Last checked at 26 Apr 2012 07:00
26 April 2012
SUNRISE RESOURCES PLC
("Sunrise" or "the Company")
PROJECT UPDATES
Sunrise Resources plc, the diversified mineral exploration and development specialist, wishes to provide the following project updates.
The Company's objective is to develop profitable mining operations to sustain the Company's wider exploration efforts and create value for shareholders through the discovery of world-class deposits. It is evaluating a product opportunity for white barite in south-west Ireland and is exploring for diamonds in Western Australia.
Derryginagh Barite Project, Ireland
Following the receipt of drilling results announced in February, the Company is pleased to report that it has completed a review of the drill data and together with its consultant, Aurum Exploration Services, has constructed a 3D geological model of the Derryginagh barite vein system based on the recent drilling results as well as on past drilling results and old mine plans.
As a result of the geological modelling, the Company is satisfied that its internal estimates of tonnage and grade potential are sufficient to justify a preliminary economic evaluation of the project (scoping study).
Consultants have been selected to tender for the scoping study, which is expected to be awarded in the near future.
Cue Diamond Project, Australia
The Company is also pleased to report that field work has now started on the Cue project in preparation for drilling of the Cue 1 and Soapy Bore kimberlites.
The work is being undertaken by Perth based company Terra Search Pty Ltd and will include laying out of drill sites and drill access routes, surface sampling of the Cue kimberlites, orientation geochemical sampling of known kimberlites and field evaluation and sampling of additional targets identified by the Company.
Before drilling can start, an Aboriginal Heritage Survey needs to be carried out. This is an established procedure in Australia where most of the land is subject to one or more Aboriginal Native Title Claims. Whilst the Company's Heritage Agreement requires this survey to be carried out by the Aboriginal Land Council (acting on behalf of the Claimants) the survey has so far been delayed by changes to this responsibility instigated by the Claimants. This situation is in the process of being resolved and it is anticipated that the survey can be completed soon. This will clear the way for drill testing of the Cue kimberlites aimed at a preliminary evaluation of diamond content and quality.
Long Lake Project, Canada
The Company has given notice to the project claim owner that it will not be electing to extend its option to purchase the project. The option agreement will therefore terminate and no further option payments will be made.
The Company has taken this decision after further evaluation of the results of work carried out over the past two years and in order to focus expenditure on the Company's Derryginagh and Cue projects.
The Company considers that its work programmes have adequately tested for extensions to the gold mineralisation previously mined at Long Lake. Whilst there is potential for nickel-copper and PGM mineralisation to be discovered on the western side of the claim block, this requires a more grass roots exploration programme and targets are not sufficiently advanced to justify the option payments becoming due in May this year, or the accelerated exploration expenditures that would be necessary to justify exercise of the option when due in May 2013.
Further information:
Sunrise Resources plc Tel: +44 (0) 845 868 4590
Patrick Cheetham, Executive Chairman
Northland Capital Partners Limited Tel: +44 (0)20 7796 8800
Gavin Burnell / Rod Venables
Alice Lane / John-Henry Wicks (Broking)
Yellow Jersey PR Limited Tel: +44 (0)7768 537 739
Dominic Barretto
For further information: www.sunriseresourcesplc.com
Other Notes:
Reference to dates or timetables for exploration programmes and the receipt of results are based on the Company's expectations held at the date of this release. Such timetables often depend on outside contractors, weather conditions and permitting issues beyond the Company's control and are therefore subject to change.
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.