Sunrise Resources reveals high grade results from Derryginagh barite project – UPDATE
Sunrise Resources (LON:SRES) says that its continued feasibility work is justified at the Derryginagh barite project as drilling returns high grade results.This morning the company revealed results from the company's first drill programme at the project in south-west Ireland.
The findings confirm high-grade vein intersections below historical mine workings, Sunrise said.
The best results included a 3.6 metre intersection containing 89 per cent barite from a depth of 200 metres and a 3.2 metre intersection of 61 per cent barite from 220 metres. Sunrise says the barite mineralisation remains open at depth and along strike.
"These results confirm that high-grade extensions to the Derryginagh barite vein system exist well below the old mine workings, and below the level of previous drilling carried out in the 1980s," said chairman Patrick Cheetham.
"The dimensions of the vein system outlined by drilling to-date are encouraging and further feasibility studies are justified."
Sunrise is now planning further feasibility work at the project.
Barite is an industrial mineral that has many uses, it is most commonly used as a weighting agent in drilling and as a filler in paint. Sunrise believes that the Derryginagh barite is of a sufficient quality to be used as a ‘premium' paint filler, and as such its market value is estimated at around £200 per tonne.
"The market seems to be warning to the barite story given recent strong pricing and demand fundamentals which we see continuing," said Andrew McGeary, analyst at Northland Capital.
The analyst added: "The (drill) campaign has successfully extended the mineralisation at depth, and demonstrated high grades with good continuity."
According to McGeary it is expected to be a relatively simple task to extrapolate the thickness of Derryginagh's barite mineralisation so that Sunrise can gain a good understanding of the deposit.
"Thus, while it is not ruled out at this stage, a JORC resource may not be necessary to progress the deposit. The next stage is likely to comprise some form of scoping study incorporating the new data," he said.
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