TIDMSRES
RNS Number : 2216N
Sunrise Resources Plc
24 October 2016
SUNRISE RESOURCES PLC
("Sunrise" or the "Company")
24 October 2016
Bay State Silver Project - Phase 2 Drill Results
Sunrise Resources plc (ticker symbol 'SRES'), the AIM-traded
diversified mineral exploration and development company ("the
Company"), is pleased to announce results of the second phase of
drilling at its Bay State Silver Project in Nevada together with
the results of a small programme of underground sampling, both
targeting extensions of the Chihuahua Vein system south of Mining
Canyon.
HIGHLIGHTS:
-- Shallow underground (near surface) samples:
Ø 0.33m grading 85 grammes/tonne silver (2.48 ounces/ton).
Ø 0.76m grading 399 grammes/tonne silver (11.64 ounces/ton).
Ø 0.91m grading 480 grammes/tonne silver (14.00 ounces/ton).
-- Three holes completed in Phase 2 drilling:
Ø Hole 16SRRC004 - Located Chihuahua Vein system at c.300m below
surface.
Ø Hole 16SRRC005 - Interpreted to have stopped short of
Chihuahua Vein.
Ø Hole 16SRRC006 - Lincoln Vein system not intersected.
Commenting today, Executive Chairman Patrick Cheetham said:
"This most recent underground sampling confirms the high grade of
material left behind in the Chihuahua Vein by the old timers in the
area south of Mining Canyon and, pleasingly, the drill programme
has demonstrated that the Chihuahua vein system is present at 300m
from surface, a substantial depth below both the level of all
historical workings and the lowest level of previous drilling. I am
also pleased to confirm that the vein system is silver-bearing at
that depth. The drill programme presented a number of technical
challenges and whilst these were largely resolved during the
programme they have nevertheless impacted the results.
Notwithstanding these frustrations, Bay State remains a priority
target amongst our diverse exploration portfolio."
Further information:
Sunrise Resources plc
Patrick Cheetham, Executive Chairman Tel: +44 (0)1625 838 884
Northland Capital Partners Limited
Nominated Adviser & Broker
Edward Hutton/David Hignell
John Howes/Rob Rees Tel: +44 (0)20 3861 6625
Beaufort Securities Limited
Joint Broker
Jon Belliss Tel: +44 (0)20 7382 8300
Further information on the Bay State Silver Project, including
maps, photos, previous drilling results and an underground video
tour of the Chihuahua Adit are available on the Bay State Project
page of the Company's website:
http://www.sunriseresourcesplc.com/projects/bay-state-silver-project
Cross and Long sections for the drill holes now being reported
will be added to this page in the near future.
The Company presentation on the website will also be updated to
illustrate the results of the Phase 2 drill programme and to
include projects acquired by the Company's new 100% owned
subsidiary, Westgold Inc.
Detailed Information
Introduction
The Phase 2 drill programme was designed to follow up the
positive results from Phase 1 drilling where high-grade silver
mineralisation was intersected in all three drill holes drilled
north of Mining Canyon (1,460g/t silver over 0.2m; 566g/t silver
over 0.5m & 503g/t silver over 1.4m - for further details see
news release dated 22 October 2015).
Two holes were planned to test the Chihuahua Vein system to the
south of Mining Canyon along strike from Phase 1 drilling and
beneath the deepest levels of the historical mine workings which
last produced high-grade silver ore in the late 19th and early 20th
centuries. A third hole was designed as a relatively shallow test
of the parallel Lincoln Vein system.
North of Mining Canyon the topography allowed the Phase 1 drill
holes to be positioned on the hanging wall side of the Chihuahua
Vein so holes could be drilled towards (and almost perpendicular
to) the dip of the vein system to maximize the chance of an optimal
intersection of the vein.
In contrast the topography south of Mine Canyon does not permit
easy access to drill from the hanging wall and so Phase 2 drilling
was carried out from drill sites in the footwall of the vein. When
drilling a dipping vein from its footwall the vein is dipping away
from the drill and the hole must be drilled at an angle shallower
than the dip of the vein in order to intersect it. The success of
drilling from the footwall can be adversely affected by changes to
the dip of the vein or drill hole deviation.
Phase 2 was completed using the reverse circulation percussion
drilling method which is typically 50-70% cheaper than the diamond
drilling used in the Phase 1. Percussion drilling uses a hammering
action to break the rock and samples are recovered as rock powder
and chips up to, typically, 0.5-1cm in size and are collected over
1.52m (5ft) or 0.76m (2.5ft) intervals. Geological information is
limited and mineralisation is often hard to recognize in the
field.
Underground Sampling.
Prior to the Phase 2 drilling programme a small programme of
sampling was undertaken in shallow underground workings immediately
south of Mining Canyon. These workings are located on the Chihuahua
Vein up-dip and on section of the first planned drill hole,
16SRRC004. Three chip samples of material taken across the exposed
mineralisation at places along an accessible 30m long (approx.)
section of the vein system returned:
Ø 0.33m grading 85 grammes/tonne silver (2.48 ounces/ton).
Ø 0.76m grading 399 grammes/tonne silver (11.64 ounces/ton).
Ø 0.91m grading 480 grammes/tonne silver (14.00 ounces/ton).
Drill Programme Details
HOLE 16SRRC004
The first hole in this programme targeted the Chihuahua Vein at
a downhole depth of 175m and a depth of 185m below surface. The
hole was angled at -55 degrees at the start and was collared in the
footwall of the vein system and drilled towards the projection of
the Chihuahua Vein which was predicted to be dipping away from the
drill hole at an angle of approximately 85 degrees.
A down-hole survey close to the target depth showed the drill
hole had deviated (steepened) significantly away from the vein and
so the hole was continued to a much greater depth than originally
planned. 3D modelling of the projected vein system and a second
down-hole survey completed near the end of the hole showed that by
280m it had steepened to the point where it was running parallel to
the edge of the projected vein system, within just a few metres
from it in the footwall, but that by the end of the hole at 365m
down hole depth it was diverging away from the vein.
The Company's interpretation of the data is that the hole did
not penetrate the vein system, but skimmed the edge before dipping
away from it towards the end of the hole.
Narrow selvedges of vein material were recovered in the hole and
the best analytical result was 0.76m grading 52 grammes/tonne
silver (1.49 ounces/ton) from 333m down hole. This grade cannot be
considered as representative of the vein as a whole and typically
the highest grades of silver are contained within sharply defined
zones in the central parts of the vein which do not appear to have
been cut in this hole.
The vein edge, as it is now interpreted, was located exactly as
projected based on the hole survey and whilst the hole failed to
penetrate the full thickness of the vein as planned, it has a
positive outcome in demonstrating a much deeper continuation of the
vein than was originally envisaged and that at 300m below surface
the vein is still silver bearing.
HOLE 16SRRC005
This hole was originally planned to test the Chihuahua Vein some
114m southeast along strike from Hole16SRRC004 and at a downhole
depth of 225m and 293m below surface.
Following the survey of hole 16SRRC004 it was clear that if the
second hole deviated at the same rate then the projected position
of the vein would never be reached. A field decision was made to
drill the second hole in the programme from the same position as
16SRRC004 and on the same azimuth but at a shallower angle in order
to get a compete intersection of the vein. In addition, a new,
proprietary, deviation compensating drill tool was trialled in this
hole.
In its new position this hole was predicted to intersect the
Chihuahua Vein at a down hole depth of 135m, 137m below the surface
workings that returned the high values reported above, and some
209m vertically above the point where skimmed in hole
16SRRC004.
The new tooling system worked well and hole deviation was not
material. However, no significant analytical results were obtained
and the vein system does not appear to have been intersected. As
the vein was projected to this position both from above and below
it seems likely that the vein is displaced at this point by
faulting and that the hole did not reach the vein.
HOLE 16SRRC006
This hole was drilled as a first test of the Lincoln Vein which
runs semi-parallel to the Chihuahua Vein on its SW side, and which
had been interpreted to dip at about 75 degrees toward the
Chihuahua Vein. The Lincoln Vein system has only been worked from
outcrop and in shallow workings.
Hole 16SRRC006 was sited to intersect the vein at 100m below
surface and at a down-hole depth of 90m. The hole was terminated at
a depth of 123m and the down-hole survey showed only minor
deviation.
No significant analytical results were obtained. Further mapping
and sampling of the Lincoln Vein system is required before further
drilling on this target can be considered.
Notes:
1. This announcement contains inside information for the
purposes of Article 7 of Regulation (EU) 596/2014 of the European
Parliament and of the Council.
2. The information in this release has been compiled and
reviewed by Mr. Patrick Cheetham (MIMMM, MAusIMM) who is a
qualified person for the purposes of the AIM Note for Mining and
Oil & Gas Companies. Mr. Cheetham is a Member of the Institute
of Materials, Minerals & Mining and also a member of the
Australasian Institute of Mining & Metallurgy.
3. Sample analysis. Drill samples being reported were prepared
and analysed by independent laboratory Bureau Veritas in Reno and
Vancouver using a four acid digest and ICP-ES/MS analysis (Method
Code MA270 ). QA/QC methods included the collection of field
duplicates and the laboratory's own QA/QC included the insertion of
pulp duplicates, analytical replicates, blanks and known value
standards into the assay sequence.
Notes to Editors:
About Sunrise Resources plc
Sunrise Resources plc is an AIM-traded diversified mineral
exploration and development company. 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 exploring a number of precious metal, base metal
and industrial mineral projects in Nevada, USA. The Company holds a
royalty interest from EP Minerals in a diatomite project in Nevada
and holds a white barite project in South-West Ireland. The Company
also holds diamond and gold exploration interests in Western
Australia.
Shares in the Company trade on AIM. EPIC: "SRES"
Website: www.sunriseresourcesplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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