JOHANNESBURG (miningweekly.com) – TSX-V- and ASX-quoted Sunridge Gold’s Asmara project in Eritrea has the potential to produce 25 900 t of copper and 61 800 t of zinc yearly, in addition to silver and gold, the company said on Wednesday, announcing the results of a prefeasibility study.
At a 10% discount rate, the project has a $555-million pretax net present value, will cost $489-million to build, and will achieve capital payback in 3.5 years, the Vancouver-based miner said.
Sunridge said the prefeasibility study, which Snowden Mining Industry Consultants carried out, determined the best way to develop the 100%-owned Asmara mine would be to operate all four nearby deposits as one mine and process the ore centrally at a single mill.
CEO of the junior, Michael Hopley, said he was pleased with the study’s results.
“The outcomes have certainly exceeded our expectations and provide significant shareholder value,” he commented in a statement.
The prefeasibility study predicted the project would produce an average 26 000 oz of gold and 695 000 oz of silver for each of its 15.25 years of life.
Snowden used base case metals prices of $3.28/lb copper, $0.99/lb zinc, $1 111/oz gold and $21/oz silver for the study.
Vancouver-based peer Nevsun Resources owns the Bisha mine in the Horn of Africa country, which produced 379 000 oz of gold last year.
TSX-V-listed Chalice Gold in April said the board of Shanghai Construction Group had approved the previously announced $78-million purchase of the Canadian company’s 60% ownership of the Zara project in Eritrea.