Last checked at 19 May 2011 07:00
19 May 2011
SUNRISE RESOURCES PLC
POSITIVE CONCEPT STUDY - DERRYGINAGH BARITE PROJECT
Sunrise Resources plc, the AIM-quoted diversified mineral exploration and development specialist, is pleased to announce that it has received positive results from a concept study for the development of an underground mine at its Derryginagh project in south-west Ireland to produce white barite for the industrial filler market.
The 1Concept Study, carried out by independent consultants Saint Barbara LLP, suggests 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. The study, which was developed with an estimation accuracy of +/-35-40%, includes a financial model for the project which can be updated as further information becomes available.
Based on the results of the study, the Board has committed to carry out a more detailed evaluation of the project and to a drilling programme aimed at the definition of a 2JORC Mineral Resource.
Metallurgical evaluation is on-going at SGS Mineral Services UK Limited in Cornwall on a large sample of barite collected from a recent 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: "This is a very welcome and positive development for the project. The market feedback is that a new source of white barite outside of China, and in particular in Europe, would be keenly supported by European consumers."
Further information:
Sunrise Resources plc Tel: +44 (0) 845 868 4590
Patrick Cheetham, Executive Chairman Mobile: +44 (0)7767 458751
www.sunriseresourcesplc.com
Northland Capital Partners Limited Tel: +44 (0)20 7796 8800
Gavin Burnell/Rod Venables
Charles Vaughan (Broking)
Yellow Jersey PR Limited Tel: +44 (0)7768 537 739
Dominic Barretto
Notes:
1. The Concept Study assumes that sufficient barite can be found to sustain production at study rates and that all barite concentrate produced can be sold as paint grade barite at published prices. There are currently no defined 2JORC Mineral Resources or Ore Reserves at Derryginagh and no guarantee that future exploration will define sufficient Mineral Resources or Ore Reserves to justify development of the project. Metallurgical testwork and marketing studies have not progressed to a stage where the quality and value of the barite is firmly established.
2. 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).
3. 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.
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.