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Sunridge Gold climbs after Antofagasta ends option agreement

May 13, 2011 12:04 PM ETSGCNF
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Shareholders in Sunridge Gold (CVE:SGC) reacted positively to news that the company had regained 100% control of the Asmara Project.

The junior exploration company signed a agreement with Antofagasta (LON:ANTO) in September 2009 which gave it an option to earn a 60% interest in Asmara by investing US$10 million in exploration expenditure over a five year period.  Antofagasta spent $2.2 million on the project, but opted to terminate its option agreement rather than committing to further exploration expenditure.

"We are very happy to again have 100% ownership of the exploration areas on the Asmara Project particularly given the fact that Sunridge now has more than $20 million in cash and will therefore be able to conduct an aggressive exploration program on the property in addition to our ongoing feasibility and pre-feasibility studies on our four known deposits," states Michael Hopley, Sunridge President and CEO.

Asmara hosts three deposits: Emba Derho, Adi Nafas and Debarwa, holding a NI 43-101 compliant indicated resource of 1.28 billion pounds of copper, 1.13 million tonnes of zinc, 1.05 million ounces of gold and 31.8 million ounces of silver and a fourth prospect known as Gupo, containing an inferred resource of 189,000 ounces of gold.

The Asmara is named after the capital of Eritrea and is located on the  outskirts of the city, surrounded by paved roads and all of the infrastructure requirements needed to build a mine and production facilities.

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