Name and Location
Asmara copper/zinc/gold/silver project, Eritrea.

Client
Sunridge Gold.

Project Description
The amended report on the independent feasibility study for the Asmara project has demonstrated that mining the four advanced deposits – Emba Derho, Adi Nefas, Gupo Gold and Debarwa and processing the ore near the large Emba Derho deposit, are economically robust, with a net present value of $692-million.

Average yearly metal production in the first eight years is estimated at 65-million pounds (29 000 t) of copper; 184-million pounds (83 000 t) of zinc; 42 000 oz of gold and one-million ounces of silver.

Total metal production is estimated at 841-million pounds (381 000 t) of copper; 1.874-billion pounds (850 000 t) of zinc; 436 000 oz of gold and 11-million ounces of silver.

The project has a life-of-mine of 15.3 years.

Value
The study outlines a three-phase staged start-up mining plan, which will initiate production almost one year earlier than was envisaged in the prefeasibility study (PFS). This earlier cashflow, combined with capital cost reductions, reduces the initial capital requirements to be financed by more than $130-million.

Initial capital costs for Phase IA and IB – direct shipping copper ore and heap-leach gold – are estimated at $46-million.

Initial Phase II and III flotation plant capital costs are estimated at $357-million.

Duration
Production is expected to start in mid-2015.

Latest Developments
As a result of the positive outcome of the feasibility study, Sunridge continues to work on bringing the Asmara project into production as soon as possible by completing required environmental studies, applying for the mining licence, arranging debt financing, starting detailed engineering work and hiring new key employees.

Management estimates that initial production on the Asmara project will start in mid-2015.

Key Contracts and Suppliers
Snowden Mining Industry Consultants (PFS) and SENET (feasibility study).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Sunridge Gold tel +1 604 536 2711, fax +1 604 536 2788 or email info@sunridgegold.com.
Snowden Mining Industry Consultants (South Africa), tel +27 11 782 2379, fax +27 11 782 2396 or
email johannesburg@snowdengroup.com.
SENET, tel +27 11 409 1300 or fax +27 11 409-1301.