Cue Diamond and Corona Gold Projects - Update

RNS Number : 8398O

Sunrise Resources Plc

12 August 2014

 

12 August 2014

SUNRISE RESOURCES PLC

(the "Company")

CUE DIAMOND PROJECT

DIAMOND SAMPLING RESULTS - SOAPY BORE KIMBERLITE

Sunrise Resources plc, the AIM traded diversified mineral exploration and development company, is pleased to report diamond sampling results from a drill sample of the Soapy Bore kimberlite at its Cue Diamond Project ("Cue") in Western Australia.

Highlights:

·     Soapy Bore Kimberlite confirmed as diamondiferous

·     227 diamonds recovered from 272kg of kimberlite processed (0.83 stones/kg)

·     Diamond size distribution is less favourable than for Target 5 samples but may be affected by significant diamond breakage. Further evaluation is required

·     All kimberlite samples tested to date from the Cue Diamond Project are diamondiferous

·     Diamond sampling results from other targets expected shortly

Other Projects:

·     Corona Gold Project exploration licence in Western Australia now granted

Commenting today, Executive Chairman Patrick Cheetham said:"I am pleased that drill sampling has confirmed the Soapy Bore kimberlite to be diamondiferous, as is the case for all kimberlite samples tested so far at Cue. The size distribution of the recovered diamonds from Soapy Bore is less favourable than that obtained from float samples at high priority Target 5 but firm conclusions cannot be drawn until the effect of stone breakage at Soapy Bore is carefully evaluated."

Further information:

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

DETAILED INFORMATION

The sample being reported is a composite sample of the Soapy Bore kimberlite dyke comprising 34 individual 8kg samples taken from consecutive 1m intervals from 62m to 96m depth down hole in reverse circulation (RC) percussion drill hole 14CURC39.

A total of 272kg of kimberlite was processed by caustic fusion by Saskatchewan Research Council Geoanalytical Laboratories Diamond Services (SRC) which is accredited to ISO/IEC 17025:2005. Industry standards have been followed to ensure that the Chain of Custody has been maintained. The results of diamond picking by SRC from various sieve sizes are presented in the following table:

Sample: Drill Hole 14CURC39, 62-96m 272kg Dry weight
			No. of diamonds in sq. mesh sieve size fraction (mm)						Diamonds
No of Diamonds			+0.075	+0.106	+0.150	+0.212	+0.300	+0.425	Number
			-0.106	-0.150	-0.212	-0.300	-0.425	-0.600	per kg
Total	227		119	61	31	11	5	0	0.83
Fragments	44		27	10	7	0	0	0
Broken	11		3	5	0	0	3	0

"Broken" means a stone where it is estimated that up to 40% of the original shape is missing.

A "Fragment" is a stone comprising less than 40% of the original diamond shape from which it is derived.

From a total of 272kg of kimberlite 227 diamonds with a total weight of 971,950 octocarats

(10^-8 carats) were recovered. The diamonds recovered are 89% white/colourless, 93% transparent and 94% showed no inclusions or only minor inclusions; 39% of the stones showed low levels of resorption.

60% of the diamonds in the largest size range represented (3 out of 5 stones) were broken, and 19% of all stones recovered were described as fragments. Diamonds are hard, but they are also brittle and so susceptible to breakage by the percussive action of the hammer head during percussion drilling. The effect of breakage is to reduce the number of stones in the larger size categories and increase the number of stones in the smaller size categories. The Soapy Bore kimberlite is silicified and consequently the potential for breakage is increased. This has implications for the projection of diamond grade and requires further evaluation and expert advice. A decision on processing further Soapy Bore kimberlite drill sample will be deferred until this advice is obtained.

The Company expects to receive diamond sampling results shortly from several other drill targets tested at Cue in the last drill programme.  In most cases only small drill samples were available from these targets and the diamond sampling is mainly to assist in the discrimination of high interest weathered samples as kimberlite. Whilst the absence of diamonds will not discriminate against the presence of kimberlite in such small (statistically unreliable) samples, any recovery of diamonds will, of course, be positive for the identification of kimberlite.

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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