Feasibility Study for the Asmara Project, Eritrea

nlk



FSC / Press Release


Sunridge Gold Files Amended NI 43-101 Technical Report on the Feasibility Study for the Asmara Project, Eritrea


Vancouver, British Columbia CANADA, August 21, 2013 /FSC/ - Sunridge Gold Corp. (SGC - TSX Venture, SGCNF - OTCQX),announces today it has filed on SEDAR an amended Technical Report ("the Amended Report") on the independent Feasibility Study on the Asmara Project, Eritrea as a result of a review by the British Columbia Securities Commission. The original report was filed on July 2, 2013 (the "Original Report"). The amendments are all additions and do not change any fundamental facts contained in the Original Report and are summarized as follows:


* In addition to references to previously filed technical reports, summaries of these technical reports are now included in Sections 9, 10, 11, 12 and 14 of the Amended Report.


* The Amended Report now discloses information on the Adi Rassi and Kodadu mineral resource estimates which are included on the same Exploration Licenses as the Debarwa, Emba Derho, Adi Nefas and Gupo Gold deposits, but which are not part of the feasibility study for the Asmara Project.


The following Qualified Persons have reviewed and approved the scientific and technical content of this news release:


Neil Senior, P. Eng. MSc Mech. Eng, FSAIMM, SENET (Pty) Ltd.

Anthony Finch, P. Eng, MAusIMM, Snowden Group Pty Ltd.

Andrew Ross, FAusIMM, Snowden Mining Industry Consultants Pty Ltd.

Christopher John Martin, BSc (Hons), MEng, IMMM, Blue Coast Metallurgy Limited Ltd.

Scott David Rees, P. Eng., Knight Piesold Ltd.

David Gwilym Thomas P. Geo, Fladgate Exploration Consulting Corporation


About the Asmara Project, Eritrea


The Amended Report on the independent feasibility study for the Asmara Project, Eritrea demonstrates that mining of the four advanced deposits that make up the Asmara Project (Emba Derho, Adi Nefas, Gupo Gold and Debarwa) and processing of the ore near the large Emba Derho deposit is economically robust with a Net Present Value ("NPV") of $692 million. The report outlines a three-phase staged start-up mining plan which would initiate production almost one year earlier than was envisaged in the prefeasibility study. This earlier cash-flow, combined with capital cost reductions, reduces the initial capital requirements to be financed by over $130 million.


Base Case Highlights (all $ equals US dollars):


* NPV of $692 million at a 10% discount (pre-tax)

NPV of $345 million at a 10% discount (post-tax)


* NPV of $837 million at an 8% discount (pre-tax)

NPV of $443 million at an 8% discount (post-tax)


* Internal rate of return (IRR) -- pre-tax 34%, post-tax 27%


* Payback -- pre-tax 4.1 production years, post-tax 4.6 years


* Base Case metal prices used - $3.25/lb copper, $1.00/lb zinc, $1,400/oz gold, $25.00/oz silver


* Initial capital cost Phase IA & IB Direct Shipping Copper Ore & Heap-Leach Gold - $46 million


* Initial Phase II & III flotation plant capital cost estimate - $357 million


* Peak Equity Funding - $354 million


* On site operating costs - $29.42 per tonne average through life of mine


* Average annual metal production over the first 8 years-


* 65 million pounds (29,000 tonnes) of copper


* 184 million pounds (83,000 tonnes) of zinc


* 42,000 ounces of gold


* 1.0 million ounces of silver


* Total metal production -


* 841 million pounds (381,000 tonnes) of copper


* 1,874 million pounds (850,000 tonnes) of zinc


* 436,000 ounces of gold


* 11 million ounces of silver


* Life of Mine - 1 construction year, 15.3 production years


The Asmara Project Feasibility Study was completed by lead engineering company SENET (Pty) Ltd. under the direction of David Chambers, P. Eng (MBA) and approved by Neil Senior, P. Eng. with support from Snowden Group Inc. on mine design and mine planning and work by Knight Piesold Ltd. on water and waste management. Blue Coast Metallurgy Ltd. directed metallurgical test-work.


As a result of the positive outcome of the feasibility study, Sunridge is continuing to work towards bringing the Asmara project into production as soon as possible, by completing required environmental studies, applying for the mining license, arranging debt financing, commencing detailed engineering work and hiring new key employees. Management estimates that initial production on the Asmara Project will commence in mid-2015.


Michael Hopley, President and CEO of Sunridge Gold Corp. is the Company's Qualified Person responsible for the contents of this press release and has reviewed the information in the release and confirmed that it is consistent with that provided by the independent Qualified Person responsible for the Study.


About Sunridge:


Sunridge is a mineral exploration and development company focused on the acquisition, exploration, discovery and development of base and precious metal deposits on the Asmara Project in Eritrea and exploration properties in Madagascar. Sunridge currently has approximately 175 million shares outstanding and 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 or call Greg Davis at the numbers listed below.


SUNRIDGE GOLD CORP.

"Michael Hopley"

Michael Hopley, President and Chief Executive Officer


For further information contact:


Greg Davis, VP Business Development

Email: [email protected]

Tel: 604-688-1263 (direct)

.


To view this press release as a PDF, please click on the following link:

>http://www.sunridgegold.com

Maximum News Dissemination by FSCwire. http://www.fscwire.com