Last checked at 21 Apr 2010 07:00
www.sunrisediamonds.com
21 April 2010
DERRYGINAGH BARITE PROJECT
RESULTS OF INITIAL METALLURGICAL TESTWORK POSITIVE FOR PRODUCTION OF HIGH VALUE FILLER-GRADE BARITE
·; High-grade barite concentrate produced by simple gravity separation
·; Initial colour testing results favourable for high-value filler grades
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Sunrise Diamonds plc ("Sunrise" or "the Company") is pleased to announce that it has received positive results from a preliminary programme of metallurgical testwork and colour testing of barite concentrate from the past-producing Derryginagh mine in Ireland.
The Company is targeting the Derryginagh barite deposit for the production of high-value white barite for use as a mineral filler in paints and plastics. Barite is the mineral form of barium sulphate.
Following the grant of an exploration licence at Derryginagh, in November last year, the Company has moved quickly to evaluate the commercial potential of the project. The initial testwork was carried out by SGS Mineral Services in Cornwall on two vein barite samples hand picked from the surface waste dumps. The tests included a simple gravity separation test which produced a very high-grade barite concentrate that exceeds the required chemical specification for the purest and highest value white filler grades of barite. Colour testing, carried out by an existing buyer of filler grade barite, was also favourable.
The next stage of work will be to access the dry upper levels of the old mine workings to collect larger representative samples for more detailed testwork. It is intended that the results of this further testwork will allow for the design of a low cost plant for the production of saleable barite concentrate.
Commenting today, the Chairman of Sunrise Mr Patrick Cheetham said "This is an excellent result. Our concept for Derryginagh is for a modest-sized underground mining operation feeding a low cost gravity separation plant producing high-value product. We believe that such an operation can be set up at a relatively low capital cost and produce valuable cash flow for the Company."
For further information see Background information below, or contact:
Patrick Cheetham, Sunrise Diamonds plc. Tel: +44 (0)1625-505947. Mobile: +44(0)7767 458751
Gavin Burnell, Astaire Securities plc. Tel: +44(0)20 7448 4400
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.
Background Information
Barite or barites (syn. baryte or barytes) 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 a higher value industrial filler in, for example, paints, 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 1970s the mine workings were de-watered and mapped by a local company and in the 1980s four holes were drilled to intersect the barite vein at 100 meters below surface by Dresser Minerals International Inc., which was then a major supplier of drilling-mud grade barite around the world.
All four Dresser holes intersected white barite over an average width of 2.4m 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.