Sunridge completes drilling at Besakoa project, reaches 50% ownership

Vancouver-based Sunridge Gold Corp (CVE:SGC) said Monday that it has completed its 5,000 metre diamond drill program and confirmed its intention to gain a 50% stake in the Besakoa project in Madagascar.

The completed drill program tested many high-priority volcanogenic-massive-sulphide targets that Sunridge defined using airborne and ground geophysical surveys.

The mineral explorer said the property is underlain by Neoproterozoic volcano-sedimentary shield rocks, a geological setting similar to its deposits in Eritrea where Sunridge has been successful in defining large amounts of copper, zinc and gold in a series of VMS deposits.

Sunridge said core samples have been shipped to the laboratory and test results are expected next month.

Additionally, the Canadian-based miner has notified Majescor Resources (CVE:MJX) that it has spent its $2 million exploration work and issued 300,000 shares to Majescor confirming its intention to gain 50% ownership of Daraina Exploration, the owner of the Besakoa project.

Sunridge can earn a total of 75% of Daraina if it spends an extra $2.5 million by Sept. 15, 2012 and by issuing Majescor another 500,000 shares. After one-year, Sunridge can opt to buy the remaining 25% stake in Daraina, whereby Majescor will retain a 1% net smelter return royalty on the Besakoa project.

The Besakoa property covers over 60 kilometres and rests in south central Madagascar and can be accessed by road from the port city of Toliara.

Sunridge Gold Corp explores and develops precious and base metal projects on the Asmara project in Eritrea and exploration properties in Madagascar.

The Vancouver-based company’s stock fell slightly by 10 cents, or 1.64%, to trade at 60 cents Monday late morning.