Does anyone know much about this company? Its been trading a lot lately.
Does anyone know much about this company? Its been trading a lot lately.
I have been hearing bits and pieces about this as a possible spec stock. I am not a techy but would be interested to hear if anyone else has been looking into this stock and their thoughts...
Bought into SBS @10.5 cents. Has been in a uptrend since .012 cents November 2001. Price needs to close above 11.5 cents with volume, first line of resistance. My interpretation, comments welcome.
For the fundamentalists
Gold explorer + Uranium interests
Market cap of about 50M excluding options
Holds 7.6M shares in Sunridge Gold (SGV.V) value 17.8M
Holds 6M shares in Currie Resources (CUI.V) value 2.4M
Has been operating in Africa for ten years
Has shown interest in U exploration with Joint Venture (possibly others in the pipeline?)
JORC report due this month from Zara gold project in Eritrea
Anvil Mining (AVM.ASX)bought 18% share holding in SBS 27/4/07
AVM share price $18.50 reported $80M npat 2006
SBS cash in the bank $6.8M
Have bought into this stock before it runs. dyor
there looks to be some serious seller resistance to overcome up to and over resistance levels. even relatively large volumes of the last 2 weeks have seen the price stuggle to break out. this is an old stock and it has fallen far from grace, there are probably some very stubborn holders out there to work your way through
Some serious interest in SBS today maybe bouncing off rsi bottom trendline or at least a bounce from recent lows
Brokers report just out might help rerate stock in time.
For sbs holders
Thursday, 31 May 2007
THE two faces of exploration and mining in Africa – well known to all who have invested there – were on display again this week. The Outcrop by Robin Bromby.
One was the almost breathless enthusiasm from Castle Minerals, reporting that the first ever exploration at its Akoko project in Ghana had produced a 3km-long strong and continuous gold anomaly.
The other was news from Paladin Resources that two NGOs in Malawi had started actions against the Kayelekera uranium project.
But here's the difference between now and 15 years ago: the two NGOs stated they were not against the mine being developed and in fact welcomed it.
The argument hinges on environmental and social impact issues. This is kid's play to what Africa used to be like for Australian mining companies.
Similarly, Sub-Sahara Resources (Eritrea) and Resolute Mining (Tanzania) have had recent hiccups – the latter case being over tax – which unlike in previous cases did not derail their operations.
The continent is becoming a surprisingly positive place as has been shown by growing investor interest in some stocks, although there still tends to be an "African discount" – AIM Resources and its high-grade zinc project in Burkina Faso being a prime example.
Investors have well and truly climbed aboard the Botswana story: for many years in the 1990s, it was a hard sell to convince investors that this southern African nation had a solid mining law.
Equinox Minerals and its huge copper project in Zambia, Sundance Resources and its iron ore ambitions in Cameroon, Resolute moving ahead to restart the mine at Syama in Mali – all these are testament of the sea change that has occurred in the African mining story.
Even the Democratic Republic of Congo – once a no-go country for anyone who wanted some chance to see their money again – seems favoured by backers, as Tiger Resources has shown.
And even the problems Anvil Mining experienced proved short-lived, although as London-listed company Nikanor has just found out, the Congo remains very unpredictable.
Africa has, in the past, dealt some savage blows to Australian plans. And it has taken many years for the image of unreliability, corruption and political uncertainty to be assuaged.
The degree to which the climate has changed is no better exemplified than by Mineral Deposits and its Sabodala gold project in Senegal.
The company is moving steadily to develop and mine this deposit, with all the regulatory pieces falling into place.
Contrast that with the experience of Richard Fraser and Paget Mining.
In 1994, Paget signed a deal with the French owners to buy a 51% stake in Sabodala.
But before a new mining licence was issued, the French joined forces with Robert Champion de Crespigny's Normandy and their new company decided to keep Sabodala.
The fight went on for years and Fraser spent all his time in Dakar battling to get his claim recognised – meanwhile, a Senegalese company decided to start mining the deposit. Paget effectively went under.
Some other memories of what Africa used to be like: Delta Gold's shattered gold mine operation in Zimbabwe and Auridiam Consolidated closing its Ranch River diamond mine in that country, partly due to theft.
Cambrian Resources struggled for years to get a project going in Zimbabwe only to give up and walk away.
Ghana Gold Mines found the dream of that country soon faded, closed its Obenemase mine and abandoned exploration, as did the then Takoradi Gold.
The latter company's Gallamsays project in the Bole region of Ghana was plagued by illegal mining.
There is now the forgotten Panorama Resources. Apart from its Kenya gold projects, it ventured into the jungles of the Republic of Congo (that's the one centred on Brazzaville) and ended up with mothballing everything there.
Then there was Tony Trevisan's stable of Perth-based listed companies.
His Pioneer Resources (later Kwan Lee Holdings) was going to make its name on the huge Rotifunk deposit, but a civil war in Sierra Leone saw that off.
Another of his companies, Platgold Pacific, thought it was on to a gold winner in Namibia while another, Callina, briefly boasted on a copper project in Zambia.
Wheels can still fall off in Africa but less frequently. And sometimes those wheels can now be put back on again.
Smart money moving into this stock today larger parcels on buy side very small parcels on sell side.
Im a bit slow just found the source for todays interest in this stock.
Australian explorer to start mining Eritrea gold
Sun Jun 3, 2007 10:33AM EDT
ASMARA (Reuters) - Australian explorer Sub-Sahara Resources will begin mining operations in Eritrea after test drilling revealed 760,000 ounces of high grade gold, the company said on Sunday.
"Now our intent is to make this into a mine," Chief Executive Officer Michael Griffiths told Reuters in an interview. "Zara has high grade gold," he said, referring to one of two projects the company is running in the Red Sea state.
He said it might take "a few years" before mining began while permits, financing and shareholder approval were secured.
Industry players say a new gold rush is happening in Eritrea, where analysts forecast mining revenues covering nearly 40 percent of government expenditures -- once mining starts.
There is currently only one project, a gold and base metals mine run by Canada's Nevsun Resources Ltd, that is close to operation. It plans to start work in 2008.
Some investors remain suspicious of Eritrea after the Horn of Africa nation unexpectedly ordered a halt to foreign mining work in September 2004, saying it needed to review its mining laws.
The ban was lifted in April 2005 but Griffiths said the move had caused consternation.
"However, once you start releasing very good drill results, people's memories get shorter and shorter," he said. Eritrea waged a brutal 30-year independence struggle against neighboring Ethiopia and the outbreak of a two-year border war in 1998 wreaked havoc on its infrastructure.
Griffiths said the same deposits his company had found would have twice their value if they were unearthed in Australia.
"People would value a project in Australia to have less political risk and greater infrastructure potential," he said. "We probably need to find double what we would in a developed country."
For something to do on a day like today My valuation of SBS obviously not the markets....as yet
Keeping SBS holders informed. Old story but a bit deeper than asx announcement.
Anvil likes the look of Zara
By Michael Quinn, 30 April 2007
Zara in Eritrea … “we’ll see where Sub-Sahara can go with a bit of funding”.
HAVING proven itself more prescient and capable than most in the mining world with its highly profitable move into the Democratic Republic of Congo, copper miner Anvil Mining NL has made a second move to diversify its interests with its investment last week in Eritrean gold explorer Sub-Sahara Resources NL.
The Australian and Canadian-listed Anvil will invest $A7.2 million in Sub-Sahara for an 18% equity stake, with the junior’s Zara gold project the key attraction.
The Zara gold project in Eritrea covers an area of 196 square kilometres and is situated in northern Eritrea, about 160km north-west of the capital city, Asmara. There are a number of high-grade gold prospects within the project, with the Koka prospect being the most advanced. Mineralisation has been defined at Koka over a strike length of 500m (and remaining open), and an initial inferred resource estimate is currently being made.
Anvil chief executive officer Bill Turner told HighGrade the investment gave the company a “beachhead” in Eritrea in an interesting geological environment where further opportunities may arise. “It’s just a very interesting project (and) having a bit of gold in the portfolio is not a bad thing,” Turner said. “And who knows in Eritrea (what else will come up). It is a base metal and precious metal environment and we’ll see where Sub-Sahara can go with a bit of funding. We’re looking at other countries where we can grow the business. We do want to get in other parts of the world … we’ve been pretty single-point sensitive in terms of all our assets in Congo and the speed in which we’re growing in Congo leads you to feel that you need to diversify that political risk. Not to say that we think Congo is going to fall apart tomorrow, far from it, it is just an appropriate thing to do when you can.”
Anvil is keen to ensure metallurgical and other scoping work is undertaken at Zara during the next 12-18 months while drilling continues. Turner wasn’t going to nominate possible development scenarios given the early stage of the project, but when pushed he responded: “In a project like that, you’d want to be producing a minimum 100,000oz. It’s a part of the world where you haven’t got a mining industry so you have to walk before you run … make it a staged development like we’ve done in Congo. Ideas of going in there with a big bang and starting a big project … those sorts of things don’t usually go very far, particularly with a junior company. Junior companies need to bite off sizeable bites that can be digested and move forward in that manner. And, it’s all about profit margins and return on equity/return on investment. Some of this stuff is reasonably high grade, this is not 2gpt dirt, this is 6-7-gram dirt, so hopefully in an openpit configuration, this can be reasonably profitable … and at 100,000oz mining at that grade you should be okay.
“We like the geology, the grades, some of intersections are not too shabby. (It’s a) long way before it’s a mine but we think it’s a pretty interesting project that’s worth supporting.”
The Sub-Sahara investment follows Anvil’s decision in February to invest a minimum of $US4 million in gold properties covering just under 3000 hectares in the Baguio district on Luzon Island in the Philippines. Turner indicated the investments were potentially just the start both in those countries and elsewhere for the emerging 100,000 tonnes-per-annum DRC copper miner.
“We go into a place like Eritrea for the upside in the country. One small deal is not the end of the road (if we’re successful),” Turner said. “Like the Philippines, this is a beachhead.”
A big week for gold - Dryblower
Monday, 25 June 2007
LOOKING for the next best thing is the game all investors play and Dryblower thinks he's spotted it.
OK, so gold is not exactly new, but that's half the fun of the great investment game. It is perpetual. One minute it's base metals on top, then it's the bulks, then it's energy, and then it's the precious stuff such as gold, silver, platinum and diamonds.
Over the past year the market has had time only for that 'new' energy play, uranium, and the oldest and dullest of the bulks, iron ore.
Gold and diamonds haven't even got a look in, shunted out of the way by the fat margins available elsewhere.
Well, consider the evidence Dryblower gathered last week. Just as everybody was looking at the latest $1 billion capital raising for Fortescue's iron ore projects, and Murchison Metals was merging with Mitsubishi, life returned to part of the gold sector.
Five stocks stood out in the sudden flush of interest in gold. But, of even greater interest than a burst of gold-stock buying was the timing – it happened while the gold price was falling.
Now, readers may think Dryblower old-fashioned, out-of-touch, and desperate for something to talk about but when mining shares are rising by 30% and more in a week, and the price of their principal commodity is falling, something special is happening.
Before citing the numbers here's what seems to be driving the price of selected gold shares.
First, there is the remarkable effect on market sentiment of discovery, and we do seem to be having good luck in the field.
Second, there is the gathering of smart money led by smart management putting their combined efforts into gold.
Thirdly there is the 'it's time' factor which comes back to the rotating investment theory of iron ore and uranium running out of puff, and gold staging a comeback.
Now for the evidence.
Last week the gold price, as measured on the London Bullion Market, slipped a few cents lower. From the Friday-to-Friday close it went from US$653.10 an ounce to $US652.85/oz. Modest indeed.
But, in Australia, the fall was more substantial because the Aussie dollar kept rising (from US83.86c to US84.72c) – that produced a gold price fall from $US778.79/oz to $US770.59.
Still not much, but down nevertheless.
On the stockmarket, the price of gold mattered little as discovery and deal news dominated.
· Barra Resources shot up from 47c to 67c after spectacular assays from its Burbanks mine, a 42.5% gain as investors preferred the sight of 25.1m grading 31.8 grams a tonne over an $8.20 fall in the Aussie gold price.
· Andean Resources rose from 70.5c to $1, with a brief peak at $1.18, on the strength of assays from Argentina.
· Sleepy Alkane was reawakened with fresh results from Caloma drilling to deliver a 25% gain as it moved from 36c to 45c.
· Freshly floated Carbine added 5c in a move from 38c to 43c, and hit an all-time peak of 45c midweek thanks to drilling results from its Red Dam project.
· Apex Minerals ran hard early from 86c to $1.06, before sputtering out to close at 88c after announcing the purchase of Oxiana's Wiluna gold mines.
It isn't just Dryblower who's spotted the trend in those gold stock performances, and while other gold stocks did not do as well, it is impossible to ignore that interest in the gold sector is stirring.
Apex, with its bold plan to be the operator of difficult mines, is an example of the emerging forces in the next gold phase (better not call it a rush yet), and Monarch's vision of being a supplier of gold to wealthy Arabs is another.
But, above all else, and even with the gold price falling, there are two other factors under-pinning this revitalised interest in gold – investors' hunt for the next best thing, and the tremendous boost that comes from the most important factor of all, discovery.
Click here to read the rest of today's news stories.
Nevsun Resources CEO Speaks About His Company
Posted on Jun 25th, 2007 with stocks: NSU
On June 25, The Wall Street Transcript interviewed John A. Clarke, President, Chief Executive Officer and Director of Nevsun Resources Ltd. (NSU). Key excerpts follow:
TWST: We like to begin with a brief historical sketch of Nevsun Resources and a picture of the things that you are doing right now.
Mr. Clarke: Nevsun Resources is a gold mining company with a strong gold and base metal portfolio. Our operations are in Africa. We have a small mine, the Tabakoto Gold Mine, that we brought into operation last year in Mali. Tabakoto is a 70,000 or 80,000 ounce a year producer. But the biggest asset in the portfolio and the biggest driver for taking this company forward is the Bisha discovery in Eritrea. Bisha will start as a gold mine for the first two years, producing about 450,000 ounces a year and then it becomes a long-term copper and zinc producer. The Bisha project has a very quick payback at today's metal prices - it is our job to make sure it makes this company.
TWST: What is your plan for Eritrea?
Mr. Clarke: Our plan for Eritrea is to take the Bisha project into production. The mine will produce 450,000 ounces a year at US$150 per ounce for its first two years of production, and then it will be producing copper and zinc. At current metal prices, we expect approximately $200 million in free cash per year after tax and royalties for the project.
TWST: What about the political situation in Eritrea?
Mr. Clarke: That's a very interesting question, because we get strong support from the government there. They are trying hard to sort out our mining license. We have a drag on our company share price at the moment. With such a strong asset, why should we have a drag? It is because we are waiting for the issuing of a mining license. We were expecting to get it a couple of months ago, but the government is sorting out its own issues of capacity and very necessary bureaucracy. I am saying bureaucracy in a very positive sense there. Everybody takes a part in the decision. It is a very important decision and has to be done properly. As far as politics is concerned, Eritrea is quite a nice country to do business in. It is underexplored because of its colonial past. The government is concentrating on building the nation as well as putting in infrastructure and housing. I have never seen a third world country as intent on using its funds for road building, power and water to the villages around the major cities and building houses for people. It is what the government should be involved in, but we rarely see that. So it is actually a comfortable place to do business, but it is not the image that you would hear in every newspaper report of Eritrea. It is a small country on the Horn of Africa. It is a very peaceful, comfortable place to do work.
TWST: Would you sketch out your timetable as you look out over the next two to three years?
Mr. Clarke: In Mali, I am pretty optimistic about where gold prices are going to go. I think gold prices will help us a lot in Mali. The really good news is Eritrea. As soon as we get our mining license, we will be able to organize financing for the building of the Bisha project in Eritrea. It is a $200 million project with a payback at the current gold price of the order of 1.3 or 1.4. It will take us about two years to build the Bisha Mine. We are already well ahead with the planning for starting the engineering design. We've also had all the necessary discussions with our long lead item suppliers -the mills, the mill motors and the crushers. With financing in place we could push those ahead faster, which would take us into production mid-2009.
TWST: What would be the two or three best reasons for the long-term investor to look very closely at Nevsun Resources?
Mr. Clarke: We are undervalued because we are in a bit of a waiting game. The wait isn't going to take much longer. So we have a short-term gain from getting the mining license, re-asserting our current share price and going out for Bisha mine construction financing. A successful financing will provide a second lift to our share price. Our shareholders after that will benefit from any positive movements in metal prices in general. We are well positioned with a very strong project. Gold production at Bisha will pay for the initial capital for the project and the copper and zinc will provide cash flow and growth going forward.
NSU 1-yr chart
Update for SBS holders. If the results of hole 42 are any indication the next 11 holes in progress should be very positive for the stock. Also keep an eye on Nevsun Resources, share price has been running up lately in anticipation of it receiving its mining liceince this month. SBS Chart looks good. DYOR
Keeping all informed.
Eritrea: Mining Picture Remains Cloudy
By Nathan Becker
18 Jul 2007
St. LOUIS (ResourceInvestor.com)
-- A tiny African country is giving some miners a big headache.
Eritrea, a war-torn nation on the Red Sea in northeastern Africa, is about the size of Tennessee. It’s also believed to be very rich in minerals. Yet no one in modern times has mined the country, and only a few hope they can.
MDN [TSX:MDN], formerly Northern Mining Explorations, was one of those few before it decided to withdraw from Eritrea on July 11, after waiting since 2003 for an exploration permit for its Haykota property.
Richard Corbo, adviser to the CEO of MDN, told Resource Investor that the Eritrean government never said MDN couldn’t have a permit - just that the company had to wait. Eritrea never gave MDN a reason for the permit being put on hold.
“We’d love to know why,” Corbo said. “We can only suspect that they’ve not been allowing permits to anybody since the beginning of the year.”
Corbo said Eritrea’s border conflict, ongoing since a two-year war with neighbouring Ethiopia from 1998 to 2000 in which 13,000 Eritreans died, could indirectly be the cause of permit scarcity.
“The fact is that … unfortunately, [Eritrea] owes a lot of money to the Chinese for arms. We’re talking here, billions of dollars of arms that they bought from the Chinese, and most probably they will have to face payback time. They’re probably looking to offer properties and license or mining rights or whatever to the Chinese.”
He said MDN doesn’t think the idea will float.
“We don’t think the Chinese, whatever power or influence they have out there, will accept potential mining operations in which you invest and have to do everything from scratch. [China would say], ‘You’re trying to pay me with something that doesn’t exist, or it’s only potential.’
MDN drilled on the Haykota property in June 2006 on two targets. One hole returned 13 metres of 2.34 g/t Au at depths of 6 to 19 metres, including 3 metres of 3.52 g/t Au from 8 to 11 metres. Another hole returned 7 metres of 3.08 g/t Au at depths of 2 to 9 metres, including 2 metres of 9.03 g/t Au from 5 to 6 metres.
Since MDN’s withdrawal, only three foreign miners remain with projects in the country: Nevsun Resources [TSX:NSU; AMEX:NSU], Sunridge Gold Corp. [TSXv:SGC] and Sanu Resources [TSXv:SNU].
Corbo said MDN eventually decided to quit waiting on Eritrea after the company hadn’t seen any progress in nearly four years. Talks never made any headway, he said.
“We’ve been dealing with the minister of mines, and … discussions have always been very positive. They keep on saying to us, ‘Just be patient,’ and they never came through. The bottom line is that we simply cannot trust what’s going on up there.”
Alex Gorbansky, managing director of the Frontier Strategy Group, said Eritrea is a risky place for any miner.
“Eritrea is at the high end of the risk curve for the mining industry given unclear regulations, an authoritarian regime and the ongoing conflict with Ethiopia. Security is another major concern for Westerns ... The current risks in Eritrea and the dynamic situation on the ground make it off-limits to virtually all firms but those with the highest risk tolerance.”
But Nevsun is still optimistic that it will eventually be able to mine its Bisha project, the largest and most-advanced of any mining project in Eritrea. The company is waiting on a mining license for Bisha, but it has already received an exploration license.
The Bisha deposit hosts 1.06 million ounces of gold, 747 million pounds of copper, 1.09 billion pounds of zinc and 10 million ounces of silver. The mine will produce an average of 447,000 ounces of gold per year in the first two years, 173 million pounds of copper per year in years 3 to 5 and 218 million pounds of zinc plus 39 million pounds of copper per year in years 6 to 10.
Nevsun estimates a capital cost of $196 million with expansion costs at $61 million + $31 million in two phases, funded from operations. Operating costs are forecast to be $31.64/tonne ore milled through the 10+ years life of mine. Using recent metal prices of $650/oz gold, $3.00/lb copper, $1.50/lb zinc and $13/oz silver, the company calculates a capital cost payback period of just 1.2 years.
“Nevsun is currently in active discussion with the government of Eritrea regarding our application for a mining license for the Bisha Project,” Nevsun CEO John Clarke told RI.
Nevsun has extensively explored Bisha and has presented Eritrea with a feasibility study as well as a social and environmental impact assessment, Clarke said.
“Throughout our time in Eritrea, we have continued to receive strong support from all the relevant government ministries and we are confident that the Bisha mining license will be awarded,” he said.
Nevsun isn’t without its share of problems with the Eritrean government, however. In September of 2004, after the company had finished up a 195-hole, 30,000-metre drill program that produced encouraging results, the Eritrean Minister of Energy and Mines ordered a halt to all mining and exploration activities.
The government gave no reason for the policy change, but there’s word within this Casey report that a high-ranking Eritrean official confirmed off the record that it was because the government figured out just how big the deposit was, and it wanted a bigger cut.
The ban was lifted in February 2005 after the government reviewed the laws and raised its maximum-available equity interest in Bisha and other properties from 20% to 30%.
Corbo said companies currently in Eritrea are just looking to stay positive, and he said he thinks the country, which gained its independence from Ethiopia in 1993, is leading those companies on.
“[Eritrea is] not saying, ‘No.’ They’re not shutting the door, they’re not putting them out,” Corbo said. “[The companies trying to mine Eritrea] have been quite creative to announce nothing by staying positive. No permits have been allowed.”
MDN is currently looking to sell its 75% equity stake in the Eritrean Minerals Corporation, Corbo said.
“We’re looking to sell, if there’s anything to sell,” he said. “There are a couple of deals that we’re looking at, and some approaching has been done, but as we speak, nothing concrete.”
With Eritrea out of the way, MDN looks to return its focus to its properties in Quebec and Tanzania, which have shown positive results lately. The ongoing results coming out of the Tulowaka mine are encouraging, Corbo said, and MDN is looking to add years to the mine’s life as well as revise its resource estimates.
“Things are going better than expected with our other assets,” Corbo said. “We’re debt-free, cash-flow positive in 2008. We’re in great shape.”
The Eritrean Haykota project currently has no value, which made MDN’s withdrawal timing appropriate, Corbo said.
The country’s mineralization is so appealing, including gold, copper, zinc and silver, that it caused MDN to keep its interest in Eritrea maybe longer than it should have, Corbo said.
“The only reason why we took so much time is because we have to recognize it’s a great place to be, to explore, and there’s no doubt of the overall potential,” he said. “The geology there is just great.”
So great that, even though Corbo said MDN “can’t trust the overall situation” in Eritrea, company officials couldn’t rule out rethinking its withdrawal from the country if things end up looking on the up-and-up.
“We’ll keep our ears open,” he said.
Posted to the web on 16 Jul 2007 at 06:18 PM GMT-04:00
The good with the bad.
Becker of Resource Investor.com had filed a report captioned “Eritrean Mining
Picture Remains Cloudy as MDN Backs Out” dated on 16 July 2007. This report has
many factual errors that need to be brought to the attention of all the readers
and interested parties.
has to be recognised that a credible reporter should
have done his homework in order to ensure that his facts are correct. If
necessary he should have consulted the Ministry of Energy and Mines for
additional clarifications and balanced reporting.
that MDN was not the source of this disinformation as has been stated in their
press release and their comments in the present article.
that we would like to set the record straight by giving the actual facts:
1. MDN did
apply for the Haykota license and waited for a long
time. This is simply because the Ministry was in the process of assessing the
work programme accomplished by the different
exploration companies on the license areas that they were still holding. After
a while the Ministry had come to the conclusion that the companies needed to
invest more in their existing areas before they acquire additional licenses.
Consequently the Minister of Energy and Mines gave a written reply to MDN that
its application for an exploration licence will not
be granted and was advised to stick to its current license i.e
the Harab Suit area. It has also to be noted that
granting and/or refusing of a license application is the prerogative of the
Ministry of Energy and Mines.
Becker's statement that MDN had drilled holes in the Haykota
area is totally unfounded. It has to be understood that no company is allowed
to drill or explore without a proper permit / license.
implication to give exploration licenses for Chinese companies in exchange for
arms is a totally unfounded and outrageous speculation. It is a simple logic
that no company whether it is Chinese or Western will make such kind of deals,
which is worth “billions of dollars of arms….” in an area that could be
potential but is hardly explored. We find this speculative statement
underestimates the Chinese judgment and certainly it is not the policy of the
Eritrean Government to make such kind of deals in the minerals sector.
4. Alex class=SpellE>Gorbansky was quoted to have said that “ w:st="on">Eritrea is a
risky place for any miner…”. As an analyst Mr. class=SpellE>Gorbansky is entitled to his opinion, however we would like
to make it clear that there are considerable number of Canadian, Australian,
Chinese and other companies are very keen to be granted a license. This is
hardly a sign of a high risk place to go.
We would like
to send a clear message to the existing exploration companies in w:st="on">Eritrea as well
as new incoming companies and Mr. Becker that despite the hiccups like the
temporary stoppage of exploration activities during September 2004, the policy
of the Ministry in the mineral sector is based on a transparent and solid
contrary to the speculation of Mr. Becker, w:st="on">Eritrea still remains a bright area
for mineral exploration and we are committed to reward all investors in the
Department of Mines
Ministry of Energy and Mines
P.O. Box 272 , Asmara , Eritrea
Tel: 002911-202889; Fax: 002911-124509
SBS hold 7.6M shares in Sunridge Gold. Approx 15% of issued capital.
Lundin Mining holds Approx 19% of Sunridge Gold issued capital. Lundin mining has a Market Cap of over $4 billion
Sunridge Gold Corp.
TSX VENTURE: SGC
Jul 19, 2007 08:01 ET
Sunridge Gold Announces Technical Services Agreements for Asmara Project, Eritrea
VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 19, 2007) - Sunridge Gold Corp. (TSX VENTURE:SGC) is pleased to announce that it signed technical service agreements with Lundin Mining Corp. ("Lundin Mining") and MSA Geoservices ("MSA") for ongoing resources estimations and engineering work on the Emba Derho, Debarwa, Adi Nefas and Gupo deposits on the 100% owned Asmara Project, Eritrea.
The agreement with Lundin Mining allows for Sunridge to utilize the services of several key individuals who are specialists in such areas as resource estimates, mining engineering, metallurgy and environmental work. In particular, these specialists will be involved in the advancement of Sunridge's large, newly discovered Emba Derho zinc/copper/gold deposit as well as the 3 other deposits on the Asmara Project.
Under the agreement with Sunridge, MSA Geoservices will provide independent geological consulting services to produce a NI 43-101 compliant resource estimate for Emba Derho as well as updating the resource statements for Debarwa and Adi Nefas (Sunridge announced an independent inferred resource estimation on January 29, 2007 for the Debarwa and Adi Nefas deposits). It is planned to have this work completed by the end of September 2007.
MSA is based in Johannesburg, South Africa and is Africa's largest geological contracting and consulting company with over 150 employees. MSA's client base includes some of the largest multinational mining companies and over the past 5 years has been involved in over 100 mineral exploration projects worldwide.
Michael Hopley, President and CEO of Sunridge said; "The agreements with Lundin Mining and MSA give Sunridge a world-class team of professionals which will allow us to rapidly advance Emba Derho, Debarwa and Adi Nefas deposits towards production."
In addition, Sunridge also continues an aggressive property-wide exploration program in the search for additional base metal and gold deposits such as the four deposits that have been discovered to date on the Asmara Project. Three drills are currently testing a number of geophysical/geological targets on the Asmara Project and a fourth drill is expected to commence work by mid-July.
Lundin Mining is Sunridge's largest shareholder owning approximately 19% of the outstanding shares of the company. Dr. Neil O'Brien, Senior Vice President of Exploration and Business Development for Lundin Mining, has been appointed to the Sunridge Gold Board of Directors, replacing Mr. Karl-Axel Waplan who has resigned from the Board. Dr. O'Brien has extensive expertise in early to advanced stage exploration for zinc, copper and gold which will contribute significantly to the further development of Sunridge's Asmara Project in Eritrea. Sunridge Gold would like to thank Mr. Waplan for his contributions to the Sunridge Board.
Sunridge Gold Corp. is a mineral exploration company focused on the acquisition, exploration, discovery and development of precious and base metal projects. The Company has 51.6 million shares outstanding and trades on the TSX Venture Exchange under the symbol SGC. For additional information on the Company and its projects please view the slide show on our website at www.sunridgegold.com or call Don Halliday at the number listed below.
SUNRIDGE GOLD CORP.
Michael Hopley, President and Chief Executive Officer
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
For more information, please contact
Sunridge Gold Corp.
SBS having a bit of a run last few days,with no announcement. Buy side has filled up,but it's going to take some volume to close above that .115 cent resistance which has been in place since January 06. Looking forward to Quartly update/drill results.
S..t i hope Anvil not making a bid for this yet somethings going on, Might be just buyer jumping in under resistance
Looks like we will have to wait for another day fos SBS to break the .115 cent resistance, all in all it was an exciting day today with more to come.