SUNRISE RESOURCES PLC






Sunrise have a significant opportunity on its Barite resource in southern Ireland,where global supply is tightening due to chinese export restriction sunrise could become a major player in the european barite market. Sunrise resources also have an interesting stake in two diamond projects and also a gold project in canada with scope for additional resources of copper / nickel / platinum.


Market Cap - £3.2m

Shares in Issue - 312m

Epic - SRES

Market - AIM


Sunrise Resources plc is a British-led diversified mineral exploration and development specialist.The Company's objective is to develop profitable mining operations to sustain the Company’s wider exploration efforts and create value for shareholders through the discovery of world-class deposits.

The Company is evaluating a product opportunity for white barite in south-west Ireland and has an exploration portfolio including gold and base-metal exploration interests in Canada and diamond exploration interests in Finland and Western Australia.



DERRYGINAGH BARITE PROJECT, IRELAND

Assay Results Due for release end of january 2012:

In May this year, a positive concept study was completed which suggested that a profitable underground mining operation could be developed for at least 50,000 tonnes of barite per year. Metallurgical test work continues with the objective of defining a low cost gravity separation process for the production of high-grade barite. An initial drilling program is also underway to evaluate the resource potential of the barite vein
.
Whilst the barite programme may be relatively small in comparison to original Long Lake expectations, the commodity is increasingly scarce and pricing and demand demographics are strong with supply from China looking particularly squeezed.

As an illustration from a very high level 50,000 tonnes per year would probably generate revenue of over $10m per annum at current prices. Assuming at least 20% margin the project could return operating profits of $2m per annum. Capital expense is likely to be at around $5m and certainly not more than $10m. Thus a five-year project would offer a reasonable payback and a ten-year project an attractive return. We believe if results continue to encourage, this project could underpin the company and provide free cashflow to pursue larger exploration targets.

DIAMOND EXPLORATION, AUSTRALIA AND FINLAND

Projects in Finland are currently on hold but work at the Cue exploration licence in Australia is expected to commence in early 2012. Cue is an interesting project that was originally discovered by De Beers which
recovered 13 diamonds from a small 64kg sample. Unfortunately there is no known data on the size or value of these diamonds.A small and inexpensive drilling programme starting in early 2012 is expected to help define the quality of the Cue’s diamonds.

The exploration licence application (ELA20/727) covers 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.The Cue region was explored by De Beers in the period 1994-2002 during which time De Beers discovered a number of kimberlite dykes in two separate areas within the Company’s application area.At the "Cue 1" locality a kimberlite dyke outcrops and is reported by De Beers to be 2-3 m 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 3 m wide, were encountered in two drill traverses spaced 400m apart.

De Beers described the Cue project kimberlites as olivine macrocrystic hypabyssal kimberlites. It did not report the results of diamond sampling, although some time after the first discovery of the Cue 1 kimberlite De Beers described the area as having "...excellent potential for discovery of kimberlites and diamonds."

De Beers carried out an extensive regional exploration programme in the north-west part of the Yilgarn Craton involving stream sediment sampling, soil sampling, airborne geophysics and drill testing. De Beers last open-file report on the area reported that “….anomalous heavy mineral results from areas that are structurally analogous to the Cue and Soapy Well kimberlites suggest that additional kimberlite intrusions remain to be found.” Sunrise has carried out a preliminary evaluation of these results and included the most anomalous areas within its exploration licence application.

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, the 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 (inferred resource >0.5 million ounces platinum+palladium+gold) the discovery of which was initiated by the current Sunrise Executive Chairman, Patrick Cheetham, when Joint Managing Director of Dragon Mining NL.

The new licence application area has not been held under licence since the De Beers licences expired and their exploration results did not become open file until 2006. Consequently the occurrence of the Cue kimberlites is not widely documented.

The Company has applied for Exploration Licence 20/727 through a new wholly owned subsidiary in Australia – Sunrise Minerals Australia Pty Ltd.

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.

LONG LAKE GOLD PROJECT, CANADA ( plus potential copper / nickel / platinum )

Drilling this year produced mixed results with some early success followed by a disappointing second campaign Near surface mineralisation appears to be limited but Sunrise Resources believes there is still exploration potential down dip of the mineralised pipe. Results thus far have however only uncovered minor gold mineralisation at depth and a detailed structural analysis of the area is required to refine targets. At the E1 prospect, located 350m to the south of the Long Lake Gold Mine, sampling defined a number of high-grade gold intersections but lacked the continuity suggested by geophysical work.

The company is currently evaluating its data in the hope of better delineating the structure. Sunrise has probably spent sufficient capital to honour the next year of its work commitments under the option agreement and its next payment, a modest £75k, is payable in May.

Sunrise Resources is also examining the area for copper and nickel potential on a possible 10km long extension to the Copper Cliff dyke system which hosts a number of large copper-nickel-platinum group metal deposits. Mapping, sampling and geochemical work is required in order to establish the potential for Copper and Nickel and PGM mineralisation.

Executive Chairman – Patrick Cheetham

Mr Cheetham is the founder of the Company. He is a mining geologist with 29 years experience in mineral exploration and 23 years in public company management. Mr Cheetham started his career as an exploration geologist in Australia with Western Mining Corporation and prior to that worked for Imperial Metals Corporation in British Columbia, Canada. From 1986 to 1993 he was joint managing director of Dragon Mining NL, during which time he was responsible for the formation of that company, the identification of and acquisition of its exploration projects, its listing on the Australian Stock Exchange and the subsequent development of its exploration projects. Patrick co-founded Archaean Gold N.L. in 1993 - the subject of a successful $50 million takeover bid by Lachlan Resources NL. He is currently also Chairman of Tertiary Minerals plc.

Northland Capital Report Summary:

http://www.sunriseresourcesplc.com/download/Northland%20Capital%20Reserach%20note%2016%20December%202011.pdf


2011 has been a turbulent year for Sunrise Resources as excitement over initially encouraging Long Lake results gave way to disappointment that the second drilling programme failed to extend the mineralisation encountered in the first programme. However, the prudently run company has a portfolio of assets and has been more successful moving forward its underrated Derryginagh barite project. Derryginagh has the potential to underwrite the business going forward as the company pursues other, possibly, higher impact prospects. Having peaked at 6.7p, shares have since fallen back to 1.05p, a capitalisation of £3.4m. From such a low base there is good scope for future outperformance given progress in any one of the three key projects.

tend to agree with the small co comment above but maybe they are doing otherwise for pure tax reasons - today was a tad red i see but longer term here..............

Shares in Sunrise Resources (SRES) crashed 0.175p to 0.95p after it announced it would not extend its option to purchase the Long Lake gold project in Canada, after tests determined that the project was not commercially viable to pursue. Additionally, the company is experiencing delays at its Cue diamond site in Australia as it awaits a mandatory Aboriginal Heritage Survey to be conducted. There was some positive news as the mineral explorer noted promising results from its Derryginagh barite project in Ireland and the firm will now begin further tests to determine its viability.

If its results from its Derryginagh barite project come good i would like them to spin it off into another company , i think investors would be falling over one another to invest.

Yes, but what matters is how the rest of the World ( Well, AIM-market) for if that's not good, then the sp falls and loans become more difficult . . . another fall today, this isn't looking too clever.
Re "Tax-reasons" - I thought there was a Maxim that said something like: Don't chase tax breaks, chase profit.
Whilst I agree the Barite may come good (er, If they can sell it), the demand is slipping as folks hold-back spending. Furthermore I'm none too keen on brinkmanship, which is almost their position, (hence the sp. ?). It's just not good enough - and no-one has answered the 1m share-sale about 1 year ago . . . why didn't Directors mop up that stock?

EDIT (8May2012)- I'm even wondering (but daren't say) if said Director had been to Canada and didn't like what he saw....thinking it's only a matter of "time" before thsi project is dropped . . . . in which case he made a good call, but then DIRs are supposed to be acting in OUR interests, so he should have fallen on sword and then sold! At least we have a Record of that sale, eh? Something to think-on?

And this company and Silvermere are a pump & dump share by a group of names on this message board.

Sunrise Resources reports increased losses for half year

Yes aldwickk but you seem to love this share so much !

Cutting long lake to advance Derry and Cue was a smart move in my book
and will net rewards imvho.

Ps who are theses P&D merchants ?

Seek and ye shall find

Bob Heston - 19 Jan 2012 11:02 - 8 of 104

Thanks for that minerales

"No major supply outside of china and india"
Jackson55 - 19 Jan 2012 12:01 - 9 of 104

minerales, Thanks for the info mate,had a few cheeky buys here this morning
while its low
Minerales - 19 Jan 2012 13:29 - 10 of 104

jackson55

Sunrise barite play is not only capable of underpinning the company but also
provide funds for their other larger projects,so its base entry here with much
potential upside,the assays from ireland are due for release before end of Jan
so not long to wait.Have been topping up myself today :-)
Jackson55 - 19 Jan 2012 13:41 - 11 of 104

Nice one,think i will be going in big here soon when i free funds up

Can't find the latest garb on this but could somebody tell me have I missed something as it has been a complete dead duck today and just wondering if they have gone t..ts up, suspended or what? Would love to be enlightened as cannot find the most recent of comments on this BB.

Not much on any BB 3m .

There were trades for Friday, may be wrong but none for today 3m ?

Two posts on LSE 3m, no alarm bells ringing.

Sorry DC the sun has either gone to my head or the lack of trading so obviously alarm bells are ringing in my head. Sorry - never mind probably another one bites the dust who knows. Thanks for your concern.

There were only 7 buys/sells on the 24th, 2 on the 25th.

Oh well what hope does that bring, I shall have to learn to do a Gibby and another one bites the dust On U Tube.

Maybe you could get some of your money back buying Tri star resources ?


http://www.moneyam.com/InvestorsRoom/posts.php?tid=15422#lastread

Wonder what the sudden interest is today - a lot of buys?

there was some interest late last month on reaching the bottom and after retracement, yesterday was already doing inroads but today is motoring

There will probably be an announcement later to say that the company sees no reason for the rise in the share price today!!

Quick short them