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Northland Capital Partners View on the City - Premier African Minerals, Sunrise Resources

Premier African Minerals (LON:PREM) – CORP: RHA update

Market Cap: £12m; Current Price: 0.65p

From yesterday: Production recommence at RHA

Plant upgrades are now installed and operational at the RHA Tungsten Project, located in Zimbabwe, and wolframite concentrate has been produced.

A phased commissioning and optimisation process is underway to achieve the anticipated grades and through put will be steadily increased to reach design capacity of 16t per hour.

The recently reported (17/05/16) XRT test-work on bulk sample material has been rerun confirming the positive recoveries reported previously.

Sunrise Resources (LON:SRES) – SPECULATIVE BUY*: Newark Gold Project

Market Cap: £2.3m; Current Price: 0.2p

Prospective for Carlin-style mineralisation

Reconnaissance samples confirm prospective geochemistry with a number of Carlin-style indicator elements including arsenic, antimony, thallium and barium.

A major silicified structure is associated with a favourable north-south striking anticlinal trap.

16 reconnaissance holes were drilled by Freeport-McMoRan Gold Co. with results including 47m of 0.14ppm Au from 75m (NWK-8), but a number of the holes failed to reach their target depth.

NORTHLAND CAPITAL PARTNERS VIEW: At the recently staked Newark Gold Project, located in Nevada, Sunrise Resources is targeting Carlin-style gold mineralisation. Carlin-style deposits can be large e.g. 39moz at 3.3g/t Au at the Goldstrike deposit and high-grade e.g. 10.6g/t Au for 8.6moz Au at the Goldrush deposit. The project has all the geochemical and structural characterises of a Carlin-style deposit but has not been fully tested. The historic drilling only tested the Chainman Shale and not the more prospective Joanna Limestone and Pilot Shales that host the majority of gold deposits in the area. Sunrise believes that a deeper drill programme is justified.

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