Sunrise Res Regulatory News (SRES)

19 Jul 2005 07:00

Sunrise Diamonds PLC19 July 2005 www.sunrisediamonds.com July 19, 2005 KEY KIMBERLITE INDICATORS FOUND AT FIVE MAGNETIC TARGETS IN N. FINLAND •Drill Testing of Priority Targets In Diamond Search To Start Within Days • Indicator Minerals Include Kimberlitic Chromites, Pyrope And Picro-Ilmenites Sunrise Diamonds plc, ("Sunrise Diamonds" or "the Company") is pleased toannounce that drill testing of magnetic targets at its Kuusamo diamond projectin northern Finland will start within the next few days. This follows thefinding, in early sampling, of kimberlite indicator minerals ("KIMs") includingkimberlitic chromites, pyrope garnets, picro-ilmentites, and chrome diopsides.KIMs are minerals typically found in kimberlites, the main primary source ofdiamonds. The Karelian Craton, a geological block that underlies northern and central-eastFinland and a part of neighbouring western Russia, is considered by the Companyto be one of the most diamond prospective areas in the world. Over the borderthis craton hosts the world-class Arkhangelsk diamond deposits, whilst theprospectivity of the Finnish part of the craton has been further enhanced by theannouncement by European Diamonds PLC last week of the discovery of a newkimberlite body in central Finland. Since admission to AIM on 6 June the Company has progressed quickly in itsevaluation of its untested targets at Kuusamo. A total of 89 surface and basaltill samples have now been taken to test for glacial dispersion of possiblekimberlite material from a total of 33 magnetic targets. In addition groundmagnetic surveys have been carried out at 11 targets. Thirty-one of the tillsamples have been processed for indicator mineral recovery by the GeologicalSurvey of Finland (GTK) as contractor for Sunrise Diamonds. GTK has commenced preliminary indicator mineral picking and microprobe analysesof selected indicator mineral grains to confirm their kimberlitic parentage. Todate KIMs have been found in six samples associated with five of the initialmagnetic targets. They include "kimberlitic" chromites having compositionsmatching chromites found as inclusions in and inter-grown with diamond,"kimberlitic" picroilmenites with compositions favouring diamond preservation,pyrope garnet, and chrome-diopsides of mantle origin. Drilling will progressively test priority targets defined by a combination ofmagnetic anomalies and kimberlite indicator minerals. Indicator mineral samplingand picking is continuing. "It is particularly exciting to get such positive results so early in theprogramme and raises an expectation that further kimberlites will be discoveredin the Kuusamo area." commented Patrick Cheetham, Sunrise Diamonds' Chairman,today. Further Information: Patrick Cheetham, Sunrise Diamonds plc. Tel: +44 (0)1625-505947. Mobile: +44 (0)7767-458751John Greenhalgh/Ron Marshman, City of London PR Ltd. Tel: +44 ( 0)20-7628-5518 This information is provided by RNS The company news service from the London Stock Exchange