Sunridge Gold Reports High Grade Assay Values From Adi Nefas, Eritrea

 

press release: Sept. 1, 2011, 8:02 a.m. EDT

 

 

Highlights:

        
        --  NG 101-D intersected 4.60 metres of 9.13% zinc, 4.93 g/t gold and 1.20%
            copper
        --  AN GT 02 intersected 5.04 metres of 11.21% zinc, 4.07 g/t gold and
            5.85% copper
        --  AN GT 04 intersected 15.99 metres of 10.36% zinc, 3.96 g/t gold and
            1.97% copper
        --  AN GT 07 intersected 26.13 metres of 13.52% zinc, 1.88 g/t gold and
            1.23% copper
        
        


The mineralized zone was successfully expanded by diamond drill holes AN-100 and AN-101 which extended the deposit 20 metres to the north and AN-GT-04, which extended the deposit to depth by 40 metres in the south.

Michael Hopley, Sunridge's President and CEO states, "These drill results further confirm the very high value of the mineralized material found at Adi Nefas when all metal values are taken into account. We believe that the current prefeasibility study being conducted on the Asmara North Deposits, which includes Adi Nefas, will show that this deposit will add significant value to the project economics by providing a higher grade "sweetener" feed to a process plant located at Emba Derho."

A summary of the assay results from the recent drill program at Adi Nefas are as follows:

        
        -----------------------------------------------------------------------
        ----
        Drill        From      To Interval  Gold  Silver Copper   Zinc         True
        hole #     Metres  Metres   Metres   g/t     g/t      %      %    Thickness
        ---------------------------------------------------------------------------
        NG-100-D   106.25  111.60     5.35  2.45   38.62   0.33   8.20     90%-100%
        ---------------------------------------------------------------------------
        NG-101-D    75.90   80.50     4.60  4.93   72.79   1.20   9.13     90%-100%
        ---------------------------------------------------------------------------
        AN-GT-02    76.20   81.24     5.04  4.07  200.95   5.85  11.21  approx. 80%
        ---------------------------------------------------------------------------
        AN-GT-03    63.10   73.85    10.75  3.25  111.79   3.79   4.04  approx. 50%
        ---------------------------------------------------------------------------
        AN-GT-04   231.08  247.07    15.99  3.96  116.37   1.97  10.36  approx. 80%
        ---------------------------------------------------------------------------
        AN-GT-06   162.40  191.00    28.60  1.59   50.87   0.68   3.45  approx. 50%
        ---------------------------------------------------------------------------
        AN-GT-07   194.05  220.18    26.13  1.88   65.39   1.23  13.52  approx. 50%
        ---------------------------------------------------------------------------
        AN-GT-08   167.28  182.90    15.62  0.53   46.68   0.37   7.20  approx. 60%
        ---------------------------------------------------------------------------
        
        


NOTE: A plan map has been posted on the Company's website – www.sunridgegold.com . There were no significant assays from drill hole AN-GT-01 and AN-GT-05. Drill Hole AN-GT-01 was drilled at the location of proposed underground portal to collect geotechnical data and AN-GT-05 was drilled in footwall to support underground mine design.

The Asmara North Deposits Prefeasibility Study

The Prefeasibility Study on the Asmara North Deposits is being conducted by Snowden Mining Industry Consultants Inc. and GBM Minerals Engineering Consultants Ltd. The Asmara North deposits are made up of three distinct deposits:

        
        --  Emba Derho VMS deposit is a large surface minable 62 million tonne
            copper-zinc-gold volcanogenic massive sulphide (VMS) deposit that was
            the subject of a positive scoping study by Wardrop Engineering (UK) in
            2009.
        --  The Adi Nefas deposit located approximately 6 kilometres away from Emba
            Derho is a much smaller but higher grade zinc-gold-copper VMS deposit.
        --  The Gupo gold deposit is approximately 8 kilometres from Emba Derho and
            is a near-surface structurally controlled gold deposit that was mined
            during the Italian colonial period.
        
        


The prefeasibility study will consider a centralized process plant using flotation for the recovery of the base metals and will study various mining options over a forecast life of mine of between 10 and 14 years. The study will further investigate process options for the development of a gold recovery plant to process gold mineralized material from the "gold cap" at the Emba Derho deposit, the nearby Gupo gold deposit and other possible nearby surface zones of gold mineralization to enhance economics of the deposits. The completion of this report is expected in the first quarter of 2012.