LONDON (ShareCast) - Sunrise Resources, the mineral development company, reported the recovery of diamonds samples from its Cue Diamond Project in western Australia.

Diamonds were recovered from two target areas and 15 small samples were processed from nine drill holes at four separate target areas, which is proof, the company says, that its strategy and exploration methods are paying off.

"The results confirm that the new kimberlite discovery north west of the Soapy Bore kimberlite is diamondiferous and that at least one drill hole at Area 6 intersected diamondiferous material," said chief executive Patrick Cheetham.

"The unremarkable appearance of the diamond material at Area 6 suggests it could have easily been missed but for the methodical work being undertaken. Other drill Intersections with similar geology and geochemistry remain of high interest."

In a note to investors on Monday, Northland Research UK said the findings validated Sunrise's exploration techniques and that prospects for future research operations were bright.

"Bigger samples could lead to the recovery of diamonds at these targets and further sampling will be required. Proving that diamonds are present in the kimberlite dykes is the first step in the long process of kimberlite evaluation," Northland Research said.

Sunrise shares were down 5.65% to 0.40p at 12:52 on Tuesday.

DC

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