Last checked at 6 Jul 2011 07:00
SUNRISE RESOURCES PLC
6 July 2011
DRILLING PROGRAMME COMMENCED AT DERRYGINAGH BARITE PROJECT
Sunrise Resources plc, the AIM-quoted diversified mineral exploration and development specialist, is pleased to announce that, following the completion of a positive concept study for the development of an underground mine, it has now commenced a drilling programme at its Derryginagh Barite Project in south-west Ireland.
Eight diamond drill holes have been provisionally planned to test the main vein system over a strike length of 500m and to a depth of up to 150m. The drilling, which is aimed at the definition of a 1JORC Mineral Resource, is expected to last about 6 weeks and results should be available approximately 6 weeks after completion of the drilling.
In May this year the Company announced that a Concept Study suggested that a profitable operation could be developed for an output of at least 50,000 tonnes per year of barite based on their estimates of mining and processing capital and operating costs and on published barite sales prices.
Metallurgical evaluation is continuing at SGS Mineral Services UK Limited in Cornwall on a large sample of barite collected from a surface trenching programme. This will generate more detailed process plant design data as well as generating further samples for market appraisal.
Commenting on today's news, Patrick Cheetham, Executive Chairman, said: "With drilling now underway at both Long Lake and Derryginagh it promises to be a highly active summer for the Company and we look forward to the results."
Further information:
Sunrise Resources plc Tel: +44 (0) 845 868 4590
Patrick Cheetham, Executive Chairman Mobile: +44 (0)7767 458751
Northland Capital Partners Limited Tel: +44 (0)20 7796 8800
Gavin Burnell / Rod Venables
Charles Vaughan (Sales)
Yellow Jersey PR Limited Mobile: +44 (0)7768 537 739
Dominic Barretto
Notes:
1. The JORC Code is the Australasian Code for the reporting of Exploration results, Mineral Resources and Ore Reserves prepared by the Joint Ore Reserves Committee (JORC) of the Australasian Institute of Mining & Metallurgy, Australian Institute of Geoscientists and the Minerals Council of Australia and published in 2004).
2. 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.
3. Reference to dates or timetables for exploration programmes and the receipt of results are based on the Company's expectations held at the date of this release. Such timetables often depend on outside contractors, weather conditions and permitting issues beyond the Company's control and are therefore subject to change.
Notes to Editors:
About Derryginagh Barite Project
The concept for Derryginagh is for a modest-sized underground mining operation feeding a low cost gravity separation plant producing high-value filler grade barite.
Barite is the mineral form of the chemical barium sulphate. It is an environmentally friendly, non-toxic natural product. It is chemically and physically unreactive, has a high specific gravity, and low oil adsorption. It also has good sound-deadening and radiation-shielding properties. These properties make barite suitable for use as a weighting agent in oil industry drilling muds and as higher value industrial filler in, for example, paint plastics, brake linings and acoustic panels.
The Derryginagh mine was worked in the period 1864-1922, supplying white barite to the local paint industry. The mine workings extend over a strike length of 200m and to a maximum depth of 60m. In the 1980s four holes drilled by Dresser Minerals International Inc. intersected the barite vein over an average true width of 2.4m at about 100m below surface and over a total strike length of 200m, with the vein being open along strike and at depth.
There is a significant demand for white paint-grade barite in Europe but no major mine supply outside of China and India. Consequently there is a niche opportunity for a new European supplier as China's own internal demand limits traditional exports. The price currently quoted for white paint grade barite is £195-220/tonne delivered in the UK.
About Sunrise Resources
Sunrise Resources plc was formed to acquire the diamond exploration interests of Tertiary Minerals plc in 2005. Since then the Company has made a number of new kimberlite discoveries in Finland and expanded its portfolio of diamond exploration interests to include a new project near Cue in Western Australia.
In 2009 the Company made a strategic decision to diversify its project interests. It believes that the Derryginagh Project has the potential for a modest scale mining operating that could, in time, produce a valuable cash flow for the Company.
In May 2010, the Company secured an option agreement for the Long Lake Gold-Nickel-Copper-PGM project 20km south-west of the City of Sudbury, Ontario (Canada). The Long Lake Gold Mine produced 57,000 ounces of gold from over 200,000 tonnes of ore mined in the periods 1910-1916 and 1932-1939 and has considerable untested gold potential. The claims also cover potential extensions to the currently producing Copper Cliff dyke system at the heart of the world's most productive nickel-copper mining complex.
Various maps and images illustrating some of the features discussed in this release are available on the Company's website at:
http://www.sunriseresourcesplc.com