REG - Sunrise Resources - Pioche Project Update

Sunrise ResourcesAnnouncement

27/09/2023 07:00

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RNS Number : 7500N  Sunrise Resources Plc  27 September 2023

27 September 2023

 

SUNRISE RESOURCES PLC

("Sunrise" or the "Company")

 

Pioche Project Update

 

Sunrise Resources plc is pleased to advise that Tolsa USA Inc. ("Tolsa"), the
company holding an option to purchase the Company's Pioche Sepiolite Project
in Nevada, USA, has provided a report to the Company on its summer drilling
programme.

 

 

Highlights

 

Ø 20 drill holes completed over an area 2km x 1.1km.

 

Ø Holes drilled to average depth of 47ft using truck mounted auger drill.

 

Ø Two principal horizons of medium-high grade sepiolite confirmed.

 

Ø 166 drill samples submitted to Tolsa's laboratory in Madrid.

 

Ø 40 samples selected for initial laboratory investigations to determine
commercial quality.

 

Tolsa (a subsidiary of Spanish Company, Tolsa S.A., the world's largest
producer of sepiolite) has an option to purchase the Pioche Project for
US$1.25 million no later than 28 December 2023 with the Company retaining a 3%
revenue royalty on production from the entire project area.

Following the successful completion of the drilling programme, Tolsa and the
Company have agreed to move forward to draft a definitive option agreement as
envisaged by the existing binding option agreement.

 

______________________________________________________________________

 

 

Commenting today, Executive Chairman Patrick Cheetham said:

 

"We are pleased to see that Tolsa's drilling campaign was successful in
demonstrating continuity of the sepiolite beds over a wide area and in
providing additional samples for commercial evaluation, work which is ongoing
in Spain. We are also encouraged by the decision to proceed to a definitive
agreement and look forward to Tolsa's decision on exercise of the option in
due course."

 

_________________________________________________________________________

 

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.

 

 

Detailed Information

 

Drill Programme

 

The drill programme was carried out using an auger drill mounted on a Ford
F550 truck and hauled from Tolsa USA's Casper Wyoming mine area.

 

Twenty drill holes were competed for a total of 929 linear feet. 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, where track access allowed and where
surface disturbance could be minimised. A helical drill stem was used to
extract the sepiolite samples which were cut from the materials retained on
the auger drill stem on extraction from the ground. Good recovery was
achieved.

 

The drilling confirmed two main levels of medium-high grade sepiolite clay and
166 samples were taken and shipped to Tolsa's laboratories in Madrid. Based on
textures, appearance, colour and lithological differences, 40 samples were
selected for testing for their commercial properties.

 

Testing is in progress.

 

Definitive Agreement

 

The Company's existing option agreement with Tolsa provides that a more
detailed agreement will to be entered into to incorporate the terms of the
existing binding agreement and to set out in more detail the parties agreement
on the matters contained in that binding agreement. Specifically this will
include the agreed form of the Conveyance Deed for transfer of the mining
claims on exercise of the Option and an agreed form of the Royalty Deed to
detail the terms and calculation, payment and auditing of the royalty.

 

 

About Sepiolite

 

Sepiolite is a rare form of clay with very few commercial deposits in the
world.  It is non-swelling, lightweight and highly porous. It is used
extensively in pet litter, agriculture as a slow-release absorbent and
adsorbent 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.

 

 

·    Further information on the Pioche Project and photographs from the
drill programme 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 agreement with Tolsa and
information on Sepiolite and Tolsa can be found in the company's news release
of 28 June 2022 at:

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

 

 

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

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

 

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.

 

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