Positive Diamond Results

RNS Number : 7240A

Sunrise Resources Plc

25 March 2013

 



25 March 2013

SUNRISE RESOURCES PLC

("Sunrise" or the "Company")

CUE DIAMOND PROJECT

TARGET 5 KIMBERLITE SAMPLE IS DIAMONDIFEROUS

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

Key Points:

·      Target 5 float sample (46.5kg) returns high microdiamond count (1.27 per kg)

·      71% of microdiamonds are white/colourless and 98% transparent

·      Stone size distribution shows potential for larger stones in larger samples  

·      Follow up work now being planned

The results being released today are from a 46kg sample collected in early February 2013 as a composite of kimberlite float lying on surface over an area roughly 100m in diameter where the kimberlite float is dense and forms the majority of the surface float material.

Commenting today, Executive Chairman Patrick Cheetham said: "This is a positive result for the project. The Target 5 kimberlite float is confirmed as diamondiferous; the stone count (stones/kg) is the highest seen so far, and whilst the small size of this first sample does not provide enough stones for a meaningful statistical evaluation of diamond grade, initial modeling suggests that the grade is higher than that of the recent drill samples from the Cue 1 kimberlite and that larger stones could be found."

"The surface float at Target 5 is much more extensively developed than that associated with the Cue 1 and Soapy Bore kimberlites suggesting potential for a larger source kimberlite."

Follow up work is now being planned to locate the bedrock source which is thought by the Company to be very local, if not beneath the sampled area.

Further information:

Sunrise Resources plc Patrick Cheetham, Executive Chairman	Tel:	[phone]
Northland Capital Partners Limited Gavin Burnell / Edward Hutton Alice Lane / John Henry-Wicks (Broking)	Tel:	[phone]
Yellow Jersey PR Limited Dominic Barretto / Anna Legge	Tel:	[phone]

Detailled Information

The Cue region 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.

The Target 5 float sample was processed by caustic fusion by 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 sieve sizes are presented in the following table:

		Number of diamonds in sieve size fraction (mm)					Total	Total
Sample	Weight	+0.075	+0.106	+0.150	+0.212	Number		Number
`	Kg	-0.106	-0.150	-0.212	-0.300	Diamonds		per kg
Target 5	46.45	27	17	11	4	59		1.27

From a total of 46.45kg of kimberlite float, 59 diamonds were recovered having a total weight of 153,100 octocarats (10^-8 carats). Of these 71% were white and 29% were off-white, 98% were transparent and 98% showed no inclusions or only minor inclusions and 49% were fragments. 25% of the stones showed signs of minor resorption.

Diamond extraction by caustic fusion is an expensive process and so, in the early evolution of a kimberlite exploration programme, only small samples of kimberlite - such as that described above - are typically taken to determine if the kimberlite is diamond bearing or not. This is because only a small percentage of kimberlites are diamondiferous and the discovery of one diamondiferous kimberlite in a cluster does not mean all kimberlites in that cluster will be diamondiferous. Furthermore, where one or more diamondiferous kimberlites are found in a cluster the diamond grades will vary considerably between those kimberlites and also between different phases of the same kimberlite body.

The Company considers it very significant that all of the kimberlites tested to date on the Cue property are diamondiferous, and each kimberlite needs be considered on its own merits.

The number of stones recovered from small initial samples of kimberlite is not usually sufficient to allow for the meaningful statistical evaluation that is required for grade modelling. However, modelling of the stone size distributions for the initial sample from Target 5 and comparison against those for previously collected samples from Cue and other known kimberlites of commercial interest does allow some broad conclusions. The modelling suggests that the grade of the Target 5 kimberlite is higher than the Cue 1 kimberlite and that a larger sample could contain a more interesting population of larger stones and that collection of a larger sample 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 and collect a larger sample for grade evaluation. 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 target area falls within an area where Aboriginal Heritage clearance has already been obtained.

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 and diamond exploration interests in Western Australia and Finland.

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

 

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