January Developing Copper, Zinc and Gold Deposits on the Asmara Project, Eritrea. November 2010

Transcription

1 November 2010 January 2014 Underground workings at Debarwa copper-gold deposit Developing Copper, Zinc and Gold Deposits on the Asmara Project, Eritrea

2 Eritrea and the Asmara Project Sudan Zara Bisha Mine Hambok Asmara Massawa Eritrea Asmara Ethiopia Sunridge Gold VMS/Gold Target Area Sunridge Gold VMS/Gold Deposits Nevsun s Bisha VMS Gold-Copper-Zinc Mine Other VMS/Gold Projects 2

3 Asmara Project Overview Completed May 2013! BFS - Central processing facility at Emba Derho with 3 satellite deposits: Emba Derho million tonnes (Measured and Indicated) resource containing 1.0 Blbs Cu, 2.07 Blbs Zn, 506,000 oz Au, 19 M oz Ag Adi Nefas Mt (Indicated) resource at, 10.1% Zn, 3.3 g/t Au, 1.8%Cu & 115 g/t Ag, same format Debarwa Mt (Measured and Indicated) resource containing 200 Mlbs Cu, 74 Mlbs Zn, 180,000 oz Au, 2.94 M oz Ag Gupo Gold Mt (Indicated) resource at 1.52 g/t Au Development and Exploration: Adi Rassi Mt (Inferred) resource at 0.54% copper and 0.33 g/t gold 3 Kodadu Gold Target (Inferred) resource of 990,000 tonnes with an average grade of 1.24 g/t gold & 1.6 g/t silver

4 Eritrea Asmara Safe, beautiful, and the capital of the State of Eritrea Eritrea Population ± 4 million Mining code based on Northern Territory, Australia. Business in English. Excellent infrastructure; paved roads, grid power, paved road to port of Massawa Nevsun Resources has successfully operated the Bisha Mine for almost 2 years showing strong earnings 4

5 Asmara Project Highlights Feasibility Study on the 4 advanced projects completed May 2013 demonstrating very strong economics; NPV (10%) = $692 million, IRR = 34% Feasibility Study outlined a robust mining plan with a 3 phase staged start-up with Phase 1 production beginning in 2015 Phase I (DSO and Gold Production) initial capital costs estimated to be only $46 m Full production to be achieved in 3 years first 8 years average annual production: 65 million lbs. (29,000 t) copper 184 million lbs. (83,000 t) zinc 42,000 oz gold 1 million oz silver Project has government participation (ENAMCO) in a mining friendly jurisdiction Applied for mining license Q Significant exploration potential. Pipeline deposits Adi Rassi and Kodado now 5 th and 6 th resources on the Asmara Project. 5

6 ENAMCO Eritrean National Mining Corporation ( ENAMCO ) to acquire a 30% paid participating interest in the Asmara Project in Eritrea. ENAMCO Standard Agreement Structure: This 30% interest is in addition to ENAMCO s existing right to receive a 10% non-assessable interest that will be carried to production by the participating partners. Eritrea s 10% non-assessable interest would be carried 2/3 s by Sunridge and 1/3 by ENAMCO ENAMCO will contribute 33 1/3 % of all development costs as they are incurred. This reduces Sunridge s capital cost by one third, as well as any ongoing expenditures on the project. ENAMCO exercised their right to acquire the 30% paid participating interest in the Asmara Project in July Negotiations between ENAMCO and Sunridge are ongoing to determine the purchase price for the 30% of the Project and are expected to be complete in early

7 Asmara Project Contained Metals Asmara Project - Contained Metal in Measured and Indicated Resources Deposit Copper millions of lbs Zinc millions of lbs Gold thousands oz Silver million oz Emba Derho , Debarwa Adi Nefas Gupo Gold Totals 1, (574,000 tonnes) 2, (1,158,000 tonnes)

8 Asmara Project Feasibility Study Central processing facility at Emba Derho and an integrated mining operation with 3 satellite deposits Feasibly Study completed May 2013 Lead engineer - SENET Pty Ltd, supported by Snowden, Knight Piesold, and Blue Coast Metallurgy Mining License application Q Ideal for open pit mining Processing Facility to be located near the Emba Derho Deposit 8

9 Asmara Project Feasibility Study - Emba Derho Copper-Zinc-Gold Deposit Favorable geometry for open pit mine Emba Derho Resource Model 9

10 Asmara Project Feasibility Study - Emba Derho Copper-Zinc-Gold Deposit Emba Derho -Summary of Measured Mineral Resource Material Cut-off Tonnes Copper Zinc Gold Silver Type (million) (%) (%) (g/t) (g/t) Cu Supergene 0.5% Cu Copper-rich Primary 0.3% Cu Zinc-rich Primary <0.3% Cu, >1.0% Zn TOTAL Emba Derho -Summary of Indicated Mineral Resource Material Cut-off Tonnes Copper Zinc Gold Silver Type (million) (%) (%) (g/t) (g/t) Cu Supergene 0.5% Cu Copper-rich Primary 0.3% Cu Zinc-rich Primary <0.3% Cu, >1.0% Zn TOTAL Sunridge Gold Corp: Mineral Resource Estimate Update, Emba Derho Deposit, Eritrea. NI Technical Report prepared by Snowden Mining Industry Consultants Inc. for Sunridge Gold Inc. with contributions by Blue Coast Metallurgy Ltd. 110 pages. Effective date 6 February 2012.

11 Asmara Project Feasibility Study - Emba Derho Copper-Zinc-Gold Deposit Emba Derho -Summary of Measured and Indicated Mineral Resource Zone Cut-off grade tonnes Copper Zinc Gold Silver (million) % % g/t g/t Gold Oxide 0.5 g/t Au Cu Supergene 0.5% Cu Copper-rich Primary 0.3% Cu Zinc-rich Primary <0.3% Cu, >1.0% Zn TOTAL 70.0 Sunridge Gold Corp: Mineral Resource Estimate Update, Emba Derho Deposit, Eritrea. NI Technical Report prepared by Snowden Mining Industry Consultants Inc. for Sunridge Gold Inc. with contributions by Blue Coast Metallurgy Ltd. 110 pages. Effective date 6 February

12 Asmara Project Feasibility Study - Emba Derho Copper-Zinc-Gold Deposit Total Contained Metal at Emba Derho Measured and Indicated Zone Cut-off grade Tonnes (miilion) Copper (M llbs) Zinc (M lbs) Gold (k oz) Silver (M oz) Gold Oxide 0.5 g/t Au Cu Supergene 0.5% Cu Copper-rich Primary 0.3% Cu , Zinc-rich Primary <0.3 % Cu, >1.0 % Zn , TOTAL (452,000 tonnes) 2,072.7 (940,000 tonnes) Sunridge Gold Corp: Mineral Resource Estimate Update, Emba Derho Deposit, Eritrea. NI Technical Report prepared by Snowden Mining Industry Consultants Inc. for Sunridge Gold Inc. with contributions by Blue Coast Metallurgy Ltd. 110 pages. Effective date 6 February

13 Asmara Project Feasibility Study - Debarwa Deposit Resource Debarwa -Summary of Measured Mineral Resource Material Type Oxide Transition Cut-off Au 0.5g/t Au 0.5g/t Supergene Cu 0.5% Primary (Cu) Cu 0.5% Primary (Zn) Zn 2.0% Tonnes (,000) Copper (%) Zinc (%) Gold (g/t) Silver (g/t) Totals 434 Debarwa-Summary of Indicated Mineral Resource Material Type Cut-off Tonnes (,000) Copper (%) Zinc (%) Gold (g/t) Silver (g/t) Oxide Au 0.5g/t Transition Au 0.5g/t Supergene Cu 0.5% 1, Primary (Cu) Cu 0.5% Primary (Zn) Zn 2.0% (Cu<0.5%) Totals 2, * Debarwa Copper Gold Deposit Eritrea Technical Report on Additional Drilling and Revised Mineral Resource Estimates. NI Technical Report prepared by and for Sunridge Gold Corp. with contributions by AMC Consultants (UK) Limited and Blue Coast Metallurgy Ltd. 188 pages. Effective date 18 August 2011.

14 Asmara Project Feasibility Study - Debarwa Deposit Resource Location of Direct Shipping Option (DSO) tonnage Debarwa Measured and Indicated Resources* Material Tonnes Copper Zinc Gold Silver Type Cut-off (million) (%) (%) (g/t) (g/t) Oxide Au 0.5g/t Supergene Cu 0.5% Primary Cu 0.5% Totals DSO zone Cu 12.0% * resource estimate completed by AMC Consultants (UK) Ltd, August 11, 2011

15 Asmara Project Feasibility Study - Adi Nefas Resource Adi Nefas: High grade zinc-copper-gold VMS deposit 6 km from Emba Derho High grade material to be blended with Emba Derho Underground mine plan Measured and Indicated Resources* tonnes Gold Silver Copper Zinc Zone Cut-off (million) (g/t) (g/t) (%) (%) Primary Zn 2 % * Sunridge Gold Corp: Mineral Resource Estimate Update, Adi Nefas Property, Eritrea. NI Technical Report prepared by Snowden Mining Industry Consultants Inc. for Sunridge Gold Inc. with contributions by Blue Coast Metallurgy Ltd. 82 pages. Effective date 20 February 2012.

16 Asmara Project Feasibility Study - Gupo Gold Deposit Resource Indicated resource*: Cut of Grade g/t Au Tonnes Average Grade g/t Au Ounces of Gold , ,780 Inferred resource*: Cut of Grade g/t Au Tonnes Average Grade g/t Au Ounces of Gold 0.5 1,808, ,340 * Sunridge Gold Corp: Gupo Gold Mineral Resource Estimate Update, Adi Nefas Property, Eritrea. NI Technical Report prepared by Snowden Mining Industry Consultants Inc. for Sunridge Gold Corp. with contributions by Blue Coast Metallurgy Ltd. 97 pages. Effective date 3 April

17 Asmara Project Feasibility Study Highlights Base Case Highlights (all $ equals US dollars): NPV of $692 million at a 10% discount (pre-tax) NPV of $345 million at a 10% discount (post-tax) Internal rate of return (IRR) pre-tax 34%, post-tax 27% Payback pre-tax 4.1 production years, post-tax 4.6 years Base Case metal prices used - $3.25/lb copper, $1.00/lb zinc, $1,400/oz gold, $25.00/oz silver Initial capital cost Phase IA & IB Direct Shipping Copper Ore & Heap-Leach Gold - $46 million Initial Phase II & III flotation plant capital cost estimate - $357 million Peak Capital Funding - $354 million On site operating costs - $29.42 per tonne average through life of mine

18 Asmara Project Feasibility Study Highlights Average annual metal production over the first 8 years: 65 million pounds (29,000 tonnes) of copper 184 million pounds (83,000 tonnes) of zinc 42,000 ounces of gold 1.0 million ounces of silver Total metal production: 841 million pounds (381,000 tonnes) of copper 1,874 million pounds (850,000 tonnes) of zinc 436,000 ounces of gold 11 million ounces of silver Life of Mine 1 construction year, 15.3 production years

19 Asmara Project Feasibility Study Phase I Initial Capital Required Phase I - DSO and Gold Production (Year 1 Year 5) Phase IA DSO (Year 1 Year 2) Mining of 116,000 tonnes of high-grade DSO with an average grade of 15.6% copper, 2.96 g/t gold, and 76.8 g/t silver from Debarwa ± $46m Crushing at Emba Derho and shipping to smelter Mine and ship in 6 months Phase IB Gold production (Year 1 Year 5) Mining of the 3.0 million tonnes near-surface gold caps at Debarwa and Emba Derho followed by Gupo Gold Process at gold heap-leaching operation near the Emba Derho deposit at a rate of 1.4 million tonnes per year Phase IB average grades 1.48 g/t gold and 8.2 g/t silver Phase IB average recoveries 66.7% gold, 37.7% silver

20 Asmara Project Feasibility Study Phase II & III Initial Capital Required Phase II Supergene Copper Production (Year 2 Year 3.25) Mine and process by flotation 2.4 million tonnes of high-grade copper supergene ore from Debarwa and Emba Derho at rate of 2 million tonnes per year for 1.25 years Phase II average grades 2.25% copper, 0.76 g/t gold, 21.6 g/t silver Phase II average recoveries 79% copper, 51% gold, 58% silver Copper concentrate 25% copper, 4.2 g/t gold, 109 g/t silver Phase III Full Production (Year 3.25 Year 16.3) ± $357m Mine and process by flotation 51.0 million tonnes of primary copper and zinc ore from Emba Derho, Debarwa, and Adi Nefas at a rate of 4 million tonnes per year for 13years Phase III average grades 0.73% copper, 1.91% zinc, 0.36 g/t gold, 12.6 g/t silver Final Waste/Ore ratios 2.5:1 at Emba Derho, 9.8:1 at Debarwa and 1.7:1 at Gupo Adi Nefas to be mined using underground long hole bench retreat ranging between 150,000 and 470,000 tonnes per year for a total of million tonnes mined over 6 years and blended with ore from Emba Derho Phase III recoveries average 86% copper, 86% zinc, 48% gold, 44% silver Copper concentrate 25% copper, 7.9 g/t gold, 255 g/t silver Zinc concentrate 57% zinc

21 Asmara Project Feasibility Study - Reserves Mineral Reserves by Classification Rock type Tonnes (kt) copper (%) Proven zinc (%) gold (g/t) silver (g/t) Emba Derho Primary 4, Debarwa Oxide Debarwa Transition Debarwa Supergene Debarwa Primary Total proven 4,861 Probable Emba Derho Supergene 1, Emba Derho Primary 44, Debarwa Oxide Debarwa Transition Debarwa Supergene Debarwa Primary Adi Nefas Primary 1, Gupo Oxide Gupo Sulfide Total Probable 51,723 Total Proven and Probable 56,584 21

22 Asmara Project Feasibility Study Metal Production by Phase Year Total PRODUCTION Oxide Heap Leach Metal Recovered Gold (ounces) 96,930 11,210 51,213 16,169 17, Metal Recovered Silver (ounces) 294,572 40, ,103 71, Copper Concentrate DSO + Copper Concentrate (Mt) Copper Conc Cu Grade (%) Copper Conc Au Grade (g/t) Copper Conc Ag Grade (g/t) Metal Recovered Copper (Mlb) Metal Recovered Copper (Mt) Metal Recovered Gold (ounces) 339,353 11,084 29,949 28,712 54,775 42,910 34,099 26,101 31,519 15,921 18,254 9,854 4,540 10,204 10,580 8,984 1,867 Metal Recovered Silver (ounces) 10,927, , , ,016 1,839,914 1,443,118 1,115, ,265 1,060, , , , , , , ,867 61,812 Zinc Concentrate Zinc Concentrate (Mt) Zinc Conc Zn Grade (%) Metal Recovered Zinc (Mlb) 1, Metal Recovered Zinc (Mt) TOTAL RECOVERED METAL Gold (ounces) 436,283 11,210 62,297 46,118 46,231 55,594 42,910 34,099 26,101 31,519 15,921 18,254 9,854 4,540 10,204 10,580 8,984 1,867 Silver (ounces) 11,221,914 40, ,429 1,044, ,266 1,839,936 1,443,118 1,115, ,265 1,060, , , , , , , ,867 61,812 Copper (Mlb) Zinc (Mlb) 1,

23 Asmara Project Feasibility Study Asmara Project Cash Flow (Base Case) 23

24 Asmara Project - Off Site Facilities Concentrate Transport 40t trucks specialized for road conditions Round trip in 8 hours Massawa Port Rotainer container rotations system Estimated 1,000 to 1,200 containers at 4Mtpa System at optimal loading conditions can move 1,000t/hr 24

25 Adi Rassi Copper-Gold Deposit Adi Rassi: Sunridge s 5 th deposit of the Asmara Project, located 10 km east of Debarwa The resource area is open for expansion in most directions Positive initial metallurgical results Copper and gold mineralization associated with quartz veins and breccia zones along a major shear zone that trends north-south over 3 km Cut off % Cu Eq Tonnes ( 000s) Copper (%) Gold (g/t) Copper ( 000 lbs) Gold ( 000 oz) o/p and 0.72 u/g 15, , * Fladgate Exploration Consulting, December 1, 2012

26 Kodadu Gold Target Kodadu Gold Target: Inferred Mineral Resource of 990,000 tonnes with an average grade of 1.24 g/t gold & 1.6 g/t silver Contained metal = 39,000 ounces of gold & 51,000 ounces of silver in the near surface oxide Less than 25 km from planned central operating facility near the Emba Derho deposit Initial metallurgical results show gold can be recovered by heap-leaching The resource area is open for expansion Gold mineralization in a one kilometre shear zone Contained Metal Cut-off Grade Tonnes Gold Grade Silver Grade Gold Silver ('000s) (g/t) (g/t) ('000 oz) ('000 oz) Fladgate Exploration Consulting Corp. - Effective Date 20 May, 2013

27 27 Asmara Project Timeline

28 Outlook Mining License: permitting process for the Asmara mine was initiated in December 2013, along with the submittal of the Social and Environmental Impact Assessment (SEIA) report. The mining license permitting process is expected to take 9-12 months. Eritrean National Mining Corporation ( ENAMCO ): negotiations to determine the price they will pay to purchase 30% of the project from the Company are ongoing and expected to be completed in early Project Financing: discussions initiated with potential debt financing lenders, which include commercial and development banks, export credit agencies and equipment suppliers, commodity off-take companies and royalty and streaming groups. Micon International Limited completed an independent "due diligence" review of the Asmara Project, which is now available to potential lenders. Engineering: eligible engineering firm candidates for engineering, procurement and construction management (EPCM) of the Asmara mine were identified in late Tendering on the EPCM is expected in mid 2014 with basic design work beginning soon after the award of a contract to the successful firm. Continuing exploration activities on pipeline deposits on the Asmara Project; recently initial resource estimates were announced for two new deposits Adi Rassi, a large copper-gold deposit, and Kodadu a surface gold deposit. Interest from major companies: currently in discussions with a number of interested parties that could lead to a potential acquisition of the Company or some/all of the Asmara Project. There can be no assurance that any transaction will occur, or as to the timing, structure or terms of any transaction.

29 Sunridge Gold Management & Directors Michael Hopley President/C.E.O., Director Craig Angus Chairman Greg Davis VP Business Development Scott Ansell VP Project Development David Daoud Exploration Manager Christopher Attwood Operations Manager Dan O Brien Chief Financial Officer Doris Meyer Director & Corporate Secretary Amanuel Arafine Eritrean Country Manager, Eritrea Neil O Brien Director (Senior VP Lundin Mining) Stephen Gatley Director (GM, Lundin Mining) Mark Corra Director (CFO of B2 Gold) Eric Edwards Director 29

30 Share Structure: January 2014 Symbol: SGC: TSX.V SGCNF: OTCQX Shares Outstanding: 210 million Options: wt. avg = $0.91: 15,167,500 Warrants: 64,364,136 Fully Diluted: 290 million Market Cap: ~$40 million Asmara Project Core Storage Facility West Georgia Street, Vancouver, BC, V6E 3C9 T F [email protected] -

31 31 SGC 12 Month Chart

32 SGC Analyst Coverage Haywood Securities Inc. Stefan Ioannou, Tel: (416) Ocean Equities Ltd Adam Lucas, Mining Analyst, Tel: +44 (0)

33 DISCLAIMER: General Disclaimer: Sunridge Gold Corp. "Sunridge", has taken all reasonable care in producing and publishing information contained in this presentation. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained in this presentation. Sunridge does not warrant or make any representations regarding the use, validity, accuracy, completeness or reliability of any claims, statements or information in this presentation. The information is not a substitute for independent professional advice before making any investment decisions and Sunridge recommends seeking independent professional advice before making any investment decisions concerning Sunridge. Furthermore, you may not modify or reproduce in any form, electronic or otherwise, any information in this presentation, except for personal use, unless you have obtained our express prior written consent. Forward-Looking Statements: This presentation includes certain forward-looking statements. All statements other than statements of historical fact, included in this release, including without limitation statements regarding potential mineralization and resources, exploration results, and future plans and objectives of Sunridge are forward-looking statements that involve various degrees of risks and uncertainties. Any mineral resource estimates contained herein are only estimates and no assurance can be given that any particular level of recovery of minerals will be realized or that an identified resource will ever qualify as a commercially mineable or viable deposit which can be legally and economically exploited. In addition, the grade of mineralization ultimately mined may differ from the one indicated by the drilling results and the difference may be material. Any estimated resources described herein should not be interpreted as assurances of mine life or of the profitability of future operations. There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Sunridge s expectations include, among others, risks related to the worldwide price of mineral commodities, the actual results of current exploration activities, unexpected delays in project development, conclusions of economic evaluations, changes in market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, uncertainty of future profitability and the uncertainty of access to capital. Although Sunridge has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Sunridge does not assume any obligation to revise or update any forwardlooking statements after the date of this document or to revise them to reflect the occurrence of future unanticipated events, except as may be required pursuant to applicable securities laws. Technical Disclosure This presentation includes disclosure of scientific and technical information, as well as information in relation to the estimation of mineral resources and reserves with respect to Sunridge s mineral properties. Certain information in this presentation is summarized from various technical reports filed on the SEDAR website under Sunridge s profile at The technical reports should be consulted for further information. Sunridge s disclosure of mineral reserve and resource information is governed by National Instrument Standards of Disclosure for Mineral Projects ( NI ) under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the CIM ) Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as may be amended from time to time by the CIM. The technical contents of this presentation has been reviewed and approved by Michael J. Hopley, CPG, President and CEO of Sunridge, who is a qualified person within the meaning of NI

34 Appendix: Asmara Project Feasibility Study Average Operating Costs Heap-Leach Phase IB Flotation Phase II & III Mining $/t ore mined Process $/t ore processed TOTALS On site operating costs average $29.42 per tonne through life of mine. 34

35 Appendix: Asmara Project Feasibility Study Capital Costs Phase I Phase II Phase III Total $ million $ million $ million $ million Pre-strip mining and mining equipment (includes all costs incurred until initiation of copper processing by flotation) (excludes HL & DSO opex) Phase I Plant and Equipment Copper circuit facility Zinc circuit facility Site development, utilities and facilities Water facilities Tailings facilities Debarwa facilities Adi Nefas facilities Gupo facilities Adi Nefas development Engineering, procurement, construction management (EPCM) First fills (ie. fuel, reagents etc) Owner s cost s Contingency SUBTOTALS Sustaining Costs 56.0 Social Costs 14.8 Closure Costs 36.6 TOTAL

36 Appendix: Asmara Feasibility Study Sensitivity to Metal Prices: Base Case Prices Low Copper Metal Price Low Metal Price Current Metal Prices May % discount (Pretax) IRR 34% 31% 22% 33% 0% discount (Pretax) 1,791 1,596 1,026 1,638 Payback % discount (Post- tax) IRR 27% 24% 17% 26% 0% discount (Post-tax) 1,276 1, ,166 Payback Metal Prices Copper Zinc Gold 1,400 1,400 1,250 1,449 Silver

37 37 Appendix: Asmara Feasibility North Layout

38 38 Appendix: Asmara Feasibility Debarwa Layout