Project Updates

RNS Number : 8062K

Sunrise Resources Plc

30 June 2014

 



SUNRISE RESOURCES PLC 

30 June 2014

PROJECT UPDATES

Second new kimberlite discovered at Cue Diamond Project

Acquisition of new gold-silver-copper project in USA

Sunrise Resources plc, the AIM traded diversified mineral exploration and development company ("the Company"), is pleased to provide the following update on a number of its key exploration projects and to announce the acquisition of a new copper-gold-silver project in Nevada, USA.

Highlights:

Cue Diamond Project, Western Australia

·           First diamond results from Soapy Bore kimberlite expected in approximately 4-5 weeks

from an initial 250kg of the one-tonne sample sent to Canada

·           Further geochemical & mineralogical work now completed on drill samples - indicates

new kimberlite discoveries

·           Second batch of samples on its way to Canada for microdiamond extraction from new

kimberlite discoveries and other high interest targets

Baker's Gold Project, Western Australia

·           Native Title Agreement signed to enable future exploration

·           Prospecting Licences now granted

·           Planning in progress for drilling and geochemical sampling

County Line Diatomite Project

·           Further samples taken from the surface over a wide area to check quality and variability in     

      the diatomite deposit

·           Samples are now in Germany for testing - results expected in approximately 4 weeks

New Project Nevada:

Garfield Project - Gold, Silver & Copper

·           24 lode claims staked to centre on zone of outcropping gossan

·           Grab sample of gossan contains 6% copper, 3.5 g/tonne gold and 4 oz/tonne silver

Commenting today, Executive Chairman Patrick Cheetham said: "I am pleased to be reporting a second new kimberlite discovery on our Cue project and the grant of our Baker's gold Prospecting Licences in Australia. We are also moving quickly to build and explore our portfolio of projects in Nevada where the system allows for rapid acquisition of minerals rights and project exploration."

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/Kelsey Traynor	Tel:	[phone]

DETAILED INFORMATION

Cue Diamond Project

Details of the latest drill programme at Cue were given in the Company's news release dated 28 April 2014 together with preliminary findings from visual inspection of drill cores and geochemical evaluation using field based instruments.

The one-tonne kimberlite sample collected from the Soapy Bore kimberlite is now in Canada for diamond extraction. Initially, 250kg will be processed by caustic dissolution for diamond extraction and description. If these initial results justify the costs, the remaining sample will be processed. First results are expected in approximately 4 weeks' time.

The Company has now completed an extensive programme of geochemical analysis and mineralogical work on various high interest drill samples. In most cases this work has aimed to distinguish between kimberlite and surrounding granite as strong weathering has altered all of the rocks in the project area to depths of up to 60m destroying many of their original distinguishing features and changing their diagnostic chemistry. Most drill holes were shallow and drilled exclusively in the weathered zone. The situation is complicated by the occurrence of higher than average levels of rare-earth elements and niobium in the granite which are sometimes taken to support identification of weathered kimberlite and the kimberlites contain quartz (through hydrothermal alteration) that would otherwise be characteristic of granite.

New kimberlite discovered northwest of Soapy Bore kimberlite

Geochemical analysis has, however unequivocally revealed kimberlite in the near surface weathered zone between 8-14m down-hole in drill hole 14CUAC44. This is located 300m north west of the Soapy Bore kimberlite. Its relationship to the Soapy Bore kimberlite is not clear but it is thought to be a separate body.

The drill sample of this kimberlite currently available is now being sent to Canada for microdiamond extraction.

FW kimberlite confirmed by mineralogical evaluation

In the above-mentioned news release a new kimberlite drill intersection was also reported at the FW Prospect some 4km west of Soapy Bore in drill hole 14CURC53 based on visual identification and in-field analysis. This is now confirmed by a thin section evaluation and a sample of this kimberlite is also being sent to Canada for microdiamond analysis.

Target 5 kimberlite float source remains to be discovered

Geochemical results suggest a narrow kimberlite may have been intersected at shallow depth in drill hole 14CURC33 at Target 5 but the data is equivocal. In any event, this body of rock is not of sufficient size to be the source of the widespread and dense area of kimberlite float that is found at Target 5 and the Company continues to believe that a significant source remains to be found in this area.

The Company is planning to extend the existing geophysical survey on this target to cover the expanded area of float discovered during the recent drill programme. The Company expects to carry out this survey in the next few weeks.

Thick clay zone at Target 1a - samples submitted for microdiamond extraction.

A sample taken from the previously reported thick clay zone encountered in drill hole 14CUAC54 has been identified by X-Ray Diffraction and Scanning Electron Microscope studies as predominantly containing the clay minerals smectite and kaolinite. Smectite is a common weathering product of kimberlite and less commonly of granite but the geochemistry of the samples in not conclusive.

A sample is being submitted for microdiamond extraction as any recovery of diamonds will conclusively identify a kimberlite origin for this clay. 

Area 6

Clay zones with ambiguous chemistry were also intersected in drill holes 14CURC48, 49, 50 and 51. Samples from all of these holes are being submitted for microdiamond analysis.

Baker's & Corona Gold Projects, Western Australia

The Company has now signed a Native Title Agreement with the Yugunga-Nya Aboriginal Claimant Group to govern the conduct of future exploration on the Company's project areas at Baker's and Corona.

As a result, the Company's 10 Prospecting Licences applications have been granted by the Department of Mines & Petroleum. The Company is currently planning a programme of geochemical sampling and drilling.

The Corona Exploration Licence application is covered in one corner by a competing land claim by the Wutha Aboriginal Claim Group which objects to the expedited grant of the application. The Wutha Claim overlaps that of the Yugunga-Nya. As it is impractical to have two Native Title Agreements over the same area the Company is taking the objection to Inquiry with the National Native Title Tribunal. The Company expects that the Tribunal will find in its favour, clearing the way for grant of the licence application. This process could take up to 16 weeks.

County Line Diatomite Project, Nevada, USA

Following the announcement on 12 May 2014 of positive results from initial testwork on samples from the Company's County Line Diatomite Project in Nevada a further series of surface sample have been taken from an area of several square kilometres of diatomite deposit in order to further characterise the quality and variability of the diatomite.

Samples are now in Germany for testwork and results are expected within 4 weeks.

New Project - Nevada, USA

The Company is continuing its project generation and reconnaissance programme in Nevada and as a result of reconnaissance work carried out earlier this month the Company has staked a further 24 claims in a new project area it now calls Garfield.

Garfield Gold-Silver-Copper Project  

Twenty-four lode claims covering an area of 2 sq. km. were staked last week in an area 10km west of the town of Hawthorne in southern Nevada.

The claims centre on a small outcrop of gossan found by the Company earlier this month during a reconnaissance programme. A sample of this gossan has assayed 6% copper, 3.5g/tonne gold and 4 ounces/tonne silver.  The extent and significance of this mineralisation is currently unknown due to the extensive cover of scree from surrounding hills but the mineralisation does not appear to have been drill tested and presents an exciting target for immediate follow up.

The Walker Lane Mineral Belt in which this prospect occurs is known for its economic porphyry, skarn and IOCG type copper-gold deposits.

A plan showing the location of this project and photographs showing the mineralisation will be placed on the Company website soon at: http://www.sunriseresourcesplc.com/projects/garfield-project

Ends

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.  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 company. The Company has diamond exploration interests in Western Australia and Finland and holds a white barite project in South-West Ireland.

The Company has two gold exploration projects in Western Australia and has an active project programme to generate new exploration projects in Australia and Nevada, USA.

It has recently staked claims over the Strike Copper Project, the County Line Diatomite Project and the Garfield Gold-Silver-Copper Project in Nevada, USA.

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

 

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