REG - Sunrise Resources - Reese Ridge Zinc-Lead-Silver (-Gallium) Project

Sunrise ResourcesAnnouncement

31/10/2023 07:00

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RNS Number : 7690R  Sunrise Resources Plc  31 October 2023

31 October 2023

 

SUNRISE RESOURCES PLC

("Sunrise" or the "Company")

 

Reese Ridge Zinc-Lead-Silver (-Gallium) Project

 

Sunrise Resources plc is pleased to report positive results from further
evaluation work at its Reese Ridge Project in Nevada, USA, where the surface
occurrence of high-grade zinc mineralisation was reported by the Company on 29
June 2023.

 

The news release of 29 June 2023 highlighted a zone of low resistivity, below
the surface zinc occurrence, that was evident in a 2010 report from a
geophysical survey carried out to explore for geothermal energy. The Company
reported that such a low resistivity (high conductivity) zone could be
indicative of a significant zone of sulphide mineralisation.

 

The Company has now sourced the original (1)ZTEM airborne electromagnetic data
and commissioned leading Canadian geophysical company, Geotech Ltd
("Geotech"), to carry out further processing and 2D and 3D inversions on the
ZTEM data.  Computational power and inversion modelling has substantially
improved since 2010 and this has allowed Geotech to provide more reliable 3D
conductivity models for drill targeting.

 

3D inversion produces a 3D model that "maps" the conductivity of the earth at
and below surface. The newly developed 3D model has confirmed an annular zone
of low resistivity (high conductivity) below the surface mineralisation that
extends from just below near surface to a depth of nearly 1,000m. This annular
zone surrounds a core of high resistivity which the Company interprets as a
granitic intrusion. This would be consistent with a Carbonate Replacement
Deposit ("CRD") model for mineralisation.

 

CRD deposits can be large and high-grade as seen in the Taylor (Hermosa)
Deposit in the neighbouring State of Arizona which was purchased by South32
for $1.6 billion in 2018 and is now under development.

 

In other work at the Reese Ridge Project, the Company has received results
from a petrological report on thin section examination of mineralised surface
samples. This has indicated that the zinc mineralisation at surface is largely
contained in secondary minerals, the result of weathering or alteration, but
remnants of zinc sulphide (sphalerite) and lead sulphide (galena) were
identified consistent with sulphide mineralisation at depth and a possible
source for the low resistivity anomaly.

 

A review of chemical analyses from the surface mineralisation has identified
anomalously high levels of the metal gallium in the high-grade zinc samples -
up to 69ppm gallium. Gallium is an essential mineral in the production of
semi-conductors and is increasingly used in the production of solar panels. It
is also used in high frequency computer chips. It is extracted from some zinc
ores and approximately 80% of the world's gallium is produced in China.
 China has placed some restrictions on the export of gallium and gallium
compounds in response to the US's restrictions on the exports of high-end
computer chips to China.

 

The Company is now planning a follow-up exploration programme to include drill
testing.

 

Images from the 3D inversion models will be available on the Reese Ridge
Project Page on the Company's website.
https://www.sunriseresourcesplc.com/reese-ridge-project-nevada
(https://www.sunriseresourcesplc.com/reese-ridge-project-nevada)

 

 

________________________________________________________________________

 

 

"We are fortunate to have secured access to the airborne ZTEM data for this
project at no cost to the Company. The results from 3D conductivity modelling
are impressive, with exciting targets now defined.  The petrological work has
helped confirm that we are looking at CRD style mineralisation and the project
is now drill ready."

 

"The elevated gallium values are a pleasant surprise. Gallium is listed as
critical on the US Department of Energy's 2023 list of critical minerals as it
is critical to the green energy transition and at a high risk of supply
disruption. It is also important to high-end computer chips. We will ensure
that gallium is included in all further analyses at Reese Ridge."

 

Patrick Cheetham, Executive Chairman, Sunrise Resources plc.

 

 _________________________________________________________________________

 

 

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

 

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

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

 

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.

 

 

 

Notes:

 

1. ZTEM

 

ZTEM (http://bit.ly/1XV3d2t)  is a type of electromagnetic (EM) survey to
measure variations in the electrical properties of rocks. EM surveys try to
identify bodies of rock that conduct electricity well, like massive sulphide
bodies or rocks that resist carrying current more than their surrounds.
ZTEM  (http://bit.ly/1RtnuV4) surveys are different to other commercial EM
systems because they measure variations in naturally-occurring EM fields
rather than introducing an EM field into the ground and measuring the
responding field, like VTEM. Instead, ZTEM measures variations in the
naturally-occurring or passive magnetic fields produced by thunderstorms
around the world. This magnetic field is planar - constant in all directions -
but areas of highly conductive or very resistive rock will cause measurable
disruptions. ZTEM surveys are designed to map resistivity contrasts to great
depths, exceeding 1-2km.

 

 

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.

 

 

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