Exploration Update
21 March 2011
Project Exploration Update
Sunrise Resources plc ("Sunrise" or "the Company"), the AIM-quoted diversified mineral exploration and development specialist, is pleased to provide the following project updates.
Long Lake Gold Project, Ontario, Canada
The results of a preliminary drilling programme and subsequent geophysical exploration on the Long Lake Gold Project were released in January and February this year. Since then the Company's consultants have been carrying out further processing of the geophysical data in order to optimise targeting of new drill holes for a programme of follow-up drilling.
The follow-up drill programme will continue to seek down-dip and along-strike extensions to the gold mineralisation mined in the period prior to mine closure in 1939 and will also test specific geophysical anomalies in the same general area. Further drilling is also planned to re-test Anomaly 23 where a down-hole and surface IP survey around the Company's drill hole 10LD006 suggested that this hole missed the target which is strong and indicative of massive sulphide mineralisation. The Company is aiming to start drilling in April and a more detailed announcement will be made when drilling is due to start.
Following the Spring thaw, work is also planned to continue evaluation of the nickel-copper -platinum group metal (PGM) potential of the claim block which covers projected extensions to the Copper Cliff dyke system which, to the north of the Company's claim block, has produced over 200million tonnes of nickel-copper-PGE ore. The claim block contains a number of untested geophysical anomalies defined by a previous explorer.
Derryginagh Barite Project, Co. Cork, Ireland
Trenching Programme
The Company has now successfully completed a programme of exploratory trenching at Derryginagh. The programme had two objectives - to test for extensions to the previously mined east-west striking barite vein at Derryginagh and to collect a bulk sample for more definitive metallurgical testwork. Extensions to the vein system, particularly to the east of the mine, and the potential for parallel veins were inferred from the results of a gravity survey carried out by the Company in 2010.
Three trenches explored for the priority eastern extension of the main barite vein. The vein was previously mined from underground over a strike length of approximately 110m. In the first trench, located some 60m beyond the eastern end of the old working, a large sample of barite vein material (approximately 1.2 tonnes weight) was recovered. High groundwater inflow and unstable overburden prevented an examination of the bedrock in the trench but the recovered barite vein material is believed to represent in-situ bedrock and the barite appears to be very high grade.
A second trench some 82m further to the east along strike failed to reach bedrock due to deep overburden (glacial boulder clay) whilst a further trench located 430m east of the old workings did not expose the barite vein in-situ but a boulder of high grade barite was located in the overburden suggesting the barite vein may be located close by and extend over a significant strike length away from the old workings.
A number of other trenches were completed to test for parallel veins but, generally the overburden was too thick to allow reliable bedrock exposures. Nevertheless boulders of high grade barite were found in the overburden and at surface at a number of localities supporting the potential for the parallel barite veins suggested by the gravity survey.
Metallurgical Testwork
Whilst trenching was hampered by deep overburden and high surface water flows, the objective to recover a bulk sample for detailed metallurgical testwork and process design was achieved.
The 1.2 tonne sample referred to above has been sent to SGS Mineral Services UK Limited in Cornwall where the testwork will be carried out.
Concept Study
An independent desktop "Concept" Study has been commissioned with consulting group Saint Barbara LLP to evaluate the financial viability of mining and processing high grade vein barite at Derryginagh for sale as a white industrial filler. This desktop study will not have the accuracy of, for example, a scoping study or a preliminary economic evaluation and no resource or reserve estimate has yet been made for the project. Consequently the results of this study will not be sufficiently reliable for release to the market but will assist the Board in making a decision on the commitment of further resources to the project for drilling, resource estimation and feasibility studies. It will also provide a financial model that can be updated as exploration proceeds and further information becomes available.
Cue Diamond Project, Cue, Western Australia
Following the recent grant of the licence a field reconnaissance visit is being made to the claim area this week to assist the detailed planning of further exploration which will require
the usual Aboriginal heritage surveys. Further drilling is being planned for the end of the second quarter of the year, subject to the successful completion of the heritage surveys and drill rig availability.
The objectives of the first drill programme will be to obtain samples from the known kimberlites, to evaluate their diamond content/characteristics, and to test additional kimberlite targets at Fennels Well and Soapy Well.
Other projects
No work is currently in progress or currently planned at other projects held by the Company.
Further information:
Sunrise Resources plc Tel: +44 (0)845 868 4590
Patrick Cheetham, Executive Chairman Mob. +44 (0)7767 458751
Northland Capital Partners Limited Tel: +44 (0)20 7492 4750
Gavin Burnell/Rod Venables (Nominated Adviser)
Charles Vaughan (Broking)
Yellow Jersey PR Tel: +44 (0)20 8980 3545
Dominic Barretto
Notes:
The information in this release has been compiled and reviewed by Mr. Patrick Cheetham (MIMMM, MAusIMM) who is a qualified person for the purposes of the AIM Note for Mining and Oil & Gas Companies dated June 2009. Mr Cheetham is a Member of the Institute of Materials, Minerals & Mining and also a member of the Australasian Institute of Mining & Metallurgy.
Please note that any reference to dates or timetables for exploration programmes and the receipt of results are based on the Company's expectations held at the date of this release. Such timetables often depend on outside contractors, weather conditions and permitting issues beyond the Company's control and are therefore subject to change.
Notes to Editors
About Sunrise Resources plc
Sunrise Resources plc was formed to acquire the diamond exploration interests of Tertiary Minerals plc in 2005. Since then, the Company has made a number of new kimberlite discoveries in Finland and expanded its portfolio of diamond exploration interests to include a new project near Cue in Western Australia. The Cue Diamond Project is targeting a number of diamondiferous kimberlite dykes and kimberlite targets discovered by De Beers just prior to their termination of all Australian exploration projects.
In 2009 the Company made a strategic decision to diversify its project interests and has since acquired interests in the Long Lake Project as well as the Derryginagh Barite mine in south-west Ireland.
Derryginagh was worked for barite from 1864-1922, supplying white barite to the local paint industry. Barite, the mineral form of the chemical barium sulphate, is used as high-value industrial filler in, for example, paint, plastics, brake linings and acoustic panels. The Company is targeting a modest scale mining operating at Derryginagh that could, in time, produce a valuable cash flow for the Company.
In May 2010, the Company secured an option agreement for the Long Lake Gold-Nickel-Copper-PGM project 20km south-west of the City of Sudbury, Ontario (Canada). The Long Lake Gold Mine produced 57,000 ounces of gold from over 200,000 tonnes of ore mined in the periods 1910-1916 and 1932-1939 and has considerable untested gold potential. The claims also cover potential extensions to the currently producing Copper Cliff dyke system at the heart of the World's most productive nickel-copper mining complex.
Various maps and images illustrating some of the features discussed in this release are available on the Company's website at:
http://www.sunriseresourcesplc.com
This information is provided by RNS