RELEASED ON
BEHALF OF:
JANUARY 14, 2008
GOOD PROGRESS MADE BY SUNRISE IN SECOND FULL
YEAR
OF DIAMOND EXPLORATION IN FINLAND
�
Geophysical Component Of BHP Billiton Database Flags Numerous Targets
�
Active Drilling Programme Scheduled For Winter Months
�
Longer-Term Upward Trend In Diamond Prices Expected To Continue
In
its second full year of exploration in the diamond-prospective Karelian Craton
of Finland, AIM-quoted Sunrise Diamonds made significant progress, says
chairman, Mr Patrick Cheetham in his statement for the year ended September
2007. “We have scheduled an active winter drilling programme, and I look
forward to reporting further progress during 2008 towards our objective of
discovering economic diamond deposits”, he adds.
Through
joint ventures and its own exploration success, Sunrise has developed a
portfolio that includes advanced projects where the commercial potential of
several diamondiferous kimberlites is being evaluated, and a large number of
early stage projects having potential to host new diamond discoveries.
The
company continues to benefit from its exclusive rights to BHP Billiton’s
diamond exploration database for Finland that includes valuable country-wide
geochemical and geophysical data.
Initial work largely focused on the extensive geochemical till database
in this package, but during 2007, Sunrise made significant progress with the
geophysical database, applying interpretation techniques and computing power
not available when the data was originally collected and last interpreted. As a result, numerous targets have been
generated.
The
company is earning from Canada’a Nordic Diamonds up to a 75p.c. interest in a
parcel of claims in the Kaavi-Kuopio area of south-central Finland which cover
the majority of the 20 kimberlites discovered by Ashton Mining in the 1990s.
Three
of the known kimberlite bodies on these claims have diamond grades of 15-26
carats per hundred tonnes. Individually they may be too small for development,
states Sunrise, but they may have commercial potential to provide feed for a
central processing plant in the Kaavi-Kuopio region. Work in 2007 focussed on evaluating other known
diamondiferous kimberlites which could help justify such a decision, the
company adds.
Three
further kimberlites were drill tested towards the year end, and samples are
currently being evaluated in South Africa for their diamond content.
The
Nordic claims also include numerous untested targets such as Target 295 where
Sunrise has narrowed the potential source areas for the kimberlite fragments
and micro-diamonds discovered last year.
“The source remains tantalisingly close but, so far, elusive”, states Mr
Cheetham.
Regional
exploration has continued “at a fast pace”, with work on a number of separate
target areas , most of which were generated by the BHP Billiton geochemical
database where kimberlite indicator mineral anomalies have been found in the past but not followed up.
A
particular focus has been Target 298 (100p.c. Sunrise) where Sunrise is seeking
the likely source of large numbers of diamond-bearing boulders were discovered
during the year.
Summarising the
current diamond market conditions, Sunrise says growth in demand for diamonds
is expected to be sustained in the medium term, whilst production is likely to
remain flat or in decline with no major new diamond mine developments imminent.
The supply shortfall is seen as likely to grow in the next few years and prices
for all sizes and qualities of diamonds are expected to continue their longer
term upward trend.
Sunrise
reported a loss of �212,621 for the year compared with a re-stated loss of
�181,154 in 2005-06.
Click
here for full text of Stock Exchange statement
Further Information:
Patrick
Cheetham, Sunrise Diamonds plc. Tel: +44 (0)1625-505947. Mobile: +44
(0)7767-458751
John Greenhalgh/Ron Marshman, City of London PR
Ltd. Tel: +44 ( 0)20-7628-5518
http://www.sunrisediamonds.com
Sunrise
Diamonds Share Price