Tue, 23rd Sep 2014 07:00 RNS Number : 3061S Sunrise Resources Plc 23 September 2014
23 September 2014
AUSTRALIAN GOLD PROJECTS
Sunrise Resources plc, the AIM traded diversified mineral exploration and development company ("the Company"), is pleased to provide the following update on exploration of its two gold projects in the Murchison Goldfield of Western Australia.
Corona Gold Project
· Soil sampling programme now in progress
· Approx. 525 samples being collected on 200m by 200m offset grid
· Results should be available in approximately 6 weeks
Bakers Gold Project
· Soil sampling programme to commence within 2 weeks
· Approx. 575 samples to be collected on 200m by 100m offset grid with 100x50m sampling over certain areas of higher interest
· Results expected in approximately 8 weeks
· Application made for prospecting licence adjoining west side of project targeting gold bearing quartz-stockwork at historic Dickey Lee Gold Mine
Commenting today, Executive Chairman Patrick Cheetham said: "The main objective of our soil sampling programmes is to add targets to those already set for testing in the first drill programmes which we hope to carry out later this year. We will look to fast track the grant of the Dickey Lee licence application by including it in the existing Aboriginal Heritage Agreement as this also presents a drill-ready target."
The company already holds assets with the potential for diamonds, barite, gold, diatomite, and copper.
The latest addition is silver, via a project in Nevada. But it’s not that Patrick particularly likes silver. “What drives me is not the commodity itself, but the quality of the opportunity”, he says.
More relevant perhaps than the specific commodity is the jurisdiction. Both Sunrise and sister company Tertiary Minerals already have projects in Nevada, and it’s clearly a part of the world that Patrick feels comfortable operating in.
Currently the suite of Sunrise assets is split primarily between Australia and the USA. The flagship remains the Cue diamond project in Western Australia, but the American assets, the Strike copper project, the County Line diatomite project and now the Bay State silver project, have much to recommend them, not least ease of permitting.
“You can get on the ground and work much more quickly”, says Patrick. “In Australia it’s partly native title issues, and partly just delays in the process. But in the US, within a couple of months you can be drilling.
And so it is that at the end of the press release announcing the deal, the following innocuous phrase appears: “a follow-up sampling programme will start shortly”.
It’ll be interesting to see what sort of results that programme shows up, but the early signs are good.“I only took three samples”, says Patrick, of the preliminary work that led towards the deal. “But the minimum grade was eight ounces of silver. The veins have a good length and continuity. It’s a prospect that you don’t often come across.”
That it’s available now is because the land has been privately held by an individual family for the past 70 years. Because of that it hasn’t benefited from the same level of exploration activity that most other ground in Nevada has over that time.
“The old mine lies at the base of a canyon”, says Patrick. “It was only mined above the 200 foot level, although they also drove an adit in and stoped above the adit.”
So, lots for Sunrise to get its teeth into in the coming months, and all for very little outlay. The company has paid an initial US$5,000 to lease the claims, and this will be renewed annually, increasing in US$2,500 increments up to a maximum of US$20,000 per year.
If Sunrise then elects to proceed to what’s termed “commercial scale” mining, it will then pay out a further US$250,000 plus a two per cent net smelter royalty.
That allows the company plenty of exposure to the upside in an early stage without putting shareholders equity overly at risk.
And it also means that the work on Bay State can get going even as the focus returns to Cue. “The Cue project has been our lead project for some time”, says Patrick, and that’s not about to change.
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.