Sunridge Gold Increases Post-Tax Value for the Asmara Project, Eritrea
Sunridge Gold Corp. (the “Company” or “Sunridge”) (SGC: TSX.V/SGCNF: OTCQX) is pleased to report that it has received updated values from the financial model for the Asmara Project Feasibility Study (the “Study”) which increased the Base Case post-tax net present value (“NPV”) from $345 million to $428 million. The increased numbers are based on the Company receiving clarity on the tax laws of Eritrea, specifically the application of historic expenditures and depreciation in the financial model. The pre-tax value of $692 million for the Study remains unchanged. The results of the Study were initially reported on May 28, 2013 and amended on August 21, 2013.
The Study demonstrates that the mining of all 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 pre-tax NPV (using a 10% discount rate) of $692 million and a post-tax NPV (10% discount rate) now at $428 million. The new post-tax number is a significant increase of $83 million from the original post-tax NPV (10%) of $345 million.
The following outlines the Base Case Highlights from the Study.
| • | NPV of $692 million at a 10% discount (pre-tax) | |
| NPV of $428 million at a 10% discount (post-tax) | ||
| • | Internal rate of return (IRR) – pre-tax 34%, post-tax 27% | |
| • | Base Case metal prices used - $3.25/lb copper, $1.00/lb zinc, $1,400/oz gold, $25.00/oz silver |
Feasibility Study Report
An amended Asmara Feasibility Technical Report which incorporates the updated application of Eritrean tax laws is being completed by lead engineering company SENET with support from Snowden Mining Industry Consultants Inc. on resource estimation, mine design, mine planning and economic modelling in addition to work by Knight Piésold Ltd. on water and waste management design. Blue Coast Metallurgy Ltd. directed metallurgical test-work. The new report will be filed on the Company’s profile on www.sedar.com within 30 days of this press release.
Qualified Person
The Asmara Feasibility was completed by lead engineering company SENET under the direction of Pieter Theron Projects Director and approved by Neil Senior, Pr.Eng, an Independent Qualified Person within the meaning of NI 43-101.
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 projects on the Asmara Project in Eritrea. Sunridge currently has approximately 210 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 at www.sunridgegold.com or call Greg Davis at the number listed below.
| SUNRIDGE GOLD CORP. | ||
| “Michael Hopley” | For further information contact: | |
| Michael Hopley, President and Chief Executive Officer | Greg Davis, VP Business Development | |
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| Email: greg@sunridgegold.com Tel: 604-688-1263 (direct) | |
| Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. | ||
This news release contains forward-looking statements that are based on the Company’s current expectations and estimates. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “suggest”, “indicate” and other similar words or statements that certain events or conditions “may” or “will” occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Forward looking statements may include the timing and success of any application for a mining license or of debt financing and completion of definitive documentation with ENAMCO. Risk and uncertain factors include, among others: the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans to continue to be refined; possible variations in ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, a mining license, or debt financing, uncertainties in negotiating commercial arrangements with government entities; and fluctuations in metal prices. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
Contact
Sunridge Gold Corp.
Greg Davis, 604-688-1263 (direct)
VP Business Development
greg@sunridgegold.com