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.

Have just about broke even again having left them to fester or grow back in August. Seems to be some life left in them yet?!

Had a look this morning and could have got out making £123 but didn't, hope I have made the right choice - News from Derry supposed to be coming out soon. hmmmmmm!! GL

I am perverse, they still owe me £26 !! so will leave them alone but I have to say the £123 sounds like an exit to me??I have gradually sold off my portfollio leaving just the dross which makes grim reading but if and when any make good I will despose of them.I have lost all confidence in shares and banks and have been falling back on long term bricks and mortar in the belief that people have to live somewhere and its a growing population.Simple and probably wrong but just about sums up my investments to date!!

Diamonds without inclusions is a raratity, anyone agree?????

hi bb - hope you are well - always good to consider options

while this is spiking a bit advice to anyone who can get out at a reasonable profit or b/e sell - will slide back soon enough then another long wait
gla

I have taken your advice gibby and sold, I do hope you are right and it doesn't rocket. Made £161.78 better than a kick in the teeth and better than loosing or waiting. gl to the remaining holders.

Didn't I know they would go up after I sold, I promised myself to hang on until the 30th, they have gone for now and see what happens next. Ugh! I can't seem to get anything right. One should follows ones own instincts. gla

3 monkies - why follow the advice of an annonymous poster on here?

Heaven knows chuckles, I have done nothing but kick myself since and am not chuckling one but. It all has to be good what with inclusionless stones and the other news due - I suppose I momentarily panicked and then I realised that may be the City wants these and hence the (de-ramp that they will slide back soon enough). Too late now. He/she has probably got a shed load of these. Hope you do well.

Hi Gibby good advice as usual looking at todays prices,I have been abroad and have left them to fester. 3 monkies can now buy the stock back if the panic has not subsided, me I would spend it on a good meal !!!

May I say Gibby was right, 7 days later. It was my own fault for not waiting another day before I sold them whilst they were on a roll - on reflection he/she did say ''whilst this is spiking". I will hold my hands up to that one but when one could have doubled their investment within 24hrs of selling it was a little hard to bear however sorry you have to wait even longer now bebussy but I am sure it will come right - a few weeks to go and then who knows. Not for me at the moment - did treat myself to a good meal by the way!!!!!!! GL

Glad you got out in time 3m. Well done.

Cheers DC - one never knows what to do anymore, I hope you made a little on Next and you are doing well on many at the moment. Wand seems wonderous for you and I am so pleased. Shame you don't know what a suit is???? hahahaha!!!!

That extra day could have gone the other way and you lost all your profit. Ive looked back on some of my sells and you could say I sold to early, but with the big word profit. That extra day with news you did not want to hear or profit taking will cost you dear. Well done. :-))

Sorry it should have been wondrous instead of wonderous. Good luck anyway. Don't want to be picked up on my spellings as well as everything else.

Lets hope some of your other shares come well .

Many lost causes yet as we know - only 74% down in all but what the hell - we could be in America or in a Hospice/Mortuary or wherever at least we are still alive and have the ability to have Banter. I am becomming more Delia Smith instead of Percy Thrower since the clocks changed. GL and Good Night.

We could be in America - lol yes Florida with sunshine. Dont burn the cooking lol.

Yep! count your blessings, If that magic crystal ball was still available we would all do well but if any of the cr-p that I hold ever gets any where near the green it will be toast.My biggest book loss is ECR which is worth about 30% of its purchase price.No use crying about it, if you get in expecting to make a mint without tears you are in La La land.But it was fun.

guys well done who took advice and got out while the going was good - good to see the regulars in here winning - this is back on my watch list for now - atb and have a great evening all