Sunrise shares down after probable low-diamond grade found

Shares in AIM-listed mineral mining company Sunrise Resources fell sharply on Monday after a 'probable low diamond grade' was identified in at the company's kimberlite tests in Western Australia.

The company unveiled the results from its review of diamond sampling and mineralogical data from surface and drill samples of the Cue 1 kimberlite, the first kimberlite to be tested on the company's Cue diamond project in Western Ausralia.

Macrodiamond grade modelling was carried out on combined drill sample results, individual drill samples and various sample groupings to evaluate variability in the sameple results.

Sunrise Resources stated: "The results of the modelling indicated that, whilst small diamonds are present in significant quantities, the diamond population is fine-grained and macrodiamonds are likely to be scarce."

The company further disclosed that the modelled macrodiamond grade for all sample groups was less than two carats per hundred tonnes.

Patrick Cheetham, Executive Chairman of Sunrise Resources, commented: "The results being presented today are necessarily technical and whilst it is disappointing that the first kimberlite we have tested has a probable low diamond grade, the results for this body do not downgrade the overall prospectivity of the property.

"Informed commentators will appreciate the significance of the Mantle MapperTM information which suggests that there is potential for other kimberlites occurring in the same area to contain significant quantities of diamond. It is still early days in our exploration programme and new kimberlite occurrences continue to be found."

Sunrise Resources' share price was down 17.24% to 0.60p at 09:12 on Monday.

MF