Sunridge Gold (SGC-V) says United Nations sanctions against Eritrea won’t interfere in its ambitious drilling and exploration plans in the African nation in 2010.
The Vancouver-based junior says it intends to drill the large and previously undrilled Daero Paulus target at its Asmara project in mid-January, part of its joint-venture ground with Antofagasta Minerals, the mining arm of Antofagasta PLC (ANTO-L).
It also plans further drilling at its Debarwa deposit to increase its size.
The U.N. imposed sanctions for the first time against Eritrea on Dec. 23, claiming the state in east Africa is aiding Islamist insurgents in nearby Somalia.
Eritrea denies allegations that it is supplying al Shabaab rebels with money and arms to fight a U.N.-backed transitional government in Somalia.
In early October Sunridge entered into an agreement with Antofagasta Minerals, in which the latter will fund US$10 million of exploration over a five-year period to earn a 60% interest in the exploration areas of the Asmara project.
The exploration agreement excludes Sunridge’s existing development areas made up of four National Instrument 43-101 approved deposits: Emba Derho, Debarwa, Adi Nefas and Gupo.
Emba Derho is a VMS copper-zinc-gold deposit with the potential to become a large open pit mine; Debarwa is a VMS copper-gold-zinc deposit, with the possibility of becoming a low-cost, high-grade copper and gold operation; Adi Nefas is a VMS zinc-copper-gold deposit about 6 km from Emba Derho; and Gupo Gold is a shallow gold deposit.
“At this time we do not know anything more than that which is reported in the press and our press release,” Don Halliday, Sunridge’s executive vice president, wrote in response to emailed questions from The Northern Miner. “We do think, at this time, that it will not impact our exploration work as it is a travel restriction against government only. We have had discussions with Antofagasta and they are planning to go ahead with the planned 2010 programs. We are currently funded, $8.3 million, for the programs for 2010 and are not seeking additional funds.”
The 700-sq-km Asmara project in central Eritrea lies to the north, south and west of the capital city of Asmara. The Eritrean government has a 10% free carried interest in the project.
In mid-afternoon trading in Toronto, Sunridge was trading at 44.5¢ per share, down 16% from its 53¢ per share closing price on Dec. 24.
The company has about 76 million shares outstanding and $8.3 million in cash.
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