Cue Project - Diamond Update

 

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: [phone]. Mobile: 
[phone] 
Brett Miller/Gavin Burnell, Astaire Securities plc. Tel: [phone] 
 
 
 
 
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 
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