19th May 2014 13:16
LONDON (Alliance News) - Sunrise Resources PLC Monday said it significantly narrowed its losses in the first half of its financial year compared to a year earlier, a time when it booked a hefty impairment of deferred exploration costs.
The diversified mineral exploration and development company said it started the financial year with a higher level of exploration activity, in contrast to the same period last year, and renewed optimism for the future.
Sunrise reported a loss of GBP156,479 for the six months to March 31, significantly smaller than the GBP748,949 loss it reported a year earlier, when it booked a GBP562,793 impairment of deferred explorations costs. However, Sunrise reported a significant increase in pre-licence exploration costs during the period of GBP17,021, compared with only GBP3,283 the prior year. It said the rest of its losses for the first-half comprised of GBP140,112 in administration costs and interest income of GBP654.
Last week, Sunrise reported positive results from an initial independent assessment of diatomite samples from its 100% owned County Line Diatomite Project in the US state of Nevada. It said the results showed promise for commercial products and that the assessment firm has recommended further work to include mapping, trenching and drilling at the site.
In April, the group completed its drilling programme at the Cue Diamond Project in western Australia and found a narrow kimberlite region. It said the drilling was completed on budget at all of its targets, and it achieved its objective to drill the Soapy Bore kimberlite on site.
Sunrise Resources said most drill holes tested targets in a weathered zone, where weathered kimberlite is not easily distinguished from host rocks without further testing.
The company raised GBP525,000 before expenses earlier this year via a placing of new shares with warrants to existing shareholders and a new institutional shareholder. The directors continue to invest in the company, both in the recent placing and by continuing to take fees in shares, it said.
"We expect that this investment will be rewarded as market sentiment improves. Certainly investor sentiment for diamond companies appears to have turned a corner with an increasing recognition that there is a supply shortfall looming after years of under investment in exploration and new mine development," the company said in a statement.
Shares in Sunrise Resources were down 1.2% at 0.420 pence per share Monday afternoon.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Sunrise Res