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Cue Project — Western Australia — Diamonds, gold and platinum group metals In October 2009 the Company announced that it had applied for an exploration licence targeting diamonds, gold and platinum group metals (PGM’s) in Western Australia.

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 Murchison Region was explored by De Beers in the period 1994–2001 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 2–3m 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 3m wide, were

encountered in two drill traverses spaced 400m apart.

According to De Beers, 13 diamonds were recovered for a total weight of 0.00379 carats from a 64kg sample of kimberlite taken from drill-core at Soapy Well. Whilst not providing any information on sampling of the Cue No.1 kimberlite, the report states that “two diamondiferous dykes, Cue 1 and Soapy Well 1, have been discovered so far”.

De Beers, in its final report for the area, also reported positive results from follow-up exploration at two additional kimberlite targets within the Company’s new licence application area. This included further soil sampling and ground geophysics which identified multiple drill targets for kimberlite at Fennels Well, 2.5km along strike from the Cue No 1 kimberlite and in a separate area close to the Cue 1 kimberlite where a new area of kimberlite rock debris was found. These targets were never tested by De Beers.

Annual Report 2009


Cue Project


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, this gabbro dyke is now targeted by Sunrise for PGMs and gold. It is located in the same region as the Weld Range PGM deposit (reported Inferred Resource >0.5 million ounces platinum+palladium+gold) the discovery of which was initiated by Sunrise’s Executive Chairman, Patrick Cheetham, when Joint Managing Director of Dragon Mining NL.

Derryginagh Project, Republic of Ireland — Barite In November 2009 the Company was granted a Prospecting Licence for base metals, barite, silver, gold

and platinum group elements near Bantry, County Cork, in the south-west of the Irish Republic.

The Company is targeting the Derryginagh barite deposit for the production of high value white “paint- grade” barite for use as mineral filler in paints and plastics. This is the highest-value use for barite having significant sales volumes. Off-white barite is used as



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