Sale of Junction Gold (-Copper) Project

RNS Number : 2199P

Sunrise Resources Plc

30 August 2017

 

SUNRISE RESOURCES PLC

("Sunrise" or "the Company")

30 August 2017

SALE OF JUNCTION GOLD (-COPPER) PROJECT

Sunrise Resources plc, the AIM-traded company focusing on the development of its CS Pozzolan-Perlite Project in Nevada, USA, is pleased to advise progress in its strategy to valorise and rationalise its project portfolio with the sale of its Junction Gold (-Copper) Project in Humboldt County, northwestern Nevada, USA ("Junction Project" or "the Project").

Highlights:

·     Junction Project sold to TSX-V listed VR Resources Ltd ("VR"), by executed, binding Acquisition Agreement (dated 29 August, 2017).

·     Completion subject only to TSX approval prior to 30 September 2017.

·     Initial payment US$10,000 + 50,000 shares in VR due on Completion.

·     Further payment of 50,000 shares in VR should drilling take place. Project returned to Sunrise if no drilling takes place within 18 months of the date of the Acquisition Agreement.

·     Further payment of 250,000 shares in VR should VR complete and file a 43-101 compliant report containing a resource estimate for the Project.

·     Royalty payments on production equal to 3% of the Net Smelter Return, subject to VR's right to buy up to half of the royalty entitlement (1.5%) for US$500,000 per half-percent.

·     Terms of agreement, including royalty, extend to a 2 mile area of influence from the current Project claim boundary.

Commenting today, Executive Chairman Patrick Cheetham said: "The deal we are announcing today is the first of what we hope will be a number of project disposals following our decision to focus the Company on the development of the CS Project in Nevada.  VR is a recently listed and well-funded company run by seasoned industry professionals with a track record of delivering value for shareholders. We believe this agreement offers the Company a "ground-floor" and well timed opportunity to participate in VR's future successes, not just with the Junction Project, but also with its other exciting exploration projects, most notably the large-scale porphyry copper-gold system at its Bonita Property, which VR is drilling this summer following some 2½ years of district-scale exploration targeting. Bonita is also located in Humboldt County, and exploration at Junction will benefit from synergies with VR's experience and focus at Bonita."

Further information

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

Additional Information

1.   Intangible asset value of the Junction Project on 30 September 2016: £14,189. No significant expenditure has been undertaken on the Junction Project since that date.

2.   The price per VR ordinary share was C$0.27 at close of trading on 25 August 2017.

3.   VR consideration shares will be held by the Company for a minimum period of four months and one day following issue, a requirement of National Instrument 45-102, Part 2, Section 2.5 (2) 3(ii), under Canadian Securities Law.  Thereafter any sale of consideration shares will be subject to ongoing review and any funds released from future sales will be applied, together with the cash element of the consideration, to advancing the Company's pozzolan and perlite project interests.

About VR Resources Ltd (TSX: VRR.V)

VR Resources Ltd. ("VR") is a new listing on the TSX Venture Exchange. It successfully closed a C$4.4M financing in early 2017 concurrent with the RTO and listing process, and is fully funded for a two-year exploration strategy.

VR is the continuance of 4 years of active exploration by a Vancouver-based private exploration company founded and run by two geologists, Dr Michael Gunning and Darin Wagner, with diverse experience in global mineral exploration, and a proven track record in the junior sector, having steered the sale of three companies in the past 5 years for an aggregate valuation in excess of C$1.3B. The focus of VR is copper exploration in the western United States, namely Nevada.  The business model is value creation by discovery, grounded by their experience in blue sky, grass roots exploration, and leveraged by work on assets they own outright.

Dr Michael Gunning, President and CEO, has greater than 25 years of industry experience with both provincial and federal Geological Surveys, Teck Resources, as CEO of Hathor Exploration acquired by Rio Tinto for C$654M in 2012, and Executive Chairman of Alpha Minerals acquired in 2013 for C$180M. Darin Wagner, Chairman, also has greater than 25 years of industry experience with Xstrata, Teck  Resources, and as a senior officer with New Millennium and Sydney Resources (both in successful mergers) and as CEO of West Timmins Mining, sold to Lake Shore Gold for C$454M. He is currently CEO of Balmoral Resources.

(Source: www.vrr.ca)

About the Junction Gold (-Copper) Project

The Junction Gold (-Copper) Project is located in Humboldt County in northern-most Nevada, with easy access from Highway 140. 

There is no record of modern, systematic exploration on the property, but there are a number of historic bulldozer trenches, excavations and shallow prospecting tunnels, and reference to exploration drilling by a prospecting syndicate sometime in the 1960's. The excavations are scattered in a northwest trending zone over 1.2 sq.kms, and target copper mineralisation in quartz veins and pegmatite dykes in shear zones hosted within Cretaceous age granite.

The Company has identified a new gold zone on the property, some 250 m northwest from the historic copper zone. Most of the zone is covered by soil, and its potential strike extensions are open in both directions.  During two separate field programs run by the Company in 2014 and in 2015, five grab samples from the new quartz vein trend over a strike length of 240 m contained gold with assays ranging from 1.3 to 12.9 g/t gold, averaging 5.6 g/t gold. Two samples of altered granite wall rock from near the reef assayed 1.6 and 3.8 g/t gold suggesting potential for more significant widths of gold mineralisation.

Select samples from the copper zone assay up to 4.7% copper with 0.7 g/t gold. The higher grade copper mineralisation is associated with high levels of bismuth (up to 180 ppm) and silver (up to 87 g/t). The gold zone samples are low in copper, bismuth and silver.

The deposit has the characteristics of an intrusion related gold deposit, but also of the orogenic gold type, a type that host some of the largest gold endowments of any gold deposit type around the world but which has not traditionally been the target of gold exploration in Nevada.

Notes:

1.   The 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 unduly 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.

2.   This announcement contains inside information.

3.   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

 

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