Sunrise Resources PLC Regulatory News (SRES)

9 Jul 2008 09:13



www.sunrisediamonds.com

9 July 2008

MORE MICRODIAMONDS RECOVERED FROM 

KIMBERLITE 14 ON NORDIC JV CLAIMS IN FINLAND 

Second Picking Of Sample Increases Total To 47 Microdiamonds

Dyke-Like Nature Kimberlite 14 Warrants Further Evaluation Along Strike

Drilling Needed To Test Beneath Overburden At Target 298

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Sunrise Diamonds plc ("Sunrise" or "the Company") is pleased to report the results of further microdiamond evaluation of a drill sample from Kimberlite 14 on its Nordic Joint Venture claims in the Kaavi-Kuopio region of central Finland. 

The results reported here are supplemental to those issued on 29 February 2008 since when further microdiamonds have been recovered from the 2007 drill sample.

The sample collected from Kimberlite 14 weighed 209.82kg, and was initially subject to caustic fusion at SGS Lakefield Research in Johannesburg. The resulting residues were shipped to Mineral Services Laboratory (MSL) in Cape Town for recovery, weighing and  description of the microdiamonds. Whilst 35 microdiamonds were recovered by MSL, the hand-sorting process was hampered by an unusually large volume of residue and so further quality control processing and sorting was carried out. The residues were submitted to the Kennecott Canada Exploration Inc, Mineral Processing laboratory (KCEI) Laboratories in Canada for further dissolution using their proprietary fusion process and an additional 12  microdiamonds were recovered by KCEI during sorting of the resulting residue.

In total 47 microdiamonds were recovered. A breakdown of the diamonds recovered from Kimberlite 14 is as follows:

The recovered microdiamonds included a number of yellow cubo-octahedrons which Mineral Services was unable to equivocally differentiate as either natural or synthetic (i.e. originating from the drill bit during the drilling process), although Kennecott accepted these stones as natural. 

Whilst insufficient sample has been collected, thus far, to allow for statistically reliable grade modelling of Kimberlite 14, these results indicate that it is probably low grade where sampled. However, Kimberlite 14 is dyke-like and kimberlite dykes can be highly variable in grade and width along strike. As Kimberlite 14 is wide (approx. 40m), and still open along strike in both directions, the Company considers that further delineation of the dyke and its diamond content is warranted.

Elsewhere in the Kaavi-Kuopio district exploration has been continuing on a number of other kimberlite targets. 

Further trenching at Target 295 on the Nordic JV claims has failed to identify the source of the kimberlite boulders and diamond indicator minerals in surface sediments. The density of drilling and trenching is now sufficient to conclude that either the source is not local, or that it is too small to be economically significant. No further work is planned for this target.

At Target 298, on the Company's 100% owned claims, where a ground magnetic survey has identified a bulls-eye magnetic anomaly close to a large number of high-interest kimberlite boulders, trenching failed to reach bedrock. Drilling is now required to test this target beneath the deep overburden.

Further information:

Patrick Cheetham, Sunrise Diamonds plc. Tel: +44 (0)1625-505947. Mobile: +44(0)7767 458751

Ron Marshman/John Greenhalgh, Lothbury Financial. Tel: +44(0)20-7011 9411

Brett Miller/Roxane Marffy, Ruegg & Co Limited. Tel: +44(0) 20 7584 3663

Note:

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 Guidance Note for Mining Oil & Gas Companies issued on March 16, 2006. Mr. Cheetham is a Member of the Institute of Materials, Minerals & Mining and also a member of the Australasian Institute of Mining & Metallurgy.

Background.

Sunrise Diamonds plc is earning up to a 75% interest in a number of claims from Nordic Diamonds Inc. in the Kaavi-Kuopio kimberlite cluster in Finland and as a result holds, or is earning an interest in 16 of the 20 known kimberlites in this cluster.  It has also discovered seven kimberlites in a new cluster in the Kuusamo area of Northern Finland.

Three of the kimberlite bodies in the Kaavi-Kuopio area, Kimberlites, 12, 21 and 13 have been shown by historic bulk sampling to have grades between 15 and 26 carats per hundred tonnes. Whilst individually these pipes may be too small for development, they may have commercial potential to provide feed for a central processing plant and so work in this area has focused on the evaluation of other known pipes, for example Pipes 10, 14 and 17 and the discovery of new kimberlites.