This morning Sunridge Gold announced that Micon has been selected to complete an “independent due diligence review” of the Asmara Project and the recently completed Feasibility Study on behalf of the potential financing providers to the project. Endeavour Financial Limited will lead this process until the lender group is formed. Endeavour provides financial consulting services to Sunridge with respect to debt financing requirements for the Asmara Project and they have unique experience in Eritrea having previously advised Nevsun Resources Limited.
Micon’s review will cover all aspects of the project including mineral Resources/Reserves, metallurgy, processing plant and infrastructure, mine design, economic analysis, and environmental and social engagement programs. Micon’s team has already been to the site and will conduct its review of the FS during Q3,2013.
“Micon’s due diligence review of theAsmara Project for the banks is an important step towards being able to debt finance the AsmaraMine into production” saysMichaelHopley, President and CEO.
The recent Feasibility 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 Net Present Value (“NPV”) of $837 million. The Study outlines a three-phase staged start-up mining plan which would initiate production in 2015.
Despite, the terrible market conditions, these guys have not slowed down. The recently completed bankable feasibility study demonstrated that the mine can produce a tremendous amount of copper, zinc, gold, and silver and with very strong economics. Management is looking to finance the project through a combination of debt, selling off-take, and government participation. Alternatively, believe Sunridge can soon have options from the large mining companies interested in the copper and zinc.
Simply put, the current share price in no way represents what SGC has done up to now but is what it is due to the worse junior resource market in my 30 years in this business. If there’s another bull market in juniors in my lifetime, the biggest fear I personally have owning nearly 3 million shares of SGC is someone will take it over before I ever see the real value it should be at.