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.

minerales that was a great post,am starting to get a good feeling about this

jackson55

Thanks for that but there is a fair bit of general info around and i suggest some
obvious clues we about to get a few nice suprises.We are not heading back to
7p just yet but with anticipated newsflow it could easily move to 2.5p + within
a short time.At around 1p to buy at moment the term "opportunity" can be used
for sure.

To give you an idea,of the facts made available they have said the barite play
could produce a minimum 50.000 tonnes per year for 20 years,at $10m a year
revenue that makes $200m over the mine life,and all this at a modest cost to
sunrise.

This is the company,s junior project but the one that will bring the cash
in the quickest and give them a great platform to monitise CUE and other
projects without major dilution..i think the market and investors will like this.

Just seen a trade go through at 1.195p

spread is 0.95 - 1.1p, quoting me to 1.185p to buy and thats just on £232's worth

morning chaps

Buy above ask at open @ 1.195p and not able to get quote for over 100k at moment

Looks like its about to start moving up and not much stock around, i still think
there were some big buys yesterday not published yet.

Just saw a 250k buy at full ask go through and ticked up 1p-1.10p

Up 12% this am.

Some good trades starting to show up now and starting to move

Looks like they fast approaching the 1.3 Gibby!

Could have a exciting few weeks ahead here IMO

Surging away up to 11.00 am then the tide turned with a bit of profit taking seems to be evens at the moment.I have stored away some more as at this price it would be rude not to!!

beebusy

Sunrise look to have a busy month of news ahead so lots more excitement to
come im sure,this is not really on the radar yet but think it may be soon.

bb yep 1.3 :-))

:-)))))))))))))))))))

First kercccccccccccccchhhhhhhhhiiiiiiiiiiiiiinnnnnnnnnnnnnggggggggggg in eons, up over 50%.

glad to hear it bb!! remember what i said about your investments - they will all probably come good in time - well one down - loads more to go - good to see you kerrrrrrrrrrrrrrrrrrrrrrrchinnnnnnnnnnnnnngggggggggggggggggggggggING LOL!! pass the good news to mrs bb - better still keep quiet about it ; lol!! that way she wont know and you can still cancel her holiday saving wads!! only joking of course - dont tell her i said that either!!

Thanks Gibby,as you say something had to give and I thought it would be me,funny enough that Atlantic global which i have hung onto has suddenly shot up this morning..POl...up ECR....UP Damn I cannot cope with this!!! Lol

By the way Gibby was told to look out for TPJ, had a look at the sheet did not send my pulse up, am I missing something??

bb - i'll have a pint of what you are drinking - its good to see that you are now drunk on success :-))) i understand how you feel having to cope with this constant success - get the same everyday myself LOL LOL joshing of course TPJ - yep prospects there looked at it before but not in there currently myself but never say never - last i knew they were in the middle of a court case and since then volumes been relatively low which can cause a swing on the sp quite dramatically easily - probably take another look soon - seem to remember drilling not far off
dont forget - nothing to mrs bb on your successes!! :-)))
hang on - whos that lady outside hammering on my door looking rather annoyed............clutching a cancelled holiday booking in her clenched fist?? lol!!!