New gold projects and Cue Diamond project update

RNS Number : 0742K

Sunrise Resources Plc

25 July 2013

 



("Sunrise" or the "Company")                                 25 July 2013

NEW GOLD PROJECTS & CUE DIAMOND PROJECT UPDATE

Sunrise Resources plc, the AIM-traded diversified mineral exploration and development specialist, is pleased to advise that it has applied for licences over two gold prospective areas near Meekatharra in the Murchison Mining District of central Western Australia. It has also collected a 200kg sample of kimberlite from Target 5 at the Cue Diamond Project.

New Gold Projects

·     "Corona" and "Baker's" - are located 80-100km northeast of the town of Cue and 150km east of the Company's Cue Diamond Project.

·     The host Meekatharra Greenstone Belt has yielded over 5.5 million ounces of gold and contains a number of producing gold mines including the Andy Well high grade gold deposit being developed by Doray Minerals Ltd.

·     Project licence applications are strategically located in active exploration areas that are yielding significant gold and base metal discoveries.

Cue Diamond Project

·     200kg sample of Target 5 kimberlite at Cue Project collected for diamond grade evaluation.

A map showing the location of the Company's Corona & Baker's project licence areas, and the various third party exploration and mining areas referred to in this announcement, will shortly be available on the Company's recently redesigned website: www.sunriseresourcesplc.com

A preliminary field inspection has been made at the Corona mine workings and various photos will also be available on the Corona Project page of the website.

Commenting today, Executive Chairman Patrick Cheetham said: "I am pleased to be announcing two new gold projects and further work on Target 5 at the Cue diamond project. The new licence applications are consistent with our policy to generate new opportunities having geographical or commodity synergy with our existing projects, at a low cost."

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 Dominic Barretto/Anna Legge	Tel:	[phone]

Detailed Information

Baker's Gold Project

The Baker's Project is located 25km south-east of the town of Meekatharra and close to the Meekatharra-Sandstone road. It comprises 10 contiguous Prospecting Licence applications (P51/2836-2845) covering an area of approximately 18 sq. km. on the eastern limb of the Meekatharra Greenstone Belt.

Generally, the eastern limb of the Meekatharra Belt has not seen the same density of exploration as other parts of the belt.

Within the licence application area, the Baker's gold prospect produced a small quantity of gold from small scale workings between 1980-84. The licence has seen various rounds of historical exploration including separate programmes of wide spaced percussion drilling. This generated a number of anomalies that Sunrise plans to follow up including gold mineralisation in historic drill hole DLR 04 completed by Australian Consolidated Minerals in 1987 which averaged 0.55g/t gold (Au) over the 22m interval from 2m down hole depth to the end of hole at 24m and where the final 2m sample (from 22-24m depth) assayed 1.17g/t Au. No follow up drilling was carried out.

The project area is strategically located covering a 4.5km strike length of highly prospective ground in the centre of Doray Minerals Ltd's Meeka East project and to the south of Doray's Side Well gold project where Doray recently announced significant drill results.

Corona Gold Project

The Corona Project is located 26km to the south of Baker's and comprises an exploration licence application (E51/1586) covering 84 sq. km.

The licence area is located immediately north of the Quinn's Mining Centre, a significant gold producing centre and the focus of recent base metal discoveries.

The project takes its name from the historic Corona Gold Mining Lease where a high grade gold reef was mined in the period 1910-1911 producing 159 tonnes of ore having a recovered grade of 17 g/t Au.

The Corona licence application area is also located within the Meekatharra Greenstone Belt but has undergone limited exploration as historical mapping of the area misclassified much of the licence area as unprospective granite. Recent mapping demonstrates that the area is underlain by more prospective greenstone.

Historical exploration in the licence area has been carried out by two companies - Homestake (1986) and Gold Mines of Australia (WA) NL ("GMA":1995-6).

Homestake was first attracted to the area on the basis of very high grade reconnaissance samples taken from the Corona Mine area which returned values up to 28g/t Au. Homestake carried out wide spaced geochemical drilling along a structure believed to be associated with the high grade reef, collecting only base-of-hole geochemical samples. This defined a northeast trending gold anomalous zone coincident with the main Corona workings which was open to the northeast, but not followed up.

Subsequently GMA carried out wide spaced soil sampling and rock chip sampling at Corona that confirmed the high gold values but no drilling or follow up work was carried out in the Corona area.

The Company believes that the high grade gold reef at Corona presents an immediate drill target with potential for the discovery of Andy Well style high grade gold mineralisation.

A brief reconnaissance visit has recently been made to the project area and a number of reconnaissance samples collected.

Cue Diamond Project

In a news release of 25 March the Company announced positive diamond sampling results from a 46kg sample of kimberlite ¹float from Target 5 at the Cue Diamond Project in Western Australia.

A follow up field programme has just been completed with the objective to narrow down the area for testing for the bedrock source of the kimberlite float. This comprised geological mapping, soil and kimberlite float sampling. The area of kimberlite float identified by this mapping extends further than the Company's initial reconnaissance suggested. Soil sample results have yet to be evaluated.

A 200kg sample of the kimberlite float was collected and will be submitted for diamond extraction and analysis. The results will be submitted for grade modelling if appropriate. If grade modelling is possible, and confirms the promise of the small sample results, then a follow up programme of drilling and trenching will be undertaken to locate the bedrock source.

This is considered by the Company to be the most cost effective approach to continue evaluation of this target area.

Note:

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.

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 now acquired two gold exploration projects in Western Australia.

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

 

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