This morning Sunridge provided an update on their activities on their Asmara Project in Eritrea. As I have pointed out in the past, they have a very strong project that will produce large amounts of copper, zinc, gold, and silver in a jurisdiction that Nevsun Resources has demonstrated to be a place where mines can be successfully built and operated!
As today’s news release outlines, the Sunridge Team has been very busy on many fronts;
- they have been completing their social and environmental programs and will be applying for a mining license within a month,
- they continue to negotiate with the Eritrean national Mining Company (“ENAMCO”) for the purchase price for the 30% being purchased by them,
- they continue discussions with potential lenders and Micon is working to complete a due diligent study of the BFS on behalf of potential lenders,
- the selection of an engineering firm to conduct the detailed engineering work for the mine construction has begun as well as key hires necessary by the Company,
- and the Company has acknowledged that they are currently in discussions with a number of other companies that could lead to a potential acquisition of the Company or some or all of the Asmara Project.
I believe the last point to be very important! We know that many Chinese companies have been active in Eritrea in the past, particularly with the purchase of the Zara gold Project from Chalice Gold Mines, an Australian company. The Chinese especially like the Asmara Project because the recent Feasibility Study outlined a mining plan with annual production of 65 million pounds of copper, 184 million pounds of zinc, 42,000 ounces of gold, and 1.0 million ounces of silver. In addition, the mining plan offers production within a very short 2 years and a quick return on investment with the mining of the 16% copper direct shipping ore zone – an extremely high grade copper-gold zone that can merely be mined, crushed, and shipped directly to a smelter.
Because I’m a compensated consultant to SGC, own over 5.2 million shares, have close friends and readers who likely own more total than myself, I’m not going to make any further comments on SGC until further notice. It’s obvious for the company to make the disclosure of interest that its very serious and there’s more than one suitor and/or strategic possibility. I will of course comment if there’s a major related news item (or other comments made on SGC). I will say as I have for a few months now, SGC is very undervalued and there’s too many mining concerns who need what they have and can look at Nevsun Resources as an indication of what could be their future if they acquire SGC. If not for the country they are based in and the horrific bear market we’ve gone through, I would now sleep with both eyes closed when it comes to my SGC investment.
Stay tuned!