Monday, 14 May 2012

Ocean Equities sees "positive economics" of Sunridge's Asmara Project

Ocean Equities Monday commented on Sunridge Gold's (CVE:SGC)(OTCQX:SGCNF) feasability study for its Debarwa copper-gold-zinc deposit, part of the Asmara project in Eritrea.

Sunridge said the Debarwa feasability study showed a net present value of $71 million at a 10 percent discount rate, an internal rate of return of 41 percent, and payback in 1.1 years from start of production.

Initial capital costs were estimated at $140 million, including contingency and owner's costs.

Total metal production was seen at 116 million pounds (52,576 tonnes) of copper, 78,000 ounces of gold and 1.3 million ounces of silver.

In a research note, capital markets firm Ocean Equities said: "The publishing of a positive feasibility study on Debarwa gives us comfort that the full FS on the Asmara Project will provide further positive economics to warrant development of the integrated
Asmara project.

"We believe Debarwa will not be developed on a standalone basis but developed and integrated alongside the complete Asmara project."

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