Shares of Sunridge Gold (CVE:SGC) rose over 8% after the exploration and development company gave an update on its drill program at its Adi Nefas zinc-gold-copper deposit in Eritrea.
The Vancouver-based company said that hole NG 101-D intersected 4.60 metres of 9.13% zinc, 4.93 grams per tonne (g/t) gold and 1.20% copper, while hole AN GT 02 returned 5.04 metres of 11.21% zinc, 4.07 g/t gold and 5.85% copper.
Other notable holes included AN GT 04, which intersected 15.99 metres of 10.36% zinc, 3.96 g/t gold and 1.97% copper; and AN GT 07, which found 26.13 metres of 13.52% zinc, 1.88 g/t gold and 1.23% copper.
Investors welcomed the latest results, with Sunridge shares up 8.45% at $0.77 as at 10.59 am EDT on Toronto's Venture Exchange.
The deposit is located 6 km east of the large Emba Derho Deposit, which is a large surface minable 62 million tonne copper-zinc-gold volcanogenic massive sulphide (VMS) deposit on the company's Asmara project in the east African country. Adi Nefas is a much smaller but higher grade zinc-gold-copper VMS deposit.
Sunridge's President and CEO Michael Hopley said: "These drill results further confirm the very high value of the mineralized material found at Adi Nefas when all metal values are taken into account."
"We believe that the current prefeasibility study being conducted on the Asmara North Deposits, which includes Adi Nefas, will show that this deposit will add significant value to the project economics by providing a higher grade "sweetener" feed to a process plant located at Emba Derho," Hopley said.
Sunridge said a prefeasibility study for the Asmara North Deposits, which include Emba Derho, Adi Nefas and Gupo Gold, is expected in the first quarter of 2012. As well as Eritrea in Eastern Africa, Sunridge has exploration properties in Madagascar.
The drill program was designed to test for expansion of the deposit to the north and at depth, as well as to collect geotechnical and metallurgical samples for the current prefeasibility study on the Asmara North Deposits.
The company said the mineralized zone at Adi Nefas was successfully expanded by diamond drill holes AN-100 and AN-101, which extended the deposit 20 metres to the north, and by AN-GT-04, which extended the deposit to depth by 40 metres in the south.
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