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4 Nov 2009 11:12
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Sunrise
Diamonds PLC
www.sunrisediamonds.com
4Β NovemberΒ 2009
LATEST REPORT CONFIRMSΒ CUE KIMBERLITES AREΒ DIAMONDIFEROUS
NewlyΒ Released Report Provides Information On Diamond Sampling OfΒ SoapyΒ Well KimberliteΒ
AdditionalΒ Work Defined MultipleΒ Kimberlite Drill TargetsΒ In AreaΒ Along Strike FromΒ CueΒ 1 And In New Area Of Kimberlite FloatΒ
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Further to its announcementΒ ofΒ 29 October,Β Sunrise Diamonds plc ("Sunrise" or "the Company") is pleased to announce thatΒ newly released informationΒ confirms that the CueΒ 1Β and Soapy Well kimberlites,Β on the Company's new licence application area inΒ Western Australia,Β are diamondiferous.
In aΒ 2001Β report,Β previously retained as confidential,Β butΒ released to open-file yesterdayΒ by the Geological Survey of Western AustraliaΒ following enquiries by the Company, De Beers reportedΒ positiveΒ diamond sampling results from the main kimberlite dykeΒ atΒ Soapy Well. Β DeΒ Beers also reportedΒ positive resultsΒ fromΒ follow-up exploration at two separate additional kimberlite targets within the Company's new licence application area.
According to De Beers,Β 13 diamonds were recovered for a total weight of 0.00379 carats from a 64kg sampleΒ of kimberlite taken fromΒ drill-core at Soapy Well.Β Β Whilst not providing any information on sampling of theΒ Cue No.1 kimberlite the report statesΒ thatΒ Β "twoΒ diamondiferous dykes, Cue 1 and Soapy WellΒ 1, have been discoveredΒ so far".
The recently releasedΒ reportΒ alsoΒ provides details ofΒ furtherΒ soil sampling and ground geophysicsΒ whichΒ identified multiple drill targetsΒ for kimberliteΒ at Fennels Well,Β 2.5km along strike from the Cue No 1 kimberliteΒ and in a separate areaΒ close to the Cue IΒ kimberliteΒ where aΒ new area ofΒ kimberliteΒ rock debrisΒ was found.Β
Commenting today, Patrick Cheetham, Chairman of Sunrise saidΒ Β "These newly released resultsΒ validatesΒ ourΒ belief that something of real interest was found by De BeersΒ andΒ our beliefΒ that theirΒ decision not to continueΒ atΒ CueΒ was more due to a change in strategy rather than the results ofΒ theirΒ exploration."
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Further informationΒ - see background information below or contact;:
Patrick Cheetham, Sunrise Diamonds plc. Tel: +44 (0)1625-505947.Β Mobile: +44(0)7767 458751
Brett Miller/Gavin Burnell, AstaireΒ Securities plc. Tel: +44(0)20 7448 4400
The information in this release has been compiled and reviewed by Mr. Patrick Cheetham (MIMMM, MAusIMM) who is a qualified person forΒ the purposes of the AIMΒ Note for MiningΒ andΒ Oil & Gas CompaniesΒ dated June 2009. Mr Cheetham is a Member of theΒ InstituteΒ ofΒ Materials, Minerals & Mining and also a member of the Australasian Institute of Mining & Metallurgy.
Background Information.
The Company has applied for exploration licence (ELA20/727) covering an area of approximately 70 square km and is located 70km to the north-west of the town ofΒ CueΒ in the Murchison Mineral Field in the Yilgarn Craton ofΒ Western Australia.Β
At the "Cue 1" locality a kimberlite dyke outcrops and is reported by De Beers to be 2-3m wide. Several drill holes intersected the dyke and one vertical hole intersected kimberlite from surface to 60m depth. At Soapy Well, 7km to the west, at least three closely spaced kimberlite dykes, up to 3m wide, were encountered in two drill traverses spaced 400m apart.
Also of interest within the licence area is a sulphide-bearing gabbro dyke that was intersected in several drill holes by De Beers prior to the discovery of the Cue 1 kimberlite. Although not of interest to De Beers for diamond exploration, this gabbro dyke is now targeted byΒ SunriseΒ for PGM's and gold. It is located in the same region as the Weld Range PGM deposit (reported Inferred Resource >0.5 million ounces platinum+palladium+gold) the discovery of which was initiated by Sunrise Executive Chairman, Patrick Cheetham, when Joint Managing Director of Dragon Mining NL.
The De Beers exploration licences in this area expired in 2001, shortly after De Beers failed to secure the takeover of Ashton Mining and its interest in the ArgyleΒ DiamondΒ Mine inΒ AustraliaΒ and shortly afterΒ that De Beers ceased all exploration inΒ Australia. De Beers'Β expenditure in theΒ immediate area of theΒ Company's licenceΒ applicationΒ area exceeded Aus$1 million.
A map showing the location of ELA20/727isΒ available on the Company's website under the "Projects" Tab (Cue Project).
The Cue project is the first of a number of new projects planned by the Company to broaden its geographical base and widen its commodity interests which, to-date,Β have been focused on diamond exploration inΒ Finland.
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