Sunridge hits more high-grade copper-gold

 Sunridge Gold (sgc-v) has released its second round of drill results in two weeks, with more significant gold-copper-silver hits at its Asmara project in Eritrea. 

The results are part of an ongoing drill program to better define the copper, gold and zinc zones at the Debarwa deposit. With roughly 50 diamond drill holes completed and five more to go, the company expects to have enough results for an updated resource estimate in March.

Targeting the shallow, outcropping gold-rich oxide zone and at times the copper-enriched supergene zone beneath, hole 130 hit 31.9 metres grading 5.72% copper and 2.13 grams gold per tonne; hole 131 cut 0.3 metre carrying 11% copper and 4.19 grams gold; hole 132 returned 13.5 metres of 16.22% copper and 3.22 grams gold; and hole 135 cut 25.5 metres averaging 11.22% copper and 1.75 grams gold.

Targeting the deeper primary zone of copper-gold-zinc mineralization, hole 138 cut 16.5 metres carrying 3.66% copper, 2.43 grams gold and 7.15% zinc and hole 139 hit 4.5 metres of 2.04% copper, 1.14 grams gold and 11.8% zinc.

Sunridge released further results in January including hole 129 that hit 22 metres of 13.41% copper and 4 grams gold and 19.2 metres carrying 12.65% copper and 2.28 grams gold.

Results from both rounds of drilling also included significant silver grades.

Debarwa is a volcanogenic massive sulphide deposit, roughly 8 metres by 30 metres in width. Debarwa is one of four deposits that comprise the Asmara project, which lies roughly 25 km south of the capital city, Asmara.  

As of an early 2008 resource, the deposit hosts 2.4 million indicated tonnes in the oxide zone grading 1.71 grams gold, 13.79 grams silver, 0.12% copper and 0.09% zinc. In the supergene zone, the resource hosts 1.3 million tonnes at 1.54 grams gold, 33.87 grams silver, 5.36% copper and 0.08% zinc. Finally, in the primary zone, there is a further 700,000 tonnes of  0.87 gram gold, 22.31 grams silver, 2.53% copper and 3.23% zinc.

The company is working on a feasibility study that will consider a standalone processing plant as well as a shorter-term high-grade direct shipping option to generate early cash flow. The study is expected to be completed by July.

Sunridge’s share price climbed 29¢ to $1.29 on the day with 2.3 million shares traded. The company hit a 52-week high of $1.58 last November after climbing steeply from 34¢ in May 2010. The company has 116.5 million shares outstanding.