Further Positive Diamond Results

RNS Number : 1869P

Sunrise Resources Plc

30 September 2013

 



                                                                                                                     30 September 2013

CUE DIAMOND PROJECT

FURTHER POSITIVE DIAMOND RESULTS FROM TARGET 5 KIMBERLITE

Sunrise Resources plc, the AIM-traded diversified mineral exploration and development specialist, is pleased to announce further positive diamond results from a second, larger sample of the recently discovered kimberlite ¹float at Target 5 on its wholly owned Cue diamond project in Western Australia.

Key Points:

·     204 kg sample returns high diamond count of 1.08 per kg.

·     221 diamonds recovered - 99% white/colourless or off-white and 98% transparent or translucent.

·     Size distribution modelling suggests commercial sized stones likely to be found in bulk samples.

·     Evaluation of economic potential is warranted.

The results being released today are from a 204.4kg sample collected in June 2013 when mapping increased the extent of the kimberlite float occurrence at Target 5.

Further work is now required to locate the source of the kimberlite float which is believed to be very local, due to the high concentration of kimberlite float at the surface.

Commenting today, Executive Chairman Patrick Cheetham said: "This is a positive result and is, I believe, one of the best diamond sampling results reported from the Yilgarn Craton in Western Australia. Results from this second larger sample substantiate our expectation that this larger sample would yield larger stones than were recovered from the initial 46kg sample. Diamond size distribution modelling for these new results indicate a higher economic potential for Target 5 compared to the previously tested Cue 1 kimberlite. The grade potential is higher and the extent of surface float suggests it could be larger."

Further information:

Sunrise Resources plc Patrick Cheetham, Executive Chairman	Tel:	[phone]
Northland Capital Partners Limited Gavin Burnell/Edward Hutton Alice Lane/Mark Simpson (Broking)	Tel:	[phone]
Yellow Jersey PR Limited	Tel:	[phone]
Dominic Barretto/Kelsey Traynor

Detailed Information

The Cue region, in Western Australia, was explored for diamonds by De Beers in the period 1994-2001 during which time De Beers discovered kimberlite dykes in two separate areas within the Company's licence area, at Cue 1 and Soapy Bore. Kimberlites in both areas were reported as diamondiferous by De Beers.

To date, Sunrise Resources plc has drill tested only the Cue 1 kimberlite, but has located kimberlite float in three additional areas within its property, the most extensive of which is at Target 5.

In March this year the Company announced that a 46kg sample from Target 5 float returned a total of 59 diamonds and size distribution modelling suggested larger stones would be found in a larger sample.

In June this year mapping of the Target 5 kimberlite float extended its footprint and a larger 204kg sample was collected. This sample was processed by caustic fusion at Saskatchewan Research Council Geoanalytical Laboratories Diamond Services ("SRC") which is accredited to ISO/IEC 17025:2005. The results of diamond picking by SRC from various square sieve sizes are presented in the following table:

Sample Weight	No. of Diamonds	Numbers of Diamonds According to Sieve Size Fraction (mm)						Total No. Per Kg
		+0.075	+0.106	+0.150	+0.212	+0.300	+0.425
Kg		-0.106	-0.150	-0.212	-0.300	-0.425	-0.600
204.44	221	83	77	34	22	2	3	1.08

From a total of 204.44kg of kimberlite float, 221 diamonds were recovered having a total weight of 1,302,000 octocarats (10^-8 carats). Of these, 65% were white and 34% were off-white, 88% were transparent and 96% showed no inclusions or only minor inclusions and 47% were fragments. These statistics are very similar to those reported for the first 46kg sample of Target 5 kimberlite.

The three largest diamonds recovered from the latest sample had the following dimensions: 0.84x0.46x0.36mm, 0.70x0.48x0.44mm and 0.64x0.44x0.32mm. These stones are larger than any of the stones recovered from the initial 46kg sample from Target 5 (see Note 2).

In order to properly evaluate the diamond grade and diamond quality of any kimberlite, collection of bulk samples is required as the probability of finding commercial size stones (greater than 0.85mm) increases as larger amounts of kimberlite are sampled. However, in the early stages of exploration when relatively small samples are taken, the size distribution of the more common smaller diamonds can be used as a guide to the probability of the occurrence of commercial sized diamonds.

Modelling of the stone size distributions for latest sample from Target 5 suggests that commercial sized diamonds are likely to be found in bulk samples of the kimberlite and the further economic evaluation of the kimberlite is warranted.

The Company is now planning a programme of further exploration (trenching and/or drilling) to locate the bedrock source of the kimberlite float at Target 5. This programme was deferred in June in favour of collection of the larger float sample being reported today.

The high concentration of the kimberlite float at surface and its geomorphological setting suggest that the kimberlite source is local, if not directly below the float. The target area falls within an area where Aboriginal Heritage clearance has already been obtained.

Notes:

1. "Float" refers to rock now occurring on the current land surface which has broken from the original in-situ source body by natural weathering processes.

2. The three largest stone being reported in this announcement would historically have been classified as "macro diamonds" - most commonly defined as a diamond with a size greater than 0.5mm and a weight of greater than 0.001 carats. Use of the terms "microdiamonds" and "macro diamonds" is no longer encouraged as diamonds tend to occur in a deposit in a continuum of sizes with larger stones being much less common than smaller stones. Consequently larger stones have a higher probability of occurrence in larger samples.

3. 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.

About Sunrise Resources plc

Sunrise Resources plc is a diversified mineral exploration and development specialist.

The Company is evaluating a production opportunity for white barite in South-West Ireland, has diamond exploration interests in Western Australia and Finland and has recently applied for two gold exploration projects in Western Australia.

Shares in the Company trade on AIM. EPIC: "SRES"   www.sunriseresourcesplc.com

 

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