Sunrise Res Regulatory News (SRES)

29 Feb 2008 11:00

Sunrise Diamonds PLC29 February 2008 www.sunrisediamonds.com 29 February 2008 ENCOURAGING RESULTS FROM DIAMOND SAMPLING OF KIMBERLITE ON NORDIC JV CLAIMS IN FINLAND • Several Macrodiamonds Recovered From Pipes 10 And 17 • Coarse Diamond Distribution Indicated For Pipe 17 • Follow Up & Larger Scale Sampling Of Pipe 17 Recommended By Consultant__________________________________________________________________________ Sunrise Diamonds plc ("Sunrise" or "the Company") is pleased to reportencouraging results from a programme of microdiamond evaluation on kimberliteson its Nordic Joint Venture claims in the Kaavi-Kuopio region of central Finland. The results now being reported are from drill samples collected by SunriseDiamonds from Kimberlite Pipes 10 and 17 during the Autumn of 2007 and arecontained in a report received by the Company from its consultant MineralServices Canada Inc., a specialist diamond consulting company. Mineral Servicesalso reported on a sample from Kimberlite 14 but further work is required onthese samples before detailed information can be released. Mineral Services has reported the presence of macrodiamonds (stones where atleast one dimension exceeds 0.5mm) from each of Pipes 10 and 17 as well as asignificant number of larger sized stones and a relatively coarse stone sizedistribution in the sample from Pipe 17. The diamonds recovered from Pipe 17have positive value characteristics, most being colourless and of moderate togood quality. Pipe 17 is considered to have further commercial potential andMineral Services has recommended follow up and larger scale sampling of Pipe 17to confirm the grade potential. The primary aim of the 2007 drilling programme was to quantify the microdiamondcontent of the three kimberlites sampled, to assess the diamond valuecharacteristics of the microdiamonds and, if possible, to undertake modelling ofthe grade of commercial-sized stones. Samples of 202.76kg, 209.82kg, and 134.96kg from, respectively, Kimberlites 10,14 and 17 were subject to caustic fusion at SGS Lakefield Research Africa inJohannesburg. The resulting residues were shipped to Mineral Services laboratoryin Cape Town for recovery and description of microdiamonds. A breakdown of the diamonds recovered from Pipes 10 an 17 (by sieve size) is asfollows: +----------+-------+---------------------------------------------------------+| | |Sieve size (mm) |+----------+-------+-----+-----+-----+-----+-----+-----+-----+------+--------+|Kimberlite|Sample |.105 |.150 |.212 |.300 |.425 |.600 |.850 |1.180 | Total || |Weight | | | | | | | | | ||Number | (kg) | | | | | | | | | |+----------+-------+-----+-----+-----+-----+-----+-----+-----+------+--------+|#10 |202.76 | 4 | 1 | 2 | 2 | 2 | 0 | 0 | 1 | 12 |+----------+-------+-----+-----+-----+-----+-----+-----+-----+------+--------+|#17 |134.96 | 14 | 4 | 1 | 1 | 3 | 0 | 2 | 0 | 25 |+----------+-------+-----+-----+-----+-----+-----+-----+-----+------+--------+ Three macrodiamonds were recovered from Pipe 10 and five from Pipe 17. The sizeof the macrodiamonds recovered from each pipe is given by screen size in thefollowing table: Kimberlite Size Diamond Measurements Measurements Measurements Number fraction Number z (mm) (um) x (mm) y (mm) #10 425 1 0.99 0.47 0.62 #10 425 2 0.77 0.52 0.62 #10 1180 1 1.70 0.93 1.57 #17 425 1 0.67 0.52 0.55 #17 425 2 0.67 0.50 0.50 #17 425 3 0.75 0.50 0.57 #17 850 1 0.99 0.75 0.99 #17 850 2 1.02 0.75 0.87 Due to the paucity of a statistically reliable number of stones in the largersieve classes, grade modelling was not possible on these samples. However, theresults of an evaluation of the microdiamond populations, in particular the sizedistribution, and detailed evaluation of the quality of the microdiamondsallowed Mineral Services to draw a number of conclusions regarding thecommercial potential of the pipes. In addition to the positive conclusions reached on Pipe 17 discussed above, thediamonds recovered from the sample from Pipe 17 showed a number of positivefeatures relating to their quality. Several of the larger stones are white(colourless) octahedrons and dodecahedrons with good form and moderated to goodclarity. Kimberlite Pipe 10, a 2 hectare pipe, returned the largest stone from theprogramme (a 1.7mm x 157mm x 0.93mm fairly good quality white macle). However,this stone is considered by Mineral Services as an outlier and based on very lowstone recoveries the grade potential of this body is considered to be low. Inaddition stone quality overall is poorer than for Pipe 17 and no further workwas recommended by Mineral Services on Pipe 10. The results from Kimberlite 14, believed to be a dyke, are not being reportedhere as further quality control is needed to categorise the recovered diamonds.However, initial results suggest an unfavourable stone size distribution and nofurther work is recommended by Mineral Services on Kimberlite 14. SunriseDiamonds notes, however, that the character of kimberlite dykes is oftenvariable along strike and for that reason considers further work is warranted tofollow the kimberlite along strike where it is open. In addition to continuing its programme aimed at the discovery of newkimberlites, the Company will now evaluate the tonnage potential of the best ofthe Kaavi-Kuopio pipes, including Pipe 17, as the first stage in a scoping studyto evaluate in more detail the concept for the construction of a centralprocessing plant for development of kimberlites in the Kaavi-Kuopio cluster. 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 Background. Sunrise Diamonds plc is earning up to a 75% interest in a number of claims fromNordic Diamonds Inc. in the Kaavi-Kuopio kimberlite cluster in Finland and as aresult holds, or is earning an interest in 16 of the 20 known kimberlites inthis cluster. It has also discovered seven kimberlites in a new cluster in theKuusamo area of Northern Finland. Three of the kimberlites bodies in the Kaavi-Kuopio area, Kimberlites, 12, 21and 13 have been shown by historic bulk sampling to have grades between 15 and26 carats per hundred tonnes. Whilst individually these pipes may be too smallfor development, they may have commercial potential to provide feed for acentral processing plant and so work in this area has focused on the evaluationof other known pipes, for example Pipes 10, 14 and 17 and the discovery of newkimberlites. Note: The information in this release has been compiled and reviewed by Mr. PatrickCheetham (MIMMM, MAusIMM) who is a qualified person for the purposes of the AIMGuidance Note for Mining Oil & Gas Companies issued on March 16, 2006. MrCheetham is a Member of the Institute of Materials, Minerals & Mining and also amember of the Australasian Institute of Mining & Metallurgy. This information is provided by RNS The company news service from the London Stock Exchange