TIDMSRES
RNS Number : 4993T
Sunrise Resources Plc
04 July 2018
SUNRISE RESOURCES PLC
("Sunrise" or "the Company")
4 July 2018
CS PROJECT UPDATE
Sunrise Resources plc, the AIM-traded company focusing on the
development of its CS Pozzolan-Perlite Project in Nevada, USA, is
pleased to provide the following project update.
Permitting
Ø Permitting studies and regulatory process on track - season
dependent baseline studies completed.
Ø Environmental consultants advise that the baseline studies
have not identified any obstacles to the proposed mine development
although the final assessment rests with the regulatory
authorities.
Pozzolan Testwork
Ø Strength-Activity-Index ("SAI") testing of Phase 2 priority
drill samples complete.
Ø Main Zone:
-- SAI results for samples from infill and step out drill holes
confirm thick intersections of high quality natural pozzolan
("HQNP").
-- 30m vertical thickness of HQNP from 1.5m depth to the bottom
of drill hole 18CSRC31, a 300m step out from the nearest hole in
the Main Zone.
Ø Tuff Zone:
-- SAI results from drill holes at east end of Tuff Zone confirm
thick intersection of HQNP in all holes from near surface e.g. 43m
from 3m depth to base of hole 18CSRC14.
-- Surface mapping samples indicate HQNP extends at least 750m along strike.
-- Three drill holes at far west end of Tuff Zone give mixed results.
Ø Northeast Exploration Area: 38m of HQNP intersected in hole
18CSRC32 from 1.5 m depth in first and, so far, only drill hole in
this large target area.
Perlite Testwork
Ø Expansion testwork complete. Application specific testing for
cryogenic and horticultural applications complete. Testing for
ceiling tile and plasters and mortar in progress.
Ø Results support multiple applications for different zones of
perlite.
Marketing
Ø Discussions and negotiations continuing with potential
customers for HQNP and perlite. Samples provided for customer
testwork.
Executive Chairman Patrick Cheetham commented: "I am pleased to
be reporting further progress as we advance the CS Project towards
production. The favourable results from our baseline environmental
studies will facilitate a smooth permitting process and the
regulatory process is on track. Testwork results continue to be
outstanding and will feed into our mine and process plant designs
which we expect to complete within the next two months. In addition
to the previously reported interest in our future perlite
production, we are pleased with the high level of interest being
shown by potential customers in our future HQNP production and we
continue to service these enquiries and provide samples for the
customers' own testwork."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Further information
Sunrise Resources plc
Patrick Cheetham, Executive Chairman Tel: +44 (0)1625 838 884
Northland Capital Partners Limited
Nominated Adviser & Broker
Matthew Johnson/Edward Hutton/
Jamie Spotswood
John Howes/Rob Rees Tel: +44 (0)20 3861 6625
Drill hole Location Plan
A plan showing the location of Phase 1 and 2 drill holes is
available on the CS Project page of the Company's website:
https://www.sunriseresourcesplc.com/cs-project
Detailed information
Permitting
The lead agency for permitting the CS Project is the (Federal)
Bureau of Land Management ("BLM") and a reclamation permit is
required from the Nevada Division of Environmental Protection.
The Company's expectation is that the CS Project will not
require an extensive Environmental Impact Statement ("EIS") but
rather a simpler Environmental Assessment ("EA"). This decision is
made by the BLM based on an assessment of the project's potential
impact on the human and natural environment. This requires that the
Company carry out various baseline surveys to establish the
pre-mining biological and cultural values of the land that may be
disturbed in future. In this case the Company's identified "Project
Area" covers 560 acres incorporating 431 acres of potential future
disturbance.
The Company has now completed the season sensitive and key
baseline studies over the Project Area. These included botanical
surveys, which had to be completed in the peak growing season
(spring or early summer) and wildlife surveys. The wildlife surveys
included bird surveys and golden eagle surveys which need to be
completed in the nesting season by helicopter and included a 10km
buffer zone around the Project Area.
Baseline cultural surveys have also been completed over the
Project Area and included assessment of archaeological and
architectural values and indirect visual effects. A small number of
archaeological features of significance were identified in the
broader Project Area but as these are not within the proposed mine
disturbance areas they can easily be avoided.
The Company's environmental consultants responsible for the
biological and cultural surveys have concluded that the proposed
mine development will not impact any significant biological or
cultural sites, although the final assessment is made by the
BLM.
The baseline survey reports will be submitted to the BLM for
approval and following completion of the mine plan and preliminary
process plant design a formal Plan of Operations will be submitted
to the BLM. The Plan of Operations sets out the finer detail of the
proposed mining and mineral processing operation and, together with
the baseline studies, forms the basis on which the Environmental
Assessment is made. This will be made available for public comment
although the Project Area is not close to any human habitation.
Pozzolan Testwork
The testing programme for the 2018 Phase 2 drill samples is
nearing completion and results for the highest priority drill
samples have been received. The testwork programme has comprised
7-day and 28-day SAI testing at Magmatics Inc's Idaho laboratory
with selected samples being submitted to a third party for
independent confirmation.
Main Zone
In Phase 2, three drill holes were completed in the Main Zone to
evaluate the extensive tephra deposits. These deposits have
previously been sampled in surface outcrops and in Phase 1 drilling
and, in places, are capped by perlite which is also a HQNP. The
results from testing tephra samples from all three holes
demonstrate thick intervals of HQNP.
Two of these holes are in the area being considered for first
mine production and one hole (18CSRC31) was a 300m step out from
previous drilling in the Main Zone. The step out hole was very
successful with test results defining a 30m vertical thickness of
HQNP from 1.5m depth to the bottom of the hole.
Thirteen drill holes tested separate areas of Perlite-HQNP in
the Main Zone which have production potential for both perlite and
HQNP. SAI testing of samples is continuing with excellent results
to date.
Tuff Zone
A second area being considered for initial mine production is
the east end of the Tuff Zone where Phase 1 drilling identified
thick intervals of volcanic tuff HQNP (non-perlitic).
SAI testing of samples from a further three holes completed over
a strike length of 180m for mine planning purposes also demonstrate
thick intervals of HQNP e.g. 43m vertical thickness from 3.0m to
the end of drill hole 18CSRC14, open at depth.
These three holes are collared in outcropping tuff which has
been traced continuously for several hundred metres to the east.
SAI testing of samples collected during mapping of these outcrops
demonstrates the tuff deposits meet the requirements for HQNP over
an additional 570m strike length towards the west end of the Tuff
Zone.
Samples from three drill holes at the west end of the Tuff Zone
have given more mixed testing results and indicate a geologically
more complex picture for this end of the Tuff Zone.
Northeast Exploration Area
Drill hole 18CSRC32 is the first and, so far, only test of the
Northeast Exploration Area. Although split from the Main Zone by
the County Road this area is considered contiguous with it and
covers a large area.
Hole 18CSRC32 intersected 38m of HQNP vertically from 1.5m to
the end of the hole, open at depth.
The Northeast Exploration Area was included in the baseline
surveys and will be permitted for future exploration, targeting
long-term future reserves.
Perlite Testwork
Drill samples and outcrop samples of perlite from the Main Zone
have been tested for expandability and are now undergoing
application specific testing. Testing for cryogenic and
horticultural applications is complete and testing for
plaster/mortars and ceiling tile applications is in progress.
Results continue to demonstrate potential for different
applications for different parts of the perlite deposits. Testing
of the perlite that caps the tephra deposits earmarked for first
mine production test favourably against commercial reference
material for horticultural applications where the market is growing
on the back of increasing demand from the marijuana industry as
legalisation of marijuana spreads across North America.
Following the recent announcement of the signing of two
Memoranda of Understanding ("MOU") with two potential perlite
customers a laboratory has been selected for the preparation of a
crushed and size-screened 6 tonne sample for expansion testing of
horticultural grade perlite on a commercial scale.
The pozzolan and perlite testwork results obtained to date will
now allow for the completion of the phased mine plan and the
initial process plant design.
Marketing
The Company's marketing programme for perlite is making good
progress as evidenced by recent MOU announcements. As additional
application testing data becomes available the Company is reaching
out to additional perlite customers.
The Company is actively engaged in discussions and negotiations
with potential offtake customers for the Company's future
production of HQNP and is very pleased with the level of interest
being shown as the supplies of traditional fly ash pozzolan
continues to tighten. HQNP samples are being provided for
customer's own internal test work.
End
About Natural Pozzolan
Pozzolan is a cementitious material that can partially replace
ordinary Portland cement in cement and concrete mixes in amounts up
to 35%. Natural pozzolans, therefore, have strong "green"
credentials as the production of Portland cement is responsible for
5% of the global man-made carbon dioxide emissions with nearly one
tonne of carbon dioxide (CO(2) ) generated for each tonne of cement
produced. Natural pozzolans can also improve the strength and
chemical resistance of concrete. Natural pozzolans can also replace
industrial by-product pozzolans in cement such as coal fly ash. The
availability and quality of fly ash is under threat as coal-fired
power stations are phased out in favour of natural gas plants and
fly ash quality becomes more variable due to increased emission
control legislation.
About Perlite
Perlite is a glassy raw material which, when heated in a
furnace, pops like popcorn and expands by up to 20 times in volume
into a white or pale coloured, low density material. Expanded
perlite is used in various industrial and household applications
such as insulation, paint texturing, building materials, filter
aids, insulating industrial cryogenic storage vessels and as a
potting medium in gardening and horticulture to aid water retention
and aeration of the soil. Some perlites can also be used as a
natural pozzolan.
Note:
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.
Shares in the Company trade on AIM. EPIC: "SRES".
Website: https://www.sunriseresourcesplc.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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