Boulder Officially Granted Licence for Mining Project
5. Eritrea: Stratex International Expands into Ethiopia

Sunridge Gold

VANCOUVER, BRITISH COLUMBIA — (Marketwire) — 03/01/11 — Sunridge Gold Corp. (TSX VENTURE: SGC) is pleased to announce encouraging copper and zinc recovery results from recent metallurgical tests conducted on mineralized material from the Emba Derho deposit. The metallurgical work is part of the prefeasibility study currently being conducted on the Asmara North deposits located in Eritrea.

Emba Derho Deposit Metallurgical Tests

The results are from locked-cycle copper and zinc metal recovery testwork conducted at SGS (Vancouver) laboratory under the supervision of Blue Coast Metallurgy Ltd on samples from the Emba Derho deposit. Using a conventional, low-cost flotation flow sheet, the test results show a recovery of 92% of the copper producing a 28% copper concentrate and 88% recovery of the zinc producing a 62% zinc concentrate. Precious metal recoveries for gold and silver returned values of 50% and 55%, respectively. Head grades used in the test work were 1.15% copper, 2.14% zinc, 0.07 g/t gold and 5.1 g/t silver.

“These results show unexpected high copper and zinc recoveries from the Emba Derho mineralized material with impressive product grades,” says Michael Hopley, Sunridge’s President and CEO. “Considering the large amount of copper and zinc contained in the Emba Derho deposit this will certainly have a significant positive effect on the economics of the deposit in the ongoing prefeasibility study.”

Sunridge is currently conducting metallurgical testing on the Emba Derho deposit as part of the current prefeasibility study on the Asmara North deposits. The program will include further flowsheet optimization, variability studies and testing of composites made from blending Emba Derho mineralization with that from two other VMS deposits on the Asmara Project, Adi Nefas and Debarwa.

Emba Derho Drill Program

Drilling with three drills has been underway at Emba Derho for the past two weeks as part of a planned 8,500 meter drill program. The first assay results are expected in 4 to 6 weeks.

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. This press release has been reviewed by Chris Martin, Principal Metallurgist and President of Blue Coast Metallurgy Ltd. and a Qualified Person under the guidelines of NI 43-101.

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 116 million shares outstanding and approximately $25 million in cash. Sunridge trades on the TSX Venture Exchange under the symbol SGC. For additional information on the Company and its projects please visit our website at www.sunridgegold.com or call Greg Davis at the numbers listed below. All of the above mentioned technical reports are filed on the Company’s profile at www.sedar.com.

SUNRIDGE GOLD CORP.

Michael Hopley, President and Chief Executive Officer

This news release contains forward-looking statements that are based on the Company’s current expectations and estimates. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “suggest”, “indicate” and other similar words or statements that certain events or conditions “may” or “will” occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Such factors include, among others: the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans to continue to be refined; possible variations in ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing; and fluctuations in metal prices. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

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.

Related posts:

1. Sunridge Gold Starts New Drill Program at Emba Derho Copper-Zinc-Gold Deposit, Asmara Project, Eritrea
2. Assessment of Emba Derho Deposit in Eritrea positive says Sunridge Gold Corp.
3. Sunridge Gold to Conduct Production Study on Project in Asmara, Eritrea
4. Sunridge Gold Begins Drill Program at Medrizien Gold Target, Asmara Project, Eritrea
5. Sunridge Gold Intercepts Strong Vms Mineralization At The Asmara Project, Eritrea

Sunridge Gold

Sunridge Gold Corp (SGC/TSX.V) is pleased to announce that, as part of a recently announced prefeasibility study on the Asmara North deposits, the Company has started an 8,500 meter drilling program at the Emba Derho copper-zinc-gold deposit. The drilling program will consist of approximately 6,000 meters of diamond drilling which will define parts of the Emba Derho deposit in greater detail, test for extensions of the mineralization to the north, west and east and test for depth extensions to the mineralization.

Expansion drilling to the north, east and west will test coincident geophysical gravity and electromagnetic anomalies which could be lateral extensions of the main Emba Derho Deposit.

The main part of the Emba Derho deposit has been drilled from surface to a depth of approximately 300 to 350 meters and the mineralization is open at depth.

A number of the previously drilled holes contained significant copper grades showing that the higher grade copper zone continues to depth – see the table below that summarizes some of these intervals that have been previously reported.

Management believes that there is strong potential to add to the size of the Emba Derho deposit with this program. This drill program will also collect geotechnical data and more metallurgical samples.

In addition to the above extension possibilities, a 2,500 meter reverse-circulation drill program will target further definition and potential expansion of the shallow oxide gold-cap at Emba Derho. Any increase in the gold cap could provide additional resources for an open pit operation.

Current Emba Derho Resource: The September 10, 2008 Wardrop Engineering Inc. Indicated resource estimates for Emba Derho are summarized as follows:

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 116 million shares outstanding and approximately $25 million in cash. Sunridge trades on the TSX Venture Exchange under the symbol SGC. For additional information on the Company and its projects please visit our website at www.sunridgegold.com or call Greg Davis at the numbers listed below. All of the above mentioned technical reports are filed on the Company’s profile at www.sedar.com.

Notes:

1. All drill holes reported are diamond drill holes.

2. Drill intercept lengths only are reported in the tabulations; it is estimated that true width will be approximately 80% of the reported drill intercept length.

3. A Quality Assurance/Quality Control program is part of the drilling program on the Asmara Project. This program includes chain of custody protocol as well as systematic submittals of standards, duplicates and blank samples into the flow of samples produced by the drilling.

4. A description of the geology, sampling procedures, and the Company’s laboratory Quality Assurance / Quality Control procedures are as described in each of the Company’s most recent National Instrument 43-101 Technical Reports filed and dated March 15, 2007. These reports are available on the Company’s profile at www.sedar.com.

5. Samples are prepared at African Horn Testing Services (Eritrea) and analyzed at Genalysis Laboratories (a NATA registered laboratory) in Perth Western Australia.

6. The Qualified Person responsible for the release of this exploration information is Michael Hopley, President and Chief Executive Officer of Sunridge Gold Corp.

SUNRIDGE GOLD CORP.

“Michael Hopley”

Michael Hopley, President and Chief Executive Officer

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1. Sunridge Gold Receives Positive Metal Recovery Results from the Emba Derho Deposit, Asmara Project, Eritrea
2. Sunridge Gold Begins Drill Program at Medrizien Gold Target, Asmara Project, Eritrea
3. Assessment of Emba Derho Deposit in Eritrea positive says Sunridge Gold Corp.
4. Sunridge Gold Reports More High-Grade Copper Drill Results From Asmara, Eritrea
5. Sunridge Gold Restarts Exploration Drilling and Mobilizes a Second Drill to the Asmara Project, Eritrea

Sunridge Gold Corp., (SGC/TSX.V) is pleased to announce that it has commenced a new exploration drilling program at the Medrizien Gold target on the Asmara Project, Eritrea. Approximately12 reverse circulation drill holes for at least 1,000 metres are planned for the initial drill program. The 100% owned Medrizien Gold target is located within 1 kilometre of the large Emba Derho copper zinc gold VMS deposit which is one of the three Asmara North Deposits.

The gold mineralization in the Medrizien Gold prospect occurs in a stockwork of quartz veins associated with pyrite and chalcopyrite within a surrounding halo of sheared volcanic rocks with sericite and pyrite. The target varies in width from a few metres up to 25 metres over a 3.5 kilometre strike length. Some historic small scale gold mining was conducted on the site by the Italian colonists consisting of small pits and underground workings.

During previous surface exploration work, a total of 65 rock grab samples were taken over the length of the prospect of which 57 samples were from the surface showing of mineralized quartz veins and altered halo of volcanic rocks (see Sunridge Gold News release dated April 1, 2009). The results showed 10 samples with assays over 1 g/t gold with these sample values averaging 12.13 g/t gold with the highest assay being 74.7 g/t gold. The 8 rock samples taken from the old underground workings range from 0.14 g/t up to a value of 319 g/t with an average of 51.32 g/t gold.

The objective of the Medrizien drill program is to make a new gold discovery on the Asmara Project, which could provide future feed to any mining operations in the northern area of the Asmara Project.

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.

NOTES:

1. A Quality Assurance/Quality Control program was part of the sampling program on the Medrizien gold prospect. This program includes chain of custody protocols as well as systematic submittals of standards, duplicates and blank samples into the flow of samples produced by the sampling.
2. Samples were prepared at African Horn Testing Services (Eritrea) and analyzed at Genalysis Laboratories (a NATA registered laboratory) in Perth, Western Australia.
3. The results of the Medrizien gold prospect sampling have been reviewed by Michael J. Hopley the Qualified Person for Sunridge. Mr. Hopley is also the person responsible for preparation of the technical information contained in this news release and is President and Chief Executive Officer of Sunridge.

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 116 million shares outstanding and approximately $25 million in cash. Sunridge trades on the TSX Venture Exchange under the symbol SGC. For additional information on the Company and its projects please visit our website at www.sunridgegold.com or call Greg Davis at the numbers listed below. All of the above mentioned technical reports are filed on the Company’s profile at www.sedar.com.

SUNRIDGE GOLD CORP.

“Michael Hopley”

Michael Hopley, President and Chief Executive Officer

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.

This news release contains forward-looking statements that are based on the Company’s current expectations and estimates. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “suggest”, “indicate” and other similar words or statements that certain events or conditions “may” or “will” occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Such factors include, among others: the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans to continue to be refined; possible variations in ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing; and fluctuations in metal prices. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

Related posts:

1. Sunridge Gold Starts New Drill Program at Emba Derho Copper-Zinc-Gold Deposit, Asmara Project, Eritrea
2. Sunridge Gold Restarts Exploration Drilling and Mobilizes a Second Drill to the Asmara Project, Eritrea
3. Sunridge Gold Reports More High-Grade Copper Drill Results From Asmara, Eritrea
4. Sunridge Gold Receives Positive Metal Recovery Results from the Emba Derho Deposit, Asmara Project, Eritrea
5. Sunridge Gold and Antofagasta Minerals Exploration Joint-Venture Update, Asmara Project, Eritrea

The study, which will be maanged by Snowden Mining Industry Consultants and assisted by GBM Minerals, will consider a centralized process plant, using flotation for recovery of the base metals. Consultants will look to asses various mining options over an expected mine life of between 10 to 14 years.

The prefeasibility report, expected in the fourth quarter, will also investigate options for the development of a gold recovery plant to process material from surface zones of mineralization.

“This prefeasibility study will provide the direction of development of the Asmara North deposits to production,” said vice president of projects for Sunridge, Scott Ansell.

The Asmara North deposits are made up of three distinct deposits: Emba Derho, a large 62 million tonne copper-zinc-gold volcanogenic massive sulphide (VMS) deposit; Adi Nefas, located 6 kilometers from Emba Derho, but a much smaller and higher grade zinc-gold-copper VMS deposit; and the Gupo gold deposit.

Sunridge also has an option to acquire the nearby Debarwa deposit, also a high grade copper-gold-zinc VMS property currently in feasibility study stage. The prefeasbility report on Asmara North will evaluate options to transport ore from Debarwa to a central processing facility at Asmara.

Related posts:

1. Sunridge Gold Selects Senet to Conduct Feasibility Study on the Debarwa Project, Eritrea
2. Sunridge Gold to Conduct Production Study on Project in Asmara, Eritrea
3. Sunridge Gold Intercepts Strong Vms Mineralization At The Asmara Project, Eritrea
4. Sunridge Gold Receives Positive Metal Recovery Results from the Emba Derho Deposit, Asmara Project, Eritrea
5. Sunridge Gold Begins New Drill Programme in Eritrea

Highlights from these latest drilling results are as follows:

• DEBD-130 – 31.85 m of 5.72 % Cu & 2.13 g/t Au, including 6.00 m of 17.99% Cu
• DEBD-131 – 9.29 m of 11% Cu & 4.19 g/t Au
• DEBD-132 – 13.45 m of 16.22% Cu & 3.22 g/t Au, including 5.00 m of 17.24% Cu & 3.3m of 26.04% Cu
• DEBD-133 – 16.70 m of 14.9% Cu & 2.15 g/t Au
• DEBD-135 – 25.45 m of 11.22% Cu & 1.75 g/t Au
• DEBD-136 – 11.45 m of 4.1% Cu & 2.18 g/t Au
• DEBD-138 – 16.50 m of 3.66 % Cu & 7.15 % Zn (Primary Zone)
• DEBD-139 – 4.50 m of 2.04 % Cu & 11.8 % Zn (Primary Zone)

The purpose of the ongoing diamond drill program at Debarwa is to better define and extend both laterally and at depth all zones of copper, gold and zinc mineralization as part of the ongoing Debarwa feasibility study that started in November 2010.

The first six shallow holes DEBD-130 to DEBD-133, DEBD-135 and DEBD-136 were designed to intersect the surface outcropping gold-rich oxide zone and/or the copper-enriched supergene zone which lies immediately beneath.

Within the supergene zone there exists a particularly high-grade copper zone, with grades greater than 15% copper; this zone is known as the “Direct Shipping Ore” or DSO zone. Four holes DEBD-134 and DEBD-137 to DEBD-139 were drilled deeper to intersect the primary zone of copper-zinc-gold mineralization.

The results of these new assays continue to confirm the high-grade copper grades in the supergene and DSO zones and the deeper holes have both confirmed and extended the depth of the primary zone of copper-zinc-gold mineralization at Debarwa.

As well as better definitions and extensions of the mineralized zones the purpose of the current Debarwa drilling program is to capture structural data from the oriented drill core and to gather more samples for ongoing metallurgical test work.

A summary of the assay results from these ten drill holes are as follows (click on image):

NOTE: See plan map at the end of this release and on the Company’s website – www.sunridgegold.com. There were no significant assays from drill hole DEBD-134.

The Debarwa Feasibility Study

The Debarwa feasibility study will consider a standalone process plant using flotation for the recovery of the base and precious metals and will study various mining options over a forecast life of mine of approximately 9 years. The study will further investigate a direct shipping option to mine high-grade copper mineralization (greater than 15% copper) to generate early cash flow and enhance economics of the deposit. The completion of this report is expected in the third quarter of 2011.

NOTES:

1. A Quality Assurance/Quality Control program was part of the sampling program on the Debarwa copper-zinc-gold deposit. This program includes chain of custody protocols as well as systematic submittals of standards, duplicates and blank samples into the flow of samples produced by the sampling.
2. Samples were prepared at African Horn Testing Services (Eritrea) and analyzed at Genalysis Laboratories (a NATA registered laboratory) in Perth, Western Australia.
3. The results of the Debarwa drill program have been reviewed by Michael J. Hopley the Qualified Person for Sunridge. Mr. Hopley is also the person responsible for preparation of the technical information contained in this news release and is President and CEO of Sunridge.

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 117 million shares outstanding and approximately $25 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 Greg Davis at the numbers listed below.

SUNRIDGE GOLD CORP.

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.

This news release contains forward-looking statements that are based on the Company’s current expectations and estimates. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “suggest”, “indicate” and other similar words or statements that certain events or conditions “may” or “will” occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Such factors include, among others: the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans to continue to be refined; possible variations in ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing; and fluctuations in metal prices. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

Related posts:

1. Sunridge Gold Starts New Drill Program at Emba Derho Copper-Zinc-Gold Deposit, Asmara Project, Eritrea
2. Sunridge Gold Intercepts Strong Vms Mineralization At The Asmara Project, Eritrea
3. Sunridge Gold Drill Results 2009
4. Sunridge Gold Begins Drill Program at Medrizien Gold Target, Asmara Project, Eritrea
5. Sunridge Gold Begins New Drill Programme in Eritrea

These first 35 holes were drilled at the northern and middle sections of the deposit for a total of 4,640 metres as part of the recently commenced feasibility study at Debarwa. The drill program focused on further defining the potential “Direct Shipping Ore” zone (a zone of +15% copper within the copper-enriched supergene zone and referred to as the “DSO” zone) as well as seeking extensions to the south and to the east, to extend the primary zone in depth in the Main Zone, to capture structural data from the oriented core and to gather more samples for ongoing metallurgical test work. The program has about 1,400 metres remaining to drill, mainly in the Debarwa South zone.

A third drill will join the two existing drills at Debarwa in January to initially drill wells for the ongoing hydrological studies, part of the feasibility study, and then to move onto Sunridge’s near-surface gold targets at the Emba Derho and Gupo deposits as well as the Medrizien gold target located in the northern part of the Asmara Project.

The Debarwa Feasibility Study

The Debarwa feasibility study will consider a standalone process plant using flotation for the recovery of the base and precious metals and will study various mining options over a forecast life of mine of approximately 9 years. The study will further investigate a direct shipping option of the DSO zone to generate early cash flow and enhance economics of the deposit. The completion of the feasibility study is expected in the third quarter of 2011.

Michael J. Hopley the President and Chief Executive Officer of Sunridge is the Qualified Person for Sunridge and he is 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 currently has approximately 117 million shares outstanding and approximately $25 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.

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2. Sunridge Gold Reports More High-Grade Copper Drill Results From Asmara, Eritrea
3. Sunridge Gold and Antofagasta Minerals Exploration Joint-Venture Update, Asmara Project, Eritrea
4. Sunridge Gold to Conduct Production Study on Project in Asmara, Eritrea
5. Sunridge Gold and Antofagasta Minerals Commence Drilling at Daero Paulos, Part of the Asmara Project, Eritrea