Project Update

RNS Number : 4234U

Sunrise Resources Plc

07 April 2016

 

 7 April 2016

SUNRISE RESOURCES PLC

("Sunrise" or "the Company")

Project Update

Following on from its recently announced fundraising, Sunrise Resources plc, the AIM-traded diversified mineral exploration and development company is pleased to provide the following project update.  

Highlights:

·     Bay State Silver Project, Nevada:  Surface and underground sampling to continue to the south of existing exploration areas in preparation for follow-up drilling of earlier high-grade silver drill results.

·     Trenching and soil sampling to be undertaken on the Garfield and Junction gold-copper projects in Nevada to evaluate high-grade surface mineralisation.

·     Sampling and process testwork planned for Pozz Ash Project in Nevada to determine suitability as a natural "green" cement replacement raw material.

·     New Nevada subsidiary to be formed to acquire gold projects in Nevada using low-cost project generator model.

·     Fieldwork planned at Cue Diamond Project in Australia targeting the source of Target 5 diamondiferous kimberlite float and additional kimberlite geophysical anomalies.

Commenting today, Executive Chairman Patrick Cheetham said: "I am pleased to have increased my interest in the Company by participating in our recent fundraising and look forward to reporting results from our work programmes over the coming months. I am particularly excited about increasing our exposure to the resurgent gold sector in Nevada, one of the major gold producing areas of the World, where a five year decline in the junior resource sector has opened up some great opportunities."

Further information:

Sunrise Resources plc Patrick Cheetham, Executive Chairman	Tel:	[phone]
Northland Capital Partners Limited Nominated Adviser & Broker Edward Hutton/David Hignell Broking John Howes/Rob Rees (Broking) Beaufort Securities Limited Joint Broker Jon Belliss	Tel: Tel:	[phone] [phone]

Detailed Information

The Company's strategy is to generate cash flow from more advanced projects, particularly industrial minerals projects, whilst continuing its more speculative exploration programmes targeting valuable precious and base metal deposits.

The Company's programme in the next few months will continue to deliver on this strategy following its recent lease/royalty agreement on the County Line Diatomite Project which has the potential to provide a sustaining cash flow for the Company.

Precious Metal Projects

At the Bay State Silver Project in eastern Nevada, intersections of high-grade silver mineralisation were reported late last year in each of the first three drill holes completed on the north and central part of the Chihuahua vein system over a strike length of 320m:

o  1,460 g/t silver (42.6 oz/ton) over 0.2m from 164.13m in Hole 15SRDD002

o     566 g/t silver (16.5 oz/ton) over 0.5m from 70.71m in Hole 15SRDD001

o     503 g/t silver (14.7 oz/ton) over 1.4m from 185.32m in Hole 15SRDD003

This high success rate was facilitated by a programme of surface and underground sampling and mapping last summer along the northern sector of the Chihuahua Vein.

As soon as the snow and weather conditions allow, the Company will extend its surface and underground mapping programme south along the Chihuahua Vein. This will allow the Company to optimise the next stage of drilling, which is already permitted.  

The Company has budgeted for work on its earlier stage Garfield and Junction gold-copper-silver projects which represent prospecting discoveries for the Company. At Garfield a trenching programme has already been permitted and will be undertaken shortly to evaluate a surface occurrence of high grade gold-copper-silver mineralisation. At the Junction Project, where outcropping quartz veins have assayed up to 16 grammes/tonne gold (0.5 ounces gold/ton), a detailed soil sampling programme will be undertaken to generate drill targets.

New Nevada Gold Subsidiary

The prolonged downturn in the mining industry in the past few years has seen a significant increase in land available for staking in Nevada and the Company believes that this presents an exciting opportunity. The Company will therefore dedicate a modest budget to assemble a package of gold-silver projects in Nevada with a low-cost project generator model, offering projects for sale, lease or joint venture. A separate Nevada subsidiary will be formed for this purpose.

Industrial Minerals

The leasing of the Company's Country Line Diatomite Project in Nevada to leading diatomite producer EP Minerals LLC was a key development for the Company at the end of last year.

EP Minerals is currently responsible for all work and costs associated with this project and Sunrise retains a significant royalty interest. The first advance royalty payment of US$450,000 is payable to the Company in 14 months' time subject to EP Minerals' right to terminate its lease.

The Company hopes to replicate this strategy with other industrial minerals projects in the western USA, for example at the Company's newly acquired Pozz Ash Project in Nevada where the Company now plans a trenching programme to evaluate the depth extent of the pozzolan deposit and to collect subsurface samples for industrial testing of this alternative "green" raw material for use in cement and concrete mixes.

Other Projects

In Australia, a field programme will start shortly on the Cue Diamond Project to examine various geophysical anomalies identified by the Company and to further evaluate possible sources for the diamondiferous kimberlite float that is widespread at Target 5.  Drilling on the Company's Baker's Gold Project in Australia will be deferred until later in the year.

About Sunrise Resources plc

Sunrise Resources plc is an AIM-traded diversified mineral exploration and development company. The Company's objective is to develop profitable mining operations to sustain the Company's wider exploration efforts and create value for shareholders through the discovery of world-class deposits.

The Company holds a royalty interest from EP Minerals in a diatomite project in Nevada and holds a number of other industrial minerals projects. The Company has diamond and gold exploration interests in Western Australia and has active exploration projects on a number of base and precious metal projects in Nevada, USA.

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

http://www.sunriseresourcesplc.com

Notes:

1.   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.

2.    Forward-Looking Statements: This news release may contain certain statements and expressions of belief, expectation or opinion which are forward-looking statements, and which relate, inter alia, to the Company's proposed strategy, plans and objectives or to the expectations or intentions of the Company's directors. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the control of the Company that could cause the actual performance or achievements of the Company to be materially different from such forward-looking statements. Accordingly, you should not rely on any forward-looking statements and, save as required by the AIM Rules for Companies or by law, the Company does not accept any obligation to disseminate any updates or revisions to such forward-looking statements.

 

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