12th Aug 2014 08:14
LONDON (Alliance News) - Sunrise Resources PLC saw its shares drop heavily in early trade on Tuesday after it said diamond size distribution from its Soapy Bore kimberlite site at the Cue Diamond Project in Western Australia were less favourable than the Target 5 samples.
Sunrise shares fell 20% to 0.34 pence in early trade, putting it comfortably top of the fallers on AIM.
The group said that all kimberlite samples from the Cue Diamond Project are diamondiferous, and said it recovered 227 diamonds from 272kg of kimberlite processed, coming out at 0.83 stones per kg.
But it conceded the size distribution of the recovered diamonds was lower than the float samples from the high priority Target 5, though it said further evaluation will be required, in particular on the impact of stone breakage at Soapy Bore.
Sunrise said the kimberlite from Soapy Bore is silicified, meaning the potential for breakage is increased, a development which has implications for the projection of diamond grade and which will require further evaluation. As a result, the group will defer further processing of the kimberlite drill sample from Soapy Bore until advice on the issue is obtained.
"The size distribution of the recovered diamonds from Soapy Bore is less favourable than that obtained from float samples at high priority Target 5, but firm conclusions cannot be drawn until the effect of stone breakage at Soapy Bore is carefully evaluated," said Sunrise Executive Chairman Patrick Cheetham.
Sunrise also briefly said it has won an exploration licence for the Corona Gold Project in Western Australia.
By Sam Unsted; [email protected]; @SamUAtAlliance
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