TIDMSRES
RNS Number : 0068K
Sunrise Resources Plc
19 September 2016
SUNRISE RESOURCES PLC
("Sunrise" or the "Company")
19 September 2016
Strategy and Business Overview
Sunrise Resources plc (LON:SRES), the London Stock Exchange
AIM-traded diversified mineral exploration and development Company,
is pleased to announce a Strategy and Business Overview for the
Company.
Patrick Cheetham, Executive Chairman notes: "I am pleased to
announce this overview for shareholders as we continue to develop
our business in readiness for what the Board believes is a building
recovery phase for the commodity sector.
Sunrise has numerous interests across its portfolio of mineral
assets and represents a diversified mineral resource investment
opportunity. Our business model and focus on precious metals and
strategic industrial mineral commodities, together with diligent
project selection, has delivered a project portfolio with the
potential for considerable returns for shareholders from a spread
of business interests.
The Board recognises that from an external viewpoint the depth
and breadth of our activities may appear complex and therefore
challenging to fully appreciate the fundamentals of the Company's
business model. Consequently we are working to further improve our
communications through RNS announcements, additional media work and
website enhancement, to make our business model better understood
and create a wider level of market awareness.
This announcement also contributes by outlining the extent of
our activities and summarising the status and plans for each
project.
Sunrise is highly ambitious and we consider the next commodities
cycle will present a tremendous opportunity. We are cost
effectively run, have assembled a very strong portfolio of
interests and are looking forward to updating the market on a
regular basis with progress across our business activities."
STRATEGIC OVERVIEW
Sunrise Resources' aim is to create value for shareholders
through the discovery of economic mineral deposits and develop
profitable mining operations to sustain the Company's wider
exploration efforts.
The Company's strategy to achieve this aim is to acquire,
explore and when appropriate develop mineral projects in stable,
democratic and mining friendly jurisdictions targeting:
1. advanced projects which have the potential to generate a sustaining cash flow; and
2. near-drill stage projects where there is potential for a significant mineral discovery.
BUSINESS MODEL
The Company identifies mineral project opportunities through
extensive archival research and follow up exploration. It prefers
to acquire its project interests by staking and licencing of 'open
ground' from the relevant authority. This allows the Company to
acquire 100% ownership of valuable assets, often at minimal
cost.
Sunrise is primarily focused on the quality of the opportunity
rather than any one specific commodity or industrial mineral. For
operational synergies, Sunrise prefers to generate new projects in
commodities or geographical areas where it already has interests.
An example of this is the acquisition of the Baker's Gold Project
in the same region as the Cue Diamond Project in Australia.
The Board seeks to run the Company with a low cost base in order
to maximise the amount that is spent on exploration and development
as this is where value can be added. Through the cost sharing
arrangement with Tertiary Minerals plc (LON:TYM) the Company has
the services of their 5 full time employees who also oversee a
range of carefully selected and experienced consultants and
contractors as and when work requires.
In exploring for world-class mineral deposits the Board accepts
that not all exploration will be successful but also that the
rewards for success can be spectacular.
PROJECT OVERVIEW
SR MINERALS INC - NEVADA, USA (100% Sunrise)
SR Minerals Inc. is the Company's original operating vehicle in
Nevada and holds two industrial minerals projects and a number of
precious and base-metal projects.
County Line Diatomite Project:
A potential new source of high value filter aid diatomite, a
commodity utilised primarily as a filtering media in the food and
beverage processing industry. Investors wishing to understand the
uses of diatomite can refer to the following web link from the
Industrial Minerals Association of North America:
http://www.ima-na.org/?page=what_is_diatomite
The County Line Project is currently leased to EP Minerals, LLC
(a leading diatomite producer) under a 25 year lease which is
renewable for a further two periods of 25 years or a maximum of 75
years in total. EP Minerals can terminate the lease at any
time.
Sunrise holds a revenue-based royalty payable six months from
the start of production and the first advanced royalty payment of
US$450,000 is due in June 2017.
Further details of the transaction can be found in the
announcement dated 3 December 2015 through the following web
link:
http://w3w.sunriseresourcesplc.com/downloads/Sunrise%20Resources%20plc%20-%20RNS%20-%20Agreement%20-%20County%20Line%20Diatomite%20Project%20-%203%20December%202015.pdf
The Company benefits from the potential to receive royalty
income at no further cost to the Company through this agreement
with EP Minerals.
Pozz Ash Project:
Natural pozzolan is considered to be a "green" cement
replacement raw material and the Company has identified in Nevada a
new potential source for pozzolan. Natural pozzolans have been used
for millenia and many of the Roman structures built with pozzolan
concrete remain today.
Although this project is still within the early evaluation stage
there is considered to be a large resource potential and the
Company is undertaking work to assess this.
The specific work involves process testwork and cement testing
in conjunction with an existing cement producer and results will be
provided to market as soon as practicable.
One key advantage is that the Company may be able to implement a
low cost development supplying natural pozzolan to a growing
regional market. However taking a wider view the Company sees a
global growth opportunity in natural pozzolan.
Investors wishing to learn more about pozzolan and the Company's
project should refer to the following web link:
http://www.sunriseresourcesplc.com/projects/pozz-ash-project
Bay State Silver Project:
The Bay State Project is a historic mine site with a narrow
high-grade mesothermal silver deposit.
The Company's work to date has encompassed positive underground
sampling and Phase 1 drilling with high grade silver encountered in
the first three drill holes. The grades included up to 1,460g/t
(42.6 ounces per tonne) silver as announced to the market on 22
October 2015.
On 30 August 2016 Sunrise announced that Phase 2 drilling would
commence on 7 September 2016 and would follow up the high-grade
silver encountered during the first phase of drilling. Drilling is
now completed and results are expected within 6 weeks. The Company
has drilled two holes to test the Chihuahua Vein south of Mining
Canyon and beneath 19(th) and 20(th) century mine workings and one
hole as a first test of the Lincoln Vein System.
The Bay State Silver Project is permitted for sufficient
drilling to define a maiden mineral resource. The Company's plan is
to drill-demonstrate tonnage potential, carry out economic
modelling and seek a JV partner for delineation drilling under
existing permits targeting a minimum 10 million ounce silver
reserve.
Further information on this project can be found on the
Company's website through the following link:
http://www.sunriseresourcesplc.com/projects/bay-state-silver-project
Garfield Copper-Gold Project:
The Garfield Project emerged from the Company's own internal
prospecting programme. To date one trench has been completed
demonstrating 22m grading 0.33% copper mineralisation,
including:
-- 2 metres grading 2.18% copper and 0.48 g/t gold from 16m-18m;
-- 2 metres grading 1.2 g/t gold and 0.07% copper from 8m-10m.
The Company intends to continue low cost trenching activities
along strike from the initial discovery outcrop where the early
trenching was undertaken.
The Garfield Project offers the potential for a large low grade
copper discovery and subject to continuing exploration success the
Company will seek a strategic farm out of the project.
Junction Gold Project:
Junction Gold is another internally generated prospecting
discovery and work to date has identified samples of outcropping
vein material with assays up to 16 g/t gold.
The next phase of work includes soil sampling to define targets
for trenching and drilling to determine the full potential of this
new discovery, although the results to date are favourable.
WESTGOLD INC - NEVADA, USA (100% Sunrise)
Incorporated in Nevada in 2016 as a project generator for gold
and silver projects in the western US, primarily to capitalise on
opportunities for staking projects that have lapsed in recent years
and during the recent poor market conditions.
Westgold projects are so far staked at minimal cost on the basis
of historical drill or surface sample results that warrant
follow-up and the strategy is to farm out these projects or to
complete limited drilling to substantiate historical results prior
to farm-out. The project generation work is on-going and the
Company will seek to update the market as material developments
occur.
Further information on the creation of this new subsidiary can
be found in the market announcement issued on 19 May 2016 which can
be viewed through the following web link:
http://www.sunriseresourcesplc.com/downloads/Sunrise%20Resources%20plc%20-%20RNS%20-%20New%20US%20Subsidiary%20and%20Projects%20-%2019%20May%202016.pdf
Newark Gold Project:
The Newark Project was historically drilled by Freeport-McMoRan
Gold Co. and the Company is targeting Carlin-Style mineralisation
which includes some of the largest gold deposits in the world.
The Company is targeting a single drill hole to support historic
data and subject to the successful outcome of this work would seek
to farm out the project to enable a more intensive exploration
programme to be undertaken without overstretching the Company's
financial resources.
The Newark Project is located at the confluence of major gold
trends in Nevada and should attract farm out interest after proof
of concept drilling.
Further information on the Newark Project can be found through
the following web link:
http://www.sunriseresourcesplc.com/downloads/Sunrise%20Resources%20plc%20-%20RNS%20-%20Newark%20Gold%20Project%20Update%20-%2019%20July%202016.pdf
Clayton Silver Project:
The Clayton Project has been the subject of historic exploration
by Freeport and Coeur Exploration. This work included 21 shallow
holes with significant silver intersections including up to 165 g/t
silver.
The Company is targeting epithermal silver mineralisation and
intends to collate the historic exploration data to produce a 3D
mineralisation model leading to further exploration work planning
and eventually drilling.
Further information on the Clayton Project can be found through
the following web link:
http://www.sunriseresourcesplc.com/downloads/Final%20Sunrise%20RNS%20Clayton%20Silver-Gold%20Project%207%20July%202016.pdf
Stonewall Gold-Silver Project:
The Stonewall Project comprises 15 claims staked over a major
epithermal vein system.
The next phase of exploration is expert mapping and analysis
leading to additional on ground exploration programme or potential
farm out.
SUNRISE MINERALS AUSTRALIA PTY LTD (100% Sunrise)
The Company's strategy is to position the Australian business as
a self-financing separate vehicle with an ambition to expand its
mineral property portfolio in Australia and ultimately to consider
a listing on the Australian Stock Exchange (ASX), thereby creating
tangible value for Sunrise shareholders.
Cue Diamond Project:
The Cue Diamond Project area was formerly explored by De Beers
in 1994-2002 during which a number of kimberlite dykes were
discovered. Kimberlites in the area of the Company's operations are
all diamondiferous.
The focus of the Company is within an area of higher-grade
diamondiferous float that suggest the potential for a commercial
discovery.
The Company intends to undertake low cost prospecting to
identify the source of diamondiferous float and with the benefit of
additional positive exploration work to move this project into a
farm out with a dedicated diamond explorer.
Baker's Gold Project:
The Baker's Project is located 25km southeast of Meekatharra on
the eastern limb of the Meekatharra Greenstone belt, a belt that
has, so far, yielded over 5.5 million ounces of gold.
Following historical exploration work the project is drill
ready, subject to aboriginal heritage clearance, and drilling will
test areas of historic workings and soil anomalies generated by the
Company to date.
Subject to successful further exploration the project location
makes any new discovery amenable to custom milling in the
Meekatharra area.
SUNRISE IRELAND (100% Sunrise)
Derryginagh Barite Project:
The Company holds a prospecting licence for base metals, barite,
silver, gold and platinum group elements near Bantry, County Cork,
in the south west of the Irish Republic.
Currently the project is focused on barite, a commodity used as
a weighting agent in oil industry drilling mud and as a higher
value industrial filler for use in paints and various other
products.
The project has been subject to significant work programmes by
the Company including drilling, metallurgical testing, marketing
studies and a scoping study by Wardell Armstrong in 2012.
The current cost for white paint-grade barite is
GBP190-220/tonne delivered to the UK. The above scoping study
considered a base-tonnage-grade estimate of 394,000 tonnes grading
81% barite. This is not a JORC compliant Mineral Resource
Estimate.
The Company continues to monitor developments in the barite
market and is seeking to secure value from this project at the
earliest opportunity.
Further information:
Sunrise Resources plc
Patrick Cheetham, Executive
Chairman Tel: +44 (0)1625 838 884
Northland Capital Partners
Limited
Nominated Adviser & Broker
Edward Hutton/David Hignell
John Howes/Rob Rees Tel: +44 (0)20 3861 6625
Beaufort Securities Limited
Joint Broker
Jon Belliss Tel: +44 (0)20 7382 8300
Notes:
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014 of the European Parliament
and of the Council.
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.
This announcement and the documents referred to in it contain
forward-looking statements. These statements relate to the future
prospects developments and business strategies of the Company and
its subsidiaries (the "Group") and are based on current
expectations and are subject to risks and uncertainties that could
cause actual results to differ materially from those expressed or
implied by those statements. If one or more of these risks or
uncertainties materialises, or if underlying assumptions prove
incorrect, the Group's actual results may vary materially from
those expected, estimated or projected. Work programmes are subject
to the availability of funding in future.
Shares in the Company trade on AIM. EPIC: "SRES"
Website: www.sunriseresourcesplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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