Sunridge Gold Corp. (TSX VENTURE:SGC) has reported encouraging results from the initial exploration program on the gold/copper/zinc Besakoa project, Madagascar.
Recent work has identified numerous volcanogenic massive sulphide (VMS) targets which have strong similarities to the Company's Asmara Project in Eritrea where the Company has been successful in defining large amounts of copper, zinc and gold. Sunridge management believes that the Besakoa project may represent a new emerging VMS district.
Highlights of the Initial Exploration Program:
- Surface mapping and sampling has identified over 30 gossans on the project which represent the surface expression of VMS systems.
- Over 9,000 soil samples have been taken from the property and results show at least 10 strong copper, zinc, gold, and lead geochemical anomalies between 1 and 4 kilometres in length many of which are coincident with VMS gossan outcrop.
- A ground gravity survey was conducted for the first time over large areas of the property. The results have defined numerous large (longer than 1 kilometre) strong (0.5 to 1 milligal) gravity anomalies many of which are coincident with elevated base and precious metal values.
- Many of the geochemical and gravity anomalies are coincident with electro-magnetic (EM) anomalies defined in a previous airborne EM survey.
- An AMT (Audio-Magneto-Telluric) geophysical survey is currently being conducted over most of the anomalies with the goal of outlining electrical conductors created by massive sulphide mineralization.
- Most of the anomalies have never been drilled and Sunridge plans to start a drilling program at Besakoa early next year.
"We are extremely encouraged with the results from the initial exploration program," states David Daoud, Sunridge's Exploration Manager. "The coincident surface gossans, strong soil and gravity anomalies as well as airborne EM conductors are very similar to the initial exploration data collected at both the Asmara Project and Nevsun's Bisha Project in Eritrea. We look forward to drilling what could be a new VMS district at Besakoa."
The Besakoa property covers over 60 square kilometres and is located in south central Madagascar and can the accessed by road from the port city of Toliara. Geologically the property is underlain by Neoproterozoic volcano-sedimentary shield rocks, a geological setting similar to Sunridge's and Nevsun's VMS projects in Eritrea. Sunridge has had great success discovering and developing large VMS deposits at their Asmara Project over the past 5 years. Sunridge geologists have applied the same exploration techniques used in the discovery and development of VMS drill targets in Eritrea to the initial exploration program at Besakoa. The "high priority" targets at the Besakoa Project are comprised of strong linear gravity anomalies coincident with strong base metal soil geochemical anomalies, linear airborne EM conductors and are located adjacent to VMS gossans – the weathered surface expression of VMS-style mineralization.
The western part of the Besakoa property is considered by Sunridge management to be prospective for vanadium as it represents a northern extension of Energizer Resources Inc.'s (EGZ:TSX.V) adjacent Green Giant vanadium deposit. A one kilometre wide by two kilometre long area of vanadium mineralization associated with graphitic meta-sediments has been defined by Sunridge geologists by soil geochemistry sampling and rock prospecting.
A large gossan similar to those found on the Asmara project was discovered in the 1950s by the French Bureau de Recherches Géologiques et Minières (BRGM). Subsequent drilling by the BRGM established the presence of primary sulphide mineralization underlying the gossan outcrop. In addition, Majescor Resources Inc. (MAJ:TSX.V), drilled another 8 short holes in 2007 to verify the BRGM drilling. However, the majority of the property has not been systematically explored particularly by gravity surveys and until recently most of the gossans outcropping on the project had not been sampled or drilled.
Sunridge can earn a 100% in the Besakoa project. Sunridge will earn an initial 50% interest by spending $2,000,000 ($500,000 spent) by September 2011 and by issuing 500,000 Sunridge shares (200,000 issued) to Majescor. Upon acquiring a 50% interest in Besakoa, Sunridge will then have the right to acquire an additional 25% (aggregate 75%) by spending an additional $2,500,000 by September 15, 2012 and by issuing an additional 500,000 Sunridge shares.
Upon acquiring a 75% interest in the Besakoa project, 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 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 the Besakoa project, Majescor retains a 1% net smelter return royalty, 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.
Michael J. Hopley the President and Chief Executive Officer of Sunridge is the Qualified Person for Sunridge and he is the person responsible for preparation of the technical information contained in this news release.
Source: Sunridge Gold Corp.