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From: Nigel
ArtDate: 7th December 2006
Section: (FILLYABOOTS NEWS RELEASES)
Remote Name: 87.74.94.221
Date: 16/12/06
Time: 10:16
7th December 2006
Sunrise Diamonds - News Update
News Item - Fillyaboots Direct from Company
ANNOUNCEMENT OF AUDITED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2006
Chairman’s Statement
I am pleased to report on a year of substantial progress towards the discovery of commercial diamond deposits on our exploration properties in Finland.
New Discoveries
The Company is exploring in the Karelian Craton, a diamond-prospective geological block that on the Russian side of the Finnish border contains some of the world’s richest diamond deposits including the Lomonosov pipe complex at Arkhangelsk now under development by Alrosa.
There is potential for similar types of deposits in the Finnish part of the Craton and consequently a determined target generation and follow-up exploration programme is being conducted on the back of our valuable BHP Billiton database.
As reported, we have achieved early successes in our diamond search where normally patience is a necessary ingredient. You may recall in my Chairman’s Statement last year I mentioned previous exploration in the Kuusamo region of northern Finland defined a new kimberlite cluster and I forecast that more kimberlite discoveries would be made in the Kuusamo cluster.
I am therefore delighted to report that our exploration this year has added a further three new kimberlite discoveries bringing the total number at Kuusamo to seven. Three of these kimberlites are now known to be diamondiferous.
BHP Billiton Database
During the year we have built on our exclusive agreement with BHP Billiton to exploit their diamond exploration database for Finland. The database, which we believe has a replacement value of over US$10 million, includes an extensive archive of surface geochemical sampling results from throughout Finland as well as extensive geophysical data and information on the mineral chemistry of the country’s known kimberlites.
A complete review of the BHP Billiton database has generated numerous targets which are now being followed up with detailed fieldwork. These include kimberlite pebbles from Target 298 with a high micro-diamond count and which are abundant near surface in conjunction with a high interest indicator mineral anomaly.
Nordic Diamonds JV
During the year we entered into a joint venture agreement with Canada’s Nordic Diamonds Ltd (“Nordic”) which gives us the right to earn up to a 75% interest in a parcel of claims covering 16 of the 20 kimberlites that were discovered by Ashton Mining and its partners in the 1990’s in the Kaavi-Kuopio area of south central Finland. Most of these kimberlites are diamondiferous and one or more may have commercial potential. The claims also include untested diamond targets – for example, Target 295 where our recent exploration has confirmed earlier reports of kimberlite fragments and associated high interest kimberlite indicator minerals. The recent recovery of a micro-diamond in the glacial sediment at this location taken together with the favourable chemistry of the indicator minerals suggests a significant diamond source nearby.
Diamond Market
The outlook for the diamond market continues to be positive with fine large gems increasing in price on the back of high demand and short supply. Low value stones have, on the other hand seen a slight reduction in price more recently following a period of larger than average sales by De Beers last year. However, the outlook is for prices to increase across the range as world diamond supply first levels off, then declines against increasing world demand.
Results for the Period The Company is reporting a loss of £179,209 for the year ending 30 September 2006 (2005: £239,092). This comprises interest receipts of £14,254, administration expenses of £171,250 and reconnaissance expenses of £22,213.
Enviable Landholding, Database And Targets
The Company has, in a short time, positioned itself as the leading diamond exploration company operating in Finland with an enviable landholding and a substantial inventory of targets developed from a proprietary diamond exploration database that is the most comprehensive in use in Finland today.
Diamonds are always hard to find, but commercial diamond discoveries deliver superior returns to shareholders compared to discoveries of other commodities.
The Company is in an exciting phase of its development and I look forward to reporting further progress over the coming year.
Patrick L. Cheetham 7 December 2006 Executive Chairman
Further Information: Patrick Cheetham Sunrise Diamonds plc. Tel: +44 (0)1625-505947.
Ron Marshman/John Greenhalgh City of London PR Ltd. Tel: +44 (0)20-7628-5518
Web-site: www.sunrisediamonds.com
SUNRISE IN ‘EXCITING PHASE’ TOWARDS DISCOVERY OF COMMERCIAL DIAMOND DEPOSIT IN FINLAND
Chairman Reports On Year Of Substantial Progress On Exploration Projects BHP-Billiton Database Generates Numerous Targets For Follow-Up Target 295 Kimberlite Fragments And Micro Diamond Suggest Source Nearby Sunrise Now Positioned As Leading Diamond Explorer In Finland Mr. Patrick Cheetham, executive chairman of Sunrise Diamonds plc (AIM: SDS) reports on a year of “substantial progress” towards the discovery of commercial diamond deposits on the company’s extensive exploration areas in Finland.
In the company’s audited financial statement for the year ended September 30, 2006, published today, he says that Sunrise has in a short time positioned itself as the leading diamond exploration company operating in Finland. “It has an enviable landholding and a substantial inventory of targets developed from the BHP Billiton proprietary diamond exploration database that is the most comprehensive in use in Finland today”.
The company is exploring in the Karelian Craton which on the Russian side of the Finnish border contains the rich diamond deposits of Lomonosov at Arkhangelsk now under development.
Sunrise directors believe there is potential for similar types of deposits on the Finnish part of the Craton and following an exclusive agreement, the company is generating additional targets on the back of the BHP Billiton database which is perceived to have a replacement value in excess of £5m against Sunrise’s total £2.9m capitalisation.
Exploration by Sunrise this year, Mr. Cheetham states, has added a further three kimberlite discoveries bringing the total at Kuusamo to seven of which three are now known to be diamondiferous.
A joint venture with Canada’s Nordic Diamonds in which Sunrise is earning a 75p.c. interest has resulted in the recent recovery of a micro-diamond from glacial sediments at Target 295 in the Kaavi-Kuopio area of south central Finland. The micro-diamond together with favourable chemistry of the indicator minerals, suggests a significant diamond source nearby, says Mr. Cheetham. Nordic’s parcel of claims – including untested targets – takes in 16 of 20 kimberlites discovered by Ashton in the 1990s with most being diamondiferous and some with commercial potential.
“Diamonds are always hard to find, but commercial diamond discoveries deliver superior returns to shareholders compared to discoveries of other commodities”, he observes.
Sunrise posted a loss of £179,209 (2005: £239,092) for the year ending September 30, 2006.
Further Information: Patrick Cheetham Sunrise Diamonds plc. Tel: +44 (0)1625-505-947 or +44 (0)7767-458-751
Ron Marshman/John Greenhalgh City of London PR Limited Tel: +44 (0)207-628-5518
Judith Hayes email: judith.hayes@sunrisediamonds.com Sunrise Diamonds plc Sunrise House Hulley Road Macclesfield SK10 2LP United Kingdom Tel: +44 (0) 1625 505947 Fax: +44 (0) 1625 626204
www.sunrisediamonds.com
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