Cue Project - Diamond Update
November 04 2009 - 6:12AM
UK Regulatory
TIDMSDS
RNS Number : 9302B
Sunrise Diamonds PLC
04 November 2009
Sunrise
Diamonds PLC
www.sunrisediamonds.com
4 November 2009
LATEST REPORT CONFIRMS CUE KIMBERLITES ARE DIAMONDIFEROUS
* Newly Released Report Provides Information On Diamond Sampling Of Soapy Well
Kimberlite
* Additional Work Defined Multiple Kimberlite Drill Targets In Area Along Strike
From Cue 1 And In New Area Of Kimberlite Float
__________________________________________________________________________
Further to its announcement of 29 October, Sunrise Diamonds plc ("Sunrise" or
"the Company") is pleased to announce that newly released information confirms
that the Cue 1 and Soapy Well kimberlites, on the Company's new licence
application area in Western Australia, are diamondiferous.
In a 2001 report, previously retained as confidential, but released to open-file
yesterday by the Geological Survey of Western Australia following enquiries by
the Company, De Beers reported positive diamond sampling results from the main
kimberlite dyke at Soapy Well. De Beers also reported positive results from
follow-up exploration at two separate additional kimberlite targets within the
Company's new licence application area.
According to De Beers, 13 diamonds were recovered for a total weight of 0.00379
carats from a 64kg sample of kimberlite taken from drill-core at Soapy
Well. Whilst not providing any information on sampling of the Cue No.1
kimberlite the report states that "two diamondiferous dykes, Cue 1 and Soapy
Well 1, have been discovered so far".
The recently released report also provides details of further soil sampling and
ground geophysics which identified multiple drill targets for kimberlite at
Fennels Well, 2.5km along strike from the Cue No 1 kimberlite and in a separate
area close to the Cue I kimberlite where a new area of kimberlite rock
debris was found.
Commenting today, Patrick Cheetham, Chairman of Sunrise said "These newly
released results validates our belief that something of real interest was found
by De Beers and our belief that their decision not to continue at Cue was more
due to a change in strategy rather than the results of their exploration."
Further information - see background information below or contact;:
Patrick Cheetham, Sunrise Diamonds plc. Tel: +44 (0)1625-505947. Mobile:
+44(0)7767 458751
Brett Miller/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.
The Company has applied for exploration licence (ELA20/727) covering an area of
approximately 70 square km and is located 70km to the north-west of the town of
Cue in the Murchison Mineral Field in the Yilgarn Craton of Western Australia.
At the "Cue 1" locality a kimberlite dyke outcrops and is reported by De Beers
to be 2-3m wide. Several drill holes intersected the dyke and one vertical hole
intersected kimberlite from surface to 60m depth. At Soapy Well, 7km to the
west, at least three closely spaced kimberlite dykes, up to 3m wide, were
encountered in two drill traverses spaced 400m apart.
Also of interest within the licence area is a sulphide-bearing gabbro dyke that
was intersected in several drill holes by De Beers prior to the discovery of the
Cue 1 kimberlite. Although not of interest to De Beers for diamond exploration,
this gabbro dyke is now targeted by Sunrise for PGM's and gold. It is located in
the same region as the Weld Range PGM deposit (reported Inferred Resource >0.5
million ounces platinum+palladium+gold) the discovery of which was initiated by
Sunrise Executive Chairman, Patrick Cheetham, when Joint Managing Director of
Dragon Mining NL.
The De Beers exploration licences in this area expired in 2001, shortly after De
Beers failed to secure the takeover of Ashton Mining and its interest in the
Argyle Diamond Mine in Australia and shortly after that De Beers ceased all
exploration in Australia. De Beers' expenditure in the immediate area of the
Company's licence application area exceeded Aus$1 million.
A map showing the location of ELA20/727is available on the Company's website
under the "Projects" Tab (Cue Project).
The Cue project is the first of a number of new projects planned by the Company
to broaden its geographical base and widen its commodity interests which,
to-date, have been focused on diamond exploration in Finland.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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