REG - Sunrise Resources - Exploration Update – Pioche Sepiolite Project

Sunrise ResourcesAnnouncement

13/08/2024 07:00

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RNS Number : 1598A  Sunrise Resources Plc  13 August 2024

 

13 August 2024

 

SUNRISE RESOURCES PLC

("Sunrise" or the "Company")

 

 

Exploration Update - Pioche Sepiolite Project

 

Further to the Company's announcement of 12 July 2024, Sunrise Resources plc
is pleased to advise that the Phase 2 drilling and pitting programme at its
Pioche Sepiolite Project in Nevada, USA has been successfully completed.

 

Summary:

 

·    Drilling was carried out using the sonic drilling method(1) by
drilling contractor Harris Exploration.

 

·    Drilling focussed on the central and eastern area of the claim block
(2022 drilling focussed on the central and western areas).

 

·    12 vertical holes completed for a total of 460m over an area of 160
ha.

 

·    6 pits were dug using an excavator to sample well defined sepiolite
beds at surface

over a strike length 2.7km.

 

·    107 separate drill samples and 6 pit samples have been sent to
Tolsa's lab in Spain for sepiolite characterisation.

 

The drill programme was managed and funded by Tolsa USA Inc ("Tolsa"), a
subsidiary of Spanish sepiolite producer, Tolsa S.A., the world's largest
sepiolite producer.

 

Tolsa holds an option to purchase the Pioche project for US$1.4 million
exercisable by 28 December 2024 with future payments to Sunrise of a 3%
revenue-based royalty on production.

 

 

Further information:

 Sunrise Resources plc                  Tel: +44 (0)1625 838 884

 Patrick Cheetham, Executive Chairman
                                        Tel: +44 (0)207 628 3396

 Beaumont Cornish Limited

 Nominated Adviser

 James Biddle/Roland Cornish
                                        Tel: +44 (0)207 469 0930

 Peterhouse Capital Limited

 Broker

 Lucy Williams/Duncan Vasey

 

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 which forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018 ('MAR'). Upon the publication of this
announcement via Regulatory Information Service ('RIS'), this inside
information is now considered to be in the public domain.

 

 

Nominated Adviser

 

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.

 

 

About Sepiolite

 

Sepiolite is a very uncommon clay because of both its peculiar characteristics
and scarce occurrence. It is non-swelling, lightweight and highly porous.
There are very few commercial deposits in the world.

 

It is used extensively in pet litter, in agriculture as a slow-release
absorbent and adsorbent, as a carrier for chemicals and pesticides and in
animal feeds as a binder and carrier for nutrients and growth promoter. It is
also a valuable gelling agent and viscosity modifier in several industrial
products.

 

Sepiolite, unlike other clays, is not affected by salt water and so sepiolite
drilling muds are used in oil field wells where brine formations are a
problem. It is also the only clay that is stable at high temperatures and so
is used in drilling muds for geothermal wells. Sepiolite is usually mined by
open pit methods and is processed by drying, grinding and screening and may
undergo further treatments and transformations depending on the market.

 

 

About the Pioche Sepiolite Project

 

The Pioche Sepiolite Project (the "Project") is located close to the historic
mining town of Pioche in Lincoln County, Nevada. It lies within 4km of US
Highway 93, from which it can be accessed by a network of 4WD tracks, and 47km
from rail at the town of Caliente, Nevada. The Project was acquired at low
cost by claim staking.

 

In the summer of 2023, Tolsa carried out a drill programme at the Project
(Phase 1). Twenty drill holes were competed for a total of 929.5 linear ft.
Holes were drilled to an average depth of 47ft reflecting the shallow
occurrence of sepiolite amenable to open-pit mining. The drill holes were
spaced relatively evenly over an area of 2km x 1.1km. A helical drill stem was
used to extract the samples and good recovery was achieved.

 

 

Tolsa may purchase the Project for US$1.4 million at any time before 28
December 2024 and has paid US$150,000 in option fees to date. Sunrise will
retain a 3% net revenue royalty for a 25-year period from the commencement of
commercial production should Tolsa exercise its option.

 

Further information on the Pioche Project can be found on the Company's
website at:

https://www.sunriseresourcesplc.com/pioche-sepiolite-project
(https://www.sunriseresourcesplc.com/pioche-sepiolite-project) .

Further information on the Company's agreements with Tolsa and information on
Sepiolite and Tolsa can be found in the company's news releases of 28 June
2022 and 27 December 2023 at:

https://www.sunriseresourcesplc.com/news/category/news
(https://www.sunriseresourcesplc.com/news/category/news)

 

Notes:

1. Sonic drilling is an advanced form of drilling which employs the use of
high-frequency, resonant energy generated inside the Sonic head to advance a
core barrel or casing into subsurface formations. During drilling, the
resonant energy is transferred down the drill string to the bit face at
various sonic frequencies. Simultaneously rotating the drill string evenly
distributes the energy and impact at the bit face. Sonic drilling is best
suited to drill sampling of soft and unconsolidated materials.

2.  Qualified Person Information:

The information in this release has been compiled and reviewed by Mr. Patrick
Cheetham (MIMMM, MAusIMM) who is a qualified person for the purposes of the
AIM Note for Mining and Oil & Gas Companies. Mr. Cheetham is a Member of
the Institute of Materials, Minerals & Mining and also a member of the
Australasian Institute of Mining & Metallurgy.

 

Shares in the Company trade on AIM. EPIC: "SRES".

Website: www.sunriseresourcesplc.com (http://www.sunriseresourcesplc.com)

 

 

 

 

 

 

 

 

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