REG - Sunrise Resources - Update - Pioche Sepiolite Project

Sunrise ResourcesAnnouncement

25/10/2022 07:00

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RNS Number : 9409D  Sunrise Resources Plc  25 October 2022

25  October 2022

 

SUNRISE RESOURCES PLC

("Sunrise" or the "Company")

 

Update - Pioche Sepiolite Project

 

Further to its announcements of 28 June and 2 September 2022, Sunrise
Resources plc is pleased to advise that Tolsa USA Inc. ("Tolsa") has received
approval from the US Bureau of Land Management ("BLM") for its proposed
trenching programme at the Company's Pioche Sepiolite Project in Nevada, USA
(the "Pioche Project") and that Tolsa will start work this week.

 

Key Points

 

·    Tolsa's BLM Notice Level permit is approved and reclamation bond
submitted.

 

·    Up to 2km of excavator trenching will start this week to better
expose and sample the mapped sepiolite deposits (see announcement of 2
September for detail).

 

·    On 28 June 2022, Sunrise granted Tolsa a 6-month option to purchase
the Pioche Project for $1.25 million and an ongoing payment to Sunrise of a 3%
royalty. This option may be extended for a further 12 months on payment of
$50,000 to Sunrise within the option period (see announcement of 28 June for
detail).

 

·    Tolsa is a US subsidiary of Tolsa S.A., the world's largest producer
of sepiolite.

 

·    Sepiolite, an industrial mineral, has unique characteristics, is
scarce, with very few commercial deposits in the world.

 

 

 

 

Commenting today, Executive Chairman Patrick Cheetham said:

 

"We are pleased to see that the permitting has proceeded smoothly and in a
timely manner and that Tolsa is now proceeding immediately with its proposed
exploration programme, having already identified multiple horizons of
sepiolite at the Pioche Project.

 

The trenching programme will provide further exposures of the sepiolite beds
to enable a better evaluation of their thicknesses and quality.

 

Whilst our focus remains on the CS and Hazen pozzolan projects, the Pioche
Project exemplifies the Company's long-standing strategy to identify
overlooked mineral opportunities and convert these into cash and free carried
royalty interests such as those the Company already holds on the Junction,
Garfield and Stonewall exploration projects.

 

We are pleased that the Pioche Project continues to advance at a fast pace and
we look forward to the results from this next stage of evaluation."

 

___________________________________________________________________________

 

 

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

 

 

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

 

About Sepiolite

 

Sepiolite is a non-swelling, lightweight, porous clay with outstanding
sorption capacity. The largest market globally for sepiolite is for use in
lightweight non-clumping pet litters where it has superior properties compared
to other clays used in this application.

 

Sepiolite is also used extensively in 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 used as a
suspending agent in paints, medicines, pharmaceuticals and cosmetics, and in
high temperature drilling muds.

 

Sepiolite is a very uncommon clay because of both its unusual characteristics
and scarce occurrence. There are very few commercial deposits in the world
and, with one exception, there are no significant sepiolite deposits known in
the USA, so a large potential market would exist for any new US producer of
sepiolite.

 

 

About Tolsa

 

Tolsa S.A., founded in Spain in 1957, is a privately owned specialist clay
mining and processing company that now operates in 95 countries including the
USA where it has bentonite mining operations in Wyoming and processing
facilities in Nevada.

 

It is the largest producer of sepiolite in the world, mainly from its mining
operations near Madrid in Spain and it is Europe's largest producer of
lightweight hygienic pet litter with 37% of the European market.

 

In 2021, Tolsa reported global turnover of  Euros 193 million, a clay
processing capacity of 1.2 million tons/year and annual production of over 1
million tons of clay products.

 

 

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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