Name and Location
Debarwa volcanogenic-massive-sulphide copper/gold/zinc project, Eritrea.

Client
Sunridge Gold.

Project Description
An independent feasibility study on the Debarwa deposit, part of the Asmara project, has concluded that operating Debarwa as a standalone mining operation is economically viable. The feasibility study indicates that Debarwa will be best mined by openpit methods up to a maximum rate of 7.5-million tons of rock a year. The openpit is estimated to contain 1.3-million tons of ore and 18-million tons of waste rock at an overall strip ratio of 14:3:1 waste tons to ore tons.

Mining and processing at Debarwa is expected to take place over 4.7 years and is proposed to be conducted in two phases.

Phase 1 involves direct shipping ore, supergene and primary copper ores.

Phase 2 involves oxide and transitional gold and silver ores.

Value
Initial capital costs are estimated at $140.5-million, including prestrip mining at a cost of $27.3-million, owner’s costs of $15.1-million and a contingency of $7.8-million. The expansion capital for Phase 2 (gold carbon-in-leach plant) is estimated at 18.8-million.

Closure costs are estimated at an additional $16.5-million.

Duration
Initial production and shipping of DSO could start in the fourth quarter of 2014.

Latest Developments
On May 2, 2012, Sunridge announced the positive results of a prefeasibility study on the Asmara North deposits, which integrated the Debarwa deposit into a single mining and processing operation. The prefeasibility study considered the trucking of ore from the Debarwa deposit about 40 km south of Emba Derho to a centralised operating facility located near the Emba Derho deposit. The prefeasibility study showed very robust economics.

The Debarwa feasibility study, in contrast, considers the technical and economic viability of operating Debarwa as a standalone operation with its own processing plant and ancillary facilities. Based on the results of the feasibility study now under way (known as the Asmara project feasibility study), Sunridge will decide whether Debarwa will best be operated as a standalone mine or as a supplier of ore to the proposed central milling facilities near Emba Derho.

The recently started feasibility study on the Asmara North deposits will also examine the integration of the Debarwa deposit with the Asmara North deposits into one operation.

Key Contracts and Suppliers
Senet (feasibility study).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Sunridge Gold tel +1 604 536 2711, fax +1 604 536 2788 or email info@sunridgegold.com.
Senet, tel +27 11 409 1300 or fax +27 11 608 2142.