The Eritrean government has granted Canadian-explorer Sunridge Gold extensions to two of its exploration licences that make up the company’s Asmara project, in the north-eastern African country.

These extensions have increased the overall size of the Asmara project by about 60%, from 665 km2 to 1 062,5 km2.

The extensions expand the Sunridge exploration licences 5 km to the west and 5 km to the east, which covers areas where the company believes are continuations of volcanogenic-massive-sulphide and shear zone gold mineralised trends.

Further, the company has estimated that about 153 km2 of the new ground is within the area of interest of the exploration areas of the October 2, 2009, exploration and funding agreement with Antofagasta Minerals.

Antofagasta is willing to fund $10-milllion of exploration work over a five-year period to earn a 60% interest in the exploration areas of the Asmara project.

The Antofagasta area of interest excludes the current existing development areas, including the Emba Derho, Debarwa, Adi Nefas and Gupo gold deposits.

Reconnaissance work on these new extensions will start soon.

Sunridge is a minerals exploration and devel-opment company focused on the acquisition, explo-ration, discovery and development of base and precious metal projects on the Asmara project in Eritrea and exploration properties 
in Madagascar.

The company has about 76-million shares outstanding and around $8-million in cash.