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by Stockwatch Business Reporter

New York spot gold closed down $14.20 to $1,089.40 on Friday. The TSX Venture Exchange fell 5.30 points to 534.28 while the TSX Gold Index slipped 4.03 points to 121.80. Canadian gold miners fell back today. Yamana Gold Inc. (YRI) dropped 15 cents to $2.40 on 7.65 million shares, while Agnico Eagle Mines Ltd. (AEM) slumped $1.31 to $33.45 on 1.70 million shares.

Gold miners are in a consolidating mood. Craig Angus and Michael Hopley's Sunridge Gold Corp. (SGC), up seven cents to 24 cents on 11.18 million shares, is selling its 60-per-cent interest in the Asmara gold project in Eritrea for $65-million (U.S.) to -- inhale deeply here -- Sichuan Road and Bridge Mining Investment Development Corp. (SRBM). SRBM will also reimburse Sunridge the $13.33-million (U.S.) owed to it by Eritrean National Mining Corp.

Mr. Hopley, Sunridge's president and chief executive officer, said the offer represents a significant premium to the market, adding that the challenging market conditions make it attractive. Its attractiveness depends upon one's viewpoint. Sunridge acquired Asmara for a modest amount of exploration expenditures, initially less than $1-million, through a 2003 option deal with Sub-Sahara Resources NL. At last report, Sunridge was carrying Asmara on its books for just $24-million, but a revised feasibility study, completed in early 2014, put the discounted net present value of Asmara at $428-million after taxes.

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