Sunrise Resources PLC Regulatory News (SRES)

1 Aug 2007 08:49

Sunrise Diamonds PLC01 August 2007 www.sunrisediamonds.com 1 August 2007 SUNRISE ANNOUNCES SEPTEMBER START TO DELAYED KIMBERLITE PIPE DRILLING PROGRAMME AT KAAVI-KUOPIO, CENTRAL FINLAND • 200kg Samples To Be Collected From Three Kimberlites For Diamond Recovery • Target 295 Bedrock Kimberlite Source Target Set For Autumn Drilling • Source Kimberlite At Target 298 Could Be "Economically Significant" • Pipe 22 And Eight Further Targets Await Winter Lake Freeze Up Before Drilling Sunrise Diamonds plc ("Sunrise Diamonds" or "the Company") is pleased to providethe following update on its diamond exploration activities in Finland. KAAVI-KUOPIO REGION NORDIC DIAMONDS JOINT VENTURE CLAIMS On 18 April the Company announced a decision to drill several prioritykimberlites in the Kaavi-Kuopio area of central Finland where it is earning upto a 75% interest from Canada's Nordic Diamonds Inc. Increased demand fordrilling services in the current commodity boom has delayed the start of thisdrill programme but the Company is now pleased to advise that drill testing ofpriority kimberlite pipes is contracted to start in September. The drill programme will involve the collection of 200kg samples formicrodiamond testing and grade evaluation from three kimberlites, Pipe 10 (2hectare footprint), Pipe 14 (100m long 30m thick dyke or elongated pipe openalong strike in both directions) and Pipe 17 (2 hectare footprint). These pipeswere selected following encouraging results from evaluation of mineralchemistry, perceived shortcomings in historic evaluation of diamond grade andrecommendations of Minerals Services Canada Inc., a leading diamond exploration,consulting and laboratory group. TARGET 295 Target 295 is suspected to contain the bedrock source area for sedimentscontaining high counts of diamond-prospective kimberlite indicator minerals(including one sample with a microdiamond). A gravity survey has been carriedout over the suspected source area and, so far, three gravity anomalies havebeen drill tested without locating kimberlite in-situ. Several anomalies remainto be drill tested in the autumn. TARGET 298 Kimberlite boulders with high microdiamond contents (22 intact stones and fivefragments in a 20.8kg sample) have previously been recovered by the Company fromsurface glacial sediments in the target area. Further sampling work during thesummer has defined a larger volume of glacial sediments containing very highcounts of diamond-prospective kimberlite indicator minerals and consequently theCompany believes that the source kimberlite could be economically significant.The glacial dispersion patterns in this area are complex and prospecting andsampling designed to narrow the potential source area is currently on-going. OTHER TARGETS Minerals Services Canada Inc. has also recommended further testing of Pipe 22 inthe Kaavi-Kuopio region. As this pipe is located under a lake it will be drilltested in the coming winter when the lake is frozen. A further eight winter "drill ready" kimberlite targets have also been definedbased on lake bottom seismic soundings. The Company is continuing to develop the valuable database acquired from BHPBilliton and in early August will start a sampling programme for nine newpriority targets associated with diamond prospective kimberlite indicatorminerals. KUUSAMO REGION KALETTOMANPURO GROUP II KIMBERLITE A gravity and magnetic survey was recently completed over the Kalettomanpurokimberlite (the Company's original kimberlite discovery in Finland in 2005) todefine the strike extension of the diamond-prospective Group II kimberlite dyke.The data has been sent for review, along with data from Target 295, to Canadianspecialists with a view to generating drill targets for testing in latesummer-autumn. TARGET 32 Drilling at Target 32 in the Kuusamo region, a distinctive bulls-eye magnetictarget in a favourable structural location, did not intersect kimberlite.Magnetic data will be re-modelled using magnetic measurements taken duringrecent drilling to ascertain whether the magnetic anomaly has been adequatelytested. REGIONAL TARGETS Results from sampling at 14 targets in the North Kuusamo area did not returnsignificant numbers of indicators and no further work is currently planned onthese particular targets. Further information: Patrick Cheetham, Sunrise Diamonds plc. Tel: +44 (0)1625-505947. Mobile: +44(0)7767 458751 Ron Marshman/John Greenhalgh, City of London PR Limited. Tel: +44(0)20-7628-5518 Brett Miller/Roxane Marffy, Ruegg & Co Limited. Tel: +44(0) 20 7584 3663 This information is provided by RNS The company news service from the London Stock Exchange