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Sunridge Gold Corp. announces that the initial 5,000 metre diamond drill program on the Besakoa copper/zinc/gold volcanogenic-massive-sulphide (VMS) project in Madagascar is now complete.
Core samples have been shipped to the laboratory and assay results are expected next month. In addition, Sunridge has notified the owners of the project, Majescor Resources Inc., that it has completed its $2 million work obligation on the property, has issued 300,000 Sunridge common shares to Majescor and confirms its intention to gain a 50% ownership of Daraina Exploration S.A.R.I. the owner of the Besakoa Project under the terms of the September 15, 2008, option agreement with Majescor. The recently completed drill program tested a number of high-priority VMS-style targets which have been defined by Sunridge personnel using airborne and ground geophysical surveys (electromagnetics, magnetics, gravity and audio-magneto-tellurics) soil geochemical surveys, geological and structural mapping and VMS gossan prospecting. Geologically the property is underlain by Neoproterozoic volcano-sedimentary shield rocks, a geological setting similar to the company's deposits in Eritrea where Sunridge has been successful in defining large amounts of copper, zinc and gold in a series of VMS deposits. The Besakoa property covers over 60 square kilometres and is located in south central Madagascar and can be accessed by road from the port city of Toliara. Agreement Sunridge has the right to acquire an additional 25% (aggregate 75%) of Daraina by spending an additional $2,500,000 by September 15, 2012, and by issuing Majescor an additional 500,000 Sunridge common shares. Upon acquiring a 75% interest in Daraina, Sunridge will have a one-year period in which to elect to acquire the remaining 25% interest at the fair value determined at that time by an independent valuation or as agreed between the parties. Once agreed, Sunridge can pay the purchase price in cash or, at the election of Sunridge, in the equivalent value of Sunridge common shares subject to regulatory approval. If Sunridge acquires a 100% interest in Daraina, Majescor retains a 1% net smelter return royalty on the Besakoa project, half of which can be purchased by Sunridge for $1,000,000. If the Besakoa project is brought into commercial production, Sunridge will be obliged to pay the original owners of the project $1,000,000. |
