While the GDX managed a fractional gain, one of the top performing gold stocks was Sunridge Gold (SGC.TSXV), which surged as much as 8.0% to C$1.22 after announcing assay results at the high-grade copper-gold-zinc Debarwa VMS (volcanogenic massive sulphide) deposit at the company’s Asmara Project in Eritrea. The results came from the first four of 35 diamond drill holes completed as part of a detailed definition drilling program at Debarwa, and were highlighted by the intersection of 4.0 grams per tonne (g/t) gold and 13.14% copper over 22.0 meters.
Sunridge Gold went on to report that drill holes DEBD-126 and 127 were drilled to evaluate the continuity of the deeper primary mineralization at Debarwa, with DEBD-126 demonstrating continuity of the copper mineralization in particular at depth. Drill holes DEBD-128 and DEBD-129 intercepted the shallow, high-grade copper-enriched supergene zone, indicating copper grades of more than 20% in some intervals. This provided “further confidence in the continuity of this very high grade copper zone for the ongoing feasibility study.”
The Canadian-based gold company also noted that the results of recent drilling will be incorporated into a new resource estimate for Debarwa, which is scheduled for completion in March 2011. Samples taken from this drilling will also be for metallurgical studies forming a portion of the ongoing feasibility study that began in November 2010.
Consistent with today’s outperformance of the GDX, shares of Sunridge Gold have posted gains far surpassing that of the gold stocks ETF over the past year. Over the last 52 weeks, SGC.TSXV has soared 190.5%, compared to an 18.1% gain for the GDX. Sunridge has provided investors with substantial leverage to the price of gold and today’s assay results are the latest in a series of significant drill results announced over the past few years.
Other notable gold stocks posting gains Wednesday included GDX components Agnico-Eagle Mines (AEM), Goldcorp (GG), and Kinross Gold (KGC). AEM, GG, and KGC advanced 0.2%, 0.4%, and 0.5%, respectively.